There is significant confusion out there about the difference between vehicle service contracts and auto warranties. The only similarity between the two contracts is that they both cover you from unforeseen mechanical breakdowns.
Most often, you can buy the vehicle service contract at the same time that you buy the car. In fact, it is practically standard that a customer is offered a service contract along with the car.
A service contract will not necessarily cover all forms of potential damage to your vehicle. In fact, it usually won’t. If your car needs repairs that are not covered by the contract, you’ll be paying out of pocket unless the cost is covered by your car insurance.