Powersports Insurance vs. a Vehicle Service Contract: What's the Difference?

They Protect Against Two Very Different Types of Risk 

One of the most common misunderstandings among powersports owners is the difference between insurance and a Vehicle Service Contract (VSC). 

They're not interchangeable. 

Understanding the difference could become extremely important when your machine needs a repair. 

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Insurance: Think Accidents and Covered Losses 

Depending upon your policy, powersports insurance may provide protection involving accidents, collision damage, theft, liability and certain other covered losses. 

But what happens when there wasn't an accident?

Your side-by-side is running normally one day and develops a covered mechanical failure the next. 

That's where a Vehicle Service Contract can become important. 

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VSC: Think Mechanical and Electrical Breakdowns 

A Vehicle Service Contract can provide coverage for eligible repairs when covered mechanical or electrical components experience a breakdown, subject to the specific contract. 

Think about all the systems working together every time you start your machine. 

The engine has to run. The transmission has to transfer power. The cooling system has to control temperature. The electrical system has to communicate with multiple components. The drivetrain has to deliver that power to the wheels. 

When one of those systems experiences a covered failure, the repair bill may become your responsibility. 

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What About the Factory Warranty? 

A manufacturer's warranty is another layer of protection, but it has a defined duration and its own terms and limitations. 

The question owners should be asking isn't simply: 

"Does my machine have a warranty?" 

Ask: 

"How long am I planning to own this machine, and what protection will I have during that entire period?" 

If you're financing your machine for several years but the manufacturer's warranty ends earlier, that can potentially leave a period where you're still making payments without the same factory warranty protection. 

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Three Different Types of Protection 

A simple way to remember it is: 

Insurance → Accidents and other insured losses. 

Manufacturer's Warranty → Manufacturer-provided protection during its applicable warranty period.

Vehicle Service Contract → Protection against eligible mechanical and electrical breakdowns according to the contract you purchase. 

Understanding those differences can help you make a better decision about protecting your machine. 

Learn more about powersports protection at ConnexPowersports.com. 

Vehicle Service Contracts are not insurance or manufacturer's warranties. Coverage varies by product and is subject to all applicable contract terms, conditions, limitations and exclusions.

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