Tips For Buying A Vehicle Service Contract

By: Jeff Hatch

December 17, 2014

A vehicle service contract (VSC) is a smart investment. It can help cover the cost of unexpected repairs and keep your vehicle running at its best. But how do you know if the plan is right for you? Here are a few questions you can ask your VSC salesperson to make sure you know exactly what you’re getting.  

How Much Does The VSC Cost?
Obviously, money is one of the most important factors in the decision-making process. Is your vehicle worth the investment? If so, you’ll want more coverage, which means more money. However, the amount you pay now could add up to hundreds of dollars in savings later. 

What Does The VSC Cover?
Consider your driving habits and the make and model of your vehicle. For instance, if the company who manufactures your car is known for the quality of their interior components and you plan on keeping your vehicle in a garage, then you probably don’t need paint and fabric protection as part of your VSC. 

How Long Does The VSC Last?
Again, the way you drive has a big impact. If you plan on keeping the vehicle for several years or know you’ll be spending a lot of time on the road, then having a VSC makes a lot of sense. You’ll also want to know if your vehicle is currently under a manufacturer’s warranty since the VSC typically goes into effect after the manufacturer’s warranty expires.

Who Backs The VSC?
Make sure that the company behind your plan is reputable. Some good indicators to help determine credibility include an A.M. Best rating, which demonstrates financial strength and stability, and a Better Business Bureau rating, which assesses the company’s business practices. Also, look at how long the company has been in business and examine their background.

How Are Services And Claims Handled?
Find out if the company has a network of service providers. Are they in your area and readily available to work on your vehicle? Once this has been determined, inquire about claim submission and processing. Can you submit claims online? Does the company have a reliable customer service department to assist you? And do they provide fast and convenient service to help get you back on the road as soon as possible?

Don’t Be Afraid To Ask Any Other Questions You Might Have
You should never feel pressured into purchasing coverage that you don’t understand. If there is anything about your vehicle service contract that doesn’t make sense to you, don’t hesitate to ask. Always remember, it is the salesperson’s responsibility to assist you. If you don’t feel that you are getting the help you need to make a proper purchasing decision regarding your VSC, then you probably aren’t going to get the right help should something go wrong with your vehicle.

Got a question about one of our vehicle service contracts? Contact us online at or call at 800.833.8801. We’re happy to help.

Filed Under: A.M., automotive, Best, Better, Bureau, Business, claims, contract, service, vehicle, VSC, Warrantech

Using the Better Business Bureau to Purchase Your Vehicle Service Contract

By: Global Administrator

January 21, 2014

A vehicle service contract is a great way to cover service repairs and maintenance costs that inevitably come with ownership. It not only allows you to protect your investment and increase your car's value, it provides you with a reliable way to make payments that fit within your budget so that you can avoid having any large or unexpected bills.

But do you know what you're getting with your vehicle service contract? Does it meet your exact needs and match your particular driving habits? And, most importantly, who is the provider? The Better Business Bureau has compiled a list of helpful questions for you to consider before purchasing your vehicle service contract:

  • Who backs the service contract? It may be the manufacturer, dealer, or an independent company. Many service contracts sold by dealers are handled by independent companies called administrators. Administrators act as claims adjusters, authorizing the payment of claims to any dealers under the contract.
  • What's the cost of the auto service contract? Usually, the price of the service contract is based on the car make, model, condition (new or used), depth of coverage and length of contract. The cost of the service contract can range from several hundred dollars to more than $2,000. In addition, you may need to pay a deductible each time your car is serviced or repaired.
  • What is covered and not covered? Few vehicle service contracts cover all repairs. Watch out for absolute exclusions that deny coverage for any reasons. For instance, if the contract specifies that only "mechanical breakdowns" will be covered, problems caused by "normal wear and tear" may be excluded.
  • How are claims handled? When your car needs to be repaired or serviced, some service contracts permit you to choose among several service dealers or authorized repair centers. Others require the car owner to return the vehicle to the selling dealer for service. Find out if you will need prior authorization from the contract provider for any repair work or towing services. Ask how long it will take to obtain authorization and whether you can get authorization outside of normal business hours.
  • What are your responsibilities? Under the contract, you may have to follow all the manufacturer's recommendations for routine maintenance, such as oil and spark plug changes. Failure to do so could void the contract. To prove you have maintained the car properly, keep detailed records, including receipts. Find out if the contract prohibits you from taking the car to an independent station for routine maintenance or performing the work yourself. The contract may specify that the selling dealer is the only authorized facility for servicing the car.
  • What is the length of the service contract? If the service contract lasts longer than you expect to own the car, find out if it can be transferred when you sell the car, whether there's a fee, or if a shorter contract is available.

Make sure that you read and thoroughly understand the agreement before you sign, and check to see that all verbal promises have been included. It is also a good idea to contact the Better Business Bureau for a reliability report on the business offering you the contract. A quick visit to the BBB website can tell you instantly whether or not a business meets their Accreditation Standards for integrity, honesty, transparency and responsiveness.

Filed Under: Better, Bureau, Business, contract, service, Vehicle

Warrantech is Proud to Meet the Better Business Bureau’s Accreditation Standards

By: Global Administrator

August 23, 2013

With any purchase, one of the first things you should take into consideration is the reliability of the company you are doing business with. Are they honest and responsible? Do they stand by their products and services? Do they adhere to moral business practices? Or more simply put, are they accredited by the Better Business Bureau?

The Better Business Bureau (BBB) was created as a nonprofit organization to help prospective buyers make informed decisions. Their mission is to promote and foster the highest ethical relationship between businesses and the public through voluntary self-regulation, consumer and business education, and service excellence. The BBB’s standards have become so widely accepted as the benchmark for doing business, in fact, that seven out of 10 consumers have noted that they would be more likely to buy from a company that had been designated as a “BBB Accredited Business.”

Warrantech is proud to be one of the select companies that has been rated and accredited by the Better Business Bureau. With a strict review process, we understand that not every company is eligible for BBB accreditation. Their standards are diligently enforced and each business is subjected to constant monitoring to ensure that they are committed to providing the best service possible.

As part of Warrantech’s own ongoing commitment to service excellence, we have established an internal team to address any outstanding issues and meet with the BBB quarterly to review our accreditation standards. We work hard with them to resolve any outstanding issues and, per BBB guidelines, strive to contribute to a respectful marketplace with complete transparency and more satisfied customers.

Standards of Better Business Bureau Accreditation

To be accredited by the Better Business Bureau, a business or organization affirms that it meets and will abide by the following standards:

  1. Build Trust — Establish and maintain a positive track record in the marketplace.
  2. Advertise Honestly — Adhere to established standards of advertising and selling.
  3. Tell the Truth — Honestly represent products and services, including clear and adequate disclosures of all material terms.
  4. Be Transparent — Openly identify the nature, location, and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.
  5. Honor Promises — Abide by all written agreements and verbal representations.
  6. Be Responsive — Address marketplace disputes quickly, professionally, and in good faith.
  7. Safeguard Privacy — Protect any data collected against mishandling and fraud, collect personal information only as needed, and respect the preferences of customers regarding the use of their information.
  8. Embody Integrity — Approach all business dealings, marketplace transactions and commitments with integrity.

To learn more about Warrantech and Better Business Bureau accreditation standards, visit

Filed Under: Better, Bureau, Business, Warrantech