The Covid-19 pandemic has had a significant impact on the world’s supply chains, and carmakers have been particularly hard hit by the shortage of semiconductor chips that are widely used in the manufacturing process of new cars. At the same time, there has been an unexpected increase in demand for new vehicles from consumers during the pandemic, which has only made the situation worse.
This has led to a market in which used cars are increasingly in demand and has meant that, in some cases, used vehicles are fetching more than new cars. Taking care of an existing vehicle has become more important than ever for owners, which means that the services of vehicle protection plan companies such as CarGuard have become more important than ever.
Starting at the beginning of 2020, the car industry was forced to shut down its manufacturing facilities due to Covid-19 and halt orders from its suppliers. As a result of lockdowns during the pandemic, the demand for consumer electronics increased, which led to a significant overall chip shortage.
At the same time, unexpectedly, demand for new cars skyrocketed during the pandemic. These factors have meant that the supply of new cars cannot match the demand. The flow-on effect of this unmet demand is that buying a used vehicle has also become more complex.
Because there were fewer trade-ins for new cars, the price of used cars has increased significantly, which means there is good reason for owners to keep these cars longer and maintain them properly. Given that these cars are often outside the manufacturer’s warranty period, owners need to ensure these vehicles maintain their value.
CarGuard offers vehicle protection plans that protect car owners when involved in an accident, their car is stolen, or has suffered other major damage. This gives them peace of mind knowing that if their car becomes unusable, they can quickly have it repaired and get back on the road.
This type of protection is a great option when the manufacturer’s warranty on a car has expired or when the owner wants access to additional coverage for situations or damages which are not usually covered by their warranties. Given the ongoing impacts of the Covid-19 pandemic on the availability of new cars, keeping an existing car on the road has become a necessity, and CarGuard is a good way of making sure that it is covered in the event of an accident, theft, or breakdown.
Manufacturers’ warranties on new and used cars are referred to as ‘limited’ because they expire after a specified period and only protect the car owner in specific circumstances. A vehicle protection plan, such as those offered by CarGuard, is similar to that of a manufacturer’s warranty; these plans help cover the cost of repairs and maintenance that is not covered by a manufacturer’s warranty and provide coverage for other events such as an accident or when a vehicle is stolen.
These types of plans may also offer other benefits, such as roadside assistance when a car suffers a mechanical breakdown or the provision of a rental car to the car owner while their vehicle is being repaired. The cost of these types of plans can depend on the make and model of the car, whether it is new or used, the period of the contract and what is covered.
Car owners need to be aware that a manufacturer’s warranty only protects them from repair costs they face due to a car’s malfunction and not against other events such as accidents and theft. Such a warranty also does not protect the owner against breakdowns due to normal usage of the car and against unforeseen damages that are not the car manufacturer’s fault.
Vehicle protection plans, such as that provided by CarGuard, provide a service in which you pay a premium each month for protection that covers the car in events such as collision, breakdown, or theft, which are not normally covered by a manufacturer’s warranty. This type of protection can also help you in the time between having your car repaired and getting your car returned or buying another car.
A car is one of the most valuable assets that people possess and is central to leading their day-to-day lives. It makes sense to have it insured – especially today when it can be challenging to buy a new or used car due to the chip shortage affecting car manufacturers. Even if a car is under a manufacturer’s warranty, it is important for car owners to realize that this does not cover them for all types of breakdown and not for accidents or theft of the vehicle.
Companies such as CarGuard provide protection plans that cover the car owner in these situations and provide a replacement or rental vehicle so that the car owner is back on the road during the repair period. With clear, easy-to-understand vehicle protection plans, CarGuard’s protection covers the cost of repairs up to the agreed value of a vehicle and has plans that cover the owner for five years plus 100,000 miles.
CarGuard was launched in Kansas in 2011 and has since become a market leader in offering vehicle protection plans for both used cars and those still under a manufacturer’s warranty. They have an overriding commitment to customer service and satisfaction. They have a reputation for helping customers get their cars repaired and back on the road as quickly as possible.