When you drive a brand-new car off the lot, the last thing on your mind is breakdowns or costly repairs. After all, new vehicles are protected by factory warranties and should be in perfect condition, right? While that’s generally true, the question more drivers are asking in 2025 is: should I get a vehicle service contract even if I just bought a new car? The answer depends on your expectations, driving habits, how long you plan to keep the car, and your comfort with risk. With repair costs skyrocketing, vehicle technology becoming increasingly complex, and manufacturer warranties often falling short in duration or scope, more consumers are realizing that extended warranty programs for cars aren’t just for older or used vehicles. They’re a proactive way to control future expenses and lock in long-term peace of mind.

Let’s start with the basics. A vehicle service contract, often called an extended warranty, is a protection plan that kicks in when your original manufacturer’s warranty expires. While the factory warranty may last three to five years, depending on the automaker, many drivers plan to keep their vehicles far beyond that. This creates a coverage gap where expensive issues could arise, leaving you responsible for all repair costs out of pocket. An auto warranty extension ensures you’re still protected even after the factory plan runs out, which is critical for owners who want to avoid financial surprises in years four, five, and beyond. Instead of reacting to problems later, smart car owners are securing coverage now—when it’s cheaper and their car is in peak condition.

It’s also important to recognize that car warranty insurance isn’t just about engine or transmission repairs. In 2025, new vehicles are loaded with sensitive electronics, infotainment systems, cameras, sensors, and autonomous driving features. These components are just as likely to fail—and often more expensive to replace—than traditional mechanical parts. With the average cost of repairs increasing year over year, one unexpected failure can be financially devastating. Whether it’s a digital dashboard failure or a faulty adaptive cruise control sensor, the repair bill can easily surpass $1,000. Vehicle service contracts cover these modern systems under exclusionary (bumper-to-bumper) plans, giving drivers true full-vehicle protection that factory warranties sometimes fail to provide.

Another advantage of purchasing a vehicle protection plan early in your car’s life is cost savings. Extended warranty programs for cars are generally less expensive when purchased on a new or nearly new vehicle. Because the risk of failure is lower, auto warranty companies can offer better rates and more comprehensive terms. If you wait until your factory warranty is about to expire, the cost of coverage could be significantly higher—or you may be denied entirely due to mileage or wear-and-tear exclusions. Getting a vehicle service contract while your car is still considered “new” locks in lower rates and ensures access to a broader selection of plan types and coverage tiers.

Additionally, many vehicle service contracts come with value-added benefits that enhance the overall ownership experience. These may include 24/7 roadside assistance, towing coverage, rental car reimbursement, and trip interruption protection. These benefits go beyond simple repair coverage and provide day-to-day support that’s especially useful for people who travel often or rely heavily on their vehicle. In essence, an auto warranty extension transforms your driving experience into a worry-free journey, knowing that help is just a phone call away.

There’s also the issue of complexity and labor costs. Today’s vehicles require highly trained technicians and specialized diagnostic equipment to perform even basic repairs. A single malfunctioning component in a hybrid powertrain or EV battery system could cost thousands of dollars. While these failures may not occur in the first year or two of ownership, they become increasingly likely as your car ages—even if it’s been well maintained. A car warranty insurance plan that covers complex systems can save you from unexpected breakdowns and the stress of figuring out how to afford major repairs when they arise.

Another consideration is your long-term ownership plan. If you lease vehicles or trade them in every few years, an extended warranty might not be necessary. But if you plan to own your vehicle beyond the standard 36,000-mile or 3-year factory warranty, the math starts to make sense. Without a vehicle service contract, you’ll be solely responsible for repair costs after the original warranty expires. For many drivers, especially those who purchased a new car as a long-term investment, paying a little more upfront for an extended warranty now means saving significantly more in the years to come.

It’s also worth noting that service contracts are transferable in many cases. This means if you decide to sell your car privately before the contract ends, the new buyer can take advantage of the remaining coverage. This adds resale value and makes your vehicle more attractive to potential buyers. It shows that the car was protected and maintained under a structured plan, increasing buyer confidence. Auto warranty companies that offer transferable contracts allow you to protect your investment beyond just repairs—they help you maximize the value of your asset.

You may be wondering if it makes sense to “double up” coverage. After all, your factory warranty is already active, so why purchase an auto extended car warranty now? The key reason is that service contracts often allow you to “stack” coverage, meaning your extended warranty doesn’t start immediately—it begins once your factory warranty ends. By purchasing the extended coverage now, you lock in lower pricing and ensure continuous protection without a lapse. There’s no overlap in service, just an intelligent transition from one phase of coverage to the next.

Of course, not all vehicle service contracts are created equal. It’s important to compare providers and plans carefully. Look for transparency in terms, U.S.-based customer service, clear lists of covered and excluded items, and options to customize your plan to fit your driving habits. Beware of companies that use aggressive sales tactics or fail to provide written documentation. Trusted names like Empire Auto Protect stand out by offering real protection with real support—not vague promises. They provide clear coverage terms, responsive service, and fast claims processing, making them a top choice among U.S. drivers seeking long-term vehicle protection.

Choosing the right plan depends on your priorities. If you’re primarily concerned about major engine or transmission failures, a powertrain plan may be sufficient. If you want complete coverage, including electrical, climate control, navigation, and more, a bumper-to-bumper (exclusionary) plan is the way to go. Whatever your needs, make sure the plan you choose fits your budget and offers the right balance between coverage and cost. Keep an eye out for deductibles, limitations on repair facilities, and whether labor costs are included. These details matter and can affect your total out-of-pocket expenses in the event of a claim.

Lastly, it’s worth considering the emotional side of ownership. Driving should be enjoyable, not stressful. Worrying about every little sound or warning light can take away from the freedom and independence that owning a vehicle provides. A vehicle service contract offers peace of mind that lets you focus on the road ahead, knowing that if something goes wrong, you’re protected. It’s not just financial insurance—it’s freedom from uncertainty.

In 2025, with repair costs at an all-time high and vehicle complexity only increasing, saying yes to a vehicle service contract for your new car isn’t overkill—it’s just smart. With the right provider and the right plan, you’re setting yourself up for worry-free driving, improved resale value, and true financial protection for years to come.

Call Empire Auto Protect at 1-888-345-0084 to learn more about vehicle service contracts and how you can lock in the right plan for your new car today. Our advisors will walk you through every option and help you build a customized policy that fits your vehicle and your lifestyle.