What Do Service Providers Say About Extended Service Plans?

By: Jeff Hatch

June 01, 2018

Regular maintenance can help keep your appliances running at their very best. But it’s just part of the equation. What do you do when the inevitable happens and the refrigerator or HVAC system that you depend on every day eventually breaks down? As a backup plan, numerous service technicians suggest that you look into an extended service plan (ESP) as a way of saving time and money on repairs – and making sure that your home appliances not only run right, but last.
 
So when is an ESP worth it? It depends on how much your products cost and what their value is to you. A good rule of thumb that a lot of service providers abide by is that an extended service plan is definitely worth the money if you’re purchasing an appliance that costs more than $500.
 
For higher-end items it makes the most sense. You should view these purchases not as products, but as investments that you plan on protecting to the best of your ability.
 
Another consideration is the manufacturer’s warranty. You might already be covered, but for how long? Most OEM warranties last anywhere from three months to a year when the appliance is still new. However, a service plan extends your coverage by offering additional protection when your item is older and you’re more likely to need it.
 
That brings us to product reliability. Several of our service providers have pointed out the intricacies of today’s appliances, which rely more on computer boards and electronics, and are built differently than they were some 20 to 25 years ago. The need for extended service plans weren’t as great then, but when you consider that today’s parts can run as high as $300 an ESP makes a lot more sense.
 
Also keep in mind that the average repair for a washing machine can run anywhere from $150 to $500 and eat through your budget pretty quick. For an oven/range, it’s even worse and could end up costing you between $400 and $700.
 
A service plan is designed to protect you from absorbing those high repair costs. And most repairmen will tell you that one service call alone can more than pay for the price of having an extended service plan, making an ESP worth it to you.  
 
Have questions about one of our extended service plans? Don’t hesitate to contact us. Visit warrantech.com, call 800.833.8801 or send us an email at
info@warrantech.com. We’re happy to help!

Filed Under: appliances, cost, maintenance, plans, repair, service, Warrantech

The 3 C’s: Tips for Purchasing a Vehicle Service Contract

By: Jeff Hatch

January 04, 2018

Purchasing a vehicle service contract can be a confusing and intimidating process. There’s a lot to consider and, in some cases, a lot of money involved. That’s why we’re here to help take the guesswork out of the decision-making process and make sure you get exactly what you’re looking for. It’s easy. All you have to do is remember the three C’s of service contracts – cost, coverage and commitment.


Cost

First, you’ll want to determine if the car is worth the added investment. Do you plan on putting a lot of miles on it? Does the particular make and model have a history of needing frequent repairs? 

You’ll also want to keep in mind that just because a plan is cheaper, that doesn’t mean that it’s better. In some cases, a company might sell you a less expensive plan that doesn’t provide the same level of coverage. Look for a good service contract that can offer you exceptional long-term savings and value. A few things to consider in association with the cost of your plan include: 

24-hour technical assistance and access to qualified service professionals 

Value-added extras such as discounts on hotels and restaurants, rental car benefits, locksmith services and 24-hour roadside assistance 

Paying in advance could save you money later at the time of service 

In some cases, a service plan can pay for itself in just one repair


Coverage

Next, consider the vehicle type and the best type of coverage for it. For instance, if you have a vehicle that you intend to keep for long time, you’ll want a plan that takes high mileage into account. At the opposite end of that spectrum, if you simply want to protect your vehicle’s appearance, a supplementary protection plan is probably in your best interest. Warrantech has several options you can choose from that encompass a wide variety of services:

CustomEdge Plus – Provides you with the flexibility to pick your plan, length of coverage, miles of coverage and deductible

RepairMaster Service Drive – Complete coverage for cars, trucks and SUVs

MileEdge – Perfect for unpredictable, high-mileage vehicles, this plan covers costs associated with an automobile breakdown

SecureEdge – Covers costs to repair or replace any breakdown of parts, except engine, turbocharger/supercharger, transmission, transfer case and drive axle components

OwnerEdge – Offers powertrain vehicle protection

PowerEdge – For motorcycles, scooters, ATVs, snowmobiles and other recreational vehicles 

CampersEdge – For motorhomes, travel trailers, fifth wheels, pop-ups and slide-ins


Commitment

Finally, keep in mind that as the owner of the service contract, you are responsible for fulfilling the terms and conditions outlined within. As such, you’ll want to: 

Read the contract paperwork carefully and make sure you understand the coverages and exclusions

Follow all the manufacturer’s recommendations for routine maintenance. Failure to comply with these requirements could void the contract

Register your plan online if the provider has a website page that allows you to do so

Keep your contract paperwork, receipts, maintenance reports and contact numbers in a safe place where you can easily access them. This will make ownership and claim submission simple and easy

To learn more about our vehicle service contracts, visit warrantech.com 

Filed Under: commitment, contract, cost, coverage, service, vehicle, Warrantech

When Is An Extended Service Plan Worth The Investment?

By: Jeff Hatch

December 09, 2015

You did it. You finally worked up the gumption to buy the one product you’ve debated purchasing for months. Whether it is a brand new car, technologically advanced appliance or the latest electronic gadget, you’ve made it through second guesses, financial calculations and a lengthy checkout line to finally make your purchase. Relieved and excited, you smile as the sales associate rings up your coveted item. 

As you daydream about how wonderful life will be with your new “toy,” you realize the sales associate asked you a question. You beg their pardon.

“I asked what sort of protection plan you’d like. We have a number of extended warranty options,” the associate replies.

Your smile fades. Apparently the decision making isn’t quite over after all.

*****

Does this sound familiar? For many people, the question of whether or not to purchase an extended warranty (more appropriately referred to as an extended service plan, or ESP)* is a tough one, and may not be a decision they are prepared to make. When is such a purchase advisable? Will it save money, or just add cost to a purchase? The answers to these questions depend upon a number of factors specific to each purchase. Consider the following before you reach the point-of-sale in the future, and you may save time and avoid stress:

*NOTE: While many store associates and consumers consider the purchase to be an extended warranty, this is often not the case. Many extended plans are not truly adding on to the original manufacturer’s warranty, but rather, extend the post-warranty service options and are therefore more appropriately referred to as an extended service plan, or ESP.

What is the product and who produced it?

Reputation is always an important consideration when attempting to predict the longevity of a product. Some types of items are statistically more likely than others to need repairs in their first few years of use. According to Consumer Reports, for example, computers, self-powered lawn mowers and certain refrigerator designs top the list of items most likely to fail. 

It is important, also, to consider whether the product you’re buying incorporates cutting-edge technology or is a first-generation product. With less of these products existing in the marketplace, there is a higher likelihood of glitches or problems that may not have been discovered during testing. Also, factor in what company created the product you are purchasing. Do they have a history of releasing products before the “bugs” have been worked out?

How much does the product cost and how tough would it be to replace?

If purchasing an expensive item, it is important to consider how much repairs or replacement would cost versus the cost of an ESP. If the item is of critical importance to you, such as a computer used to make a living, an expensive part failure could be very detrimental. 

“For many people, peace of mind is the greatest benefit of an extended service plan,” according to Sean Stapleton, CEO of Warrantech. “They want to know that if their product should cease to function correctly, they will be covered, especially if replacement would be difficult to finance.”

Who is this product for and how will they handle it?

It is important to consider who will be using the product you’re purchasing, the environment in which it will reside, and the frequency it will be used. Are you buying a product for a young person? Is the item for use while on-the-go? Will you use the product routinely? If the answer to any of these questions is “yes,” you may want the confidence and protection that the product will last. Knowing your end user and end-use environment is important when deciding whether to invest in an extended service plan. Always review plan information carefully, ensuring you know exactly what is and isn’t covered.

The next time you make a significant investment in a product, ask yourself these three questions and be prepared once you get to the point-of-purchase.

Filed Under: cost, extended, plan, product, purchase, replace, service, Warrantech