The speedometer stopped working, and the engine light turned on. I suspect the VSS is bad.
Depending on the code retrieved from the computer, I would assume your assumption is correct. Replacement of the sensor is not very difficult.
The sensor or wiring might be damaged. Replacing the sensor may or may not be necessary. An oscilloscope or scan tool can assist in diagnosis. I would recommend having a qualified technician, such as one from YourMechanic, determine what repairs are needed. If necessary, they can replace the speed sensor for you.
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