Tips For Choosing The Vehicle Service Contract That’s Right For You

By: Jeff Hatch

April 11, 2018

So you are finally purchasing that vehicle you’ve always wanted and are overcome with an enormous sense of bliss. Your first thought is to fill out the paperwork as fast as possible so that you can grab the keys, hit the road and show your new car off to all your friends. However, as thrilling as ownership can be, you still have some important decisions to make. 

Do you have enough money to take care of it? What happens if something goes wrong? This is a major purchase and it would be a huge mistake for you to get caught up in the excitement without taking some time to think about what you will do once the inevitable happens and your car needs service. 

That’s where a vehicle service contract (VSC) can help – by alleviating the maintenance and repair costs that come with owning a car, truck or SUV. So which VSC do you choose? Here are a few things to consider, so that you can take care of business and get back to enjoying your new ride.   

How Long Do You Plan On Owning Your Vehicle?

If you only intend on having the car for a few years, a long-term contract probably isn’t on your radar. However, if you plan on driving your vehicle for a long time then you definitely want a VSC. It’s a great complement to an older vehicle that’s no longer under warranty. 

What Does The Plan Include?

Not all people share the same driving habits, so you’ll want a plan that is tailored to the way you drive and the type of vehicle you have. Make sure you know what the plan covers, and be sure to consider the number of miles and length of coverage. Also be aware of the deductible to determine if it fits within your budget.  

Are You Focusing Too Much On Price?

“You get what you pay for” is a good rule of thumb, and a cheaper contract usually comes with a higher deductible. The price might look good on paper, but if the VSC doesn’t provide the coverage that you need, then it’s going to be worthless to you. 

Have You Read The Contract Carefully?

Don’t make assumptions. One of the biggest mistakes customers make is signing a service contract without getting the specific coverage they want. And the last place you want to be when you find out that you’re not covered for benefits such as roadside assistance is when your car breaks down and leaves you stranded in the middle of nowhere. 

Are You Rushing Through The Process?

Take your time. See something in the contract that you don’t understand? Get clarification and make sure that you are comfortable with what you’re signing. 

Did You Get All Of Your Questions Answered?

Be proactive. You definitely don’t want to be in a service center at a later date asking defensive questions like, “What do you mean that’s not covered?” Find out now. 

Have questions about one of our vehicle service contracts? 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: contract, customer, maintenance, plan, repair, service, tips, vehicle, VSC

Vehicle Service Contracts Grow in Popularity

By: Global Administrator

November 21, 2013

More than ever before, car buyers are purchasing vehicle service contracts to help prepare for the unexpected and save money on expensive repairs.

The Service Contract Industry Council (SCIC) estimates that consumers bought more than 10 million vehicle service contracts in 2012 for both new and used vehicles. Those service contracts covered 95 percent of annual claims filed, including repairs necessary due to normal wear and tear, providing coverage above and beyond a traditional manufacturer’s warranty.

An increasingly popular choice due to the rise in car repair costs, the SCIC points out that vehicle service contracts offer value and predictability by protecting the vehicle well after the manufacturer’s warranty expires. A vehicle service contract also offers additional coverage that isn’t offered in the original equipment manufacturer’s warranty.

“The new technologies and complex components in today’s motor vehicles put consumers at greater risk for big out-of-pocket repair costs than ever before,” said Timothy Meenan, SCIC executive director. “Service contracts help consumers better deal with the unexpected, so they don’t have to worry when expensive unforeseen repairs are needed.”

The SCIC adds that today’s vehicles are made up of more than 10,000 components, yet the standard powertrain warranty covers only a fraction of them. The average new car has six to 20 computers that control everything from fuel injection and antilock brakes to airbag deployment. Those systems can be expensive to repair, due to both the high cost of parts and labor costs that can run as high as $250 an hour for specialized repairs on luxury vehicles.

For more consumer tips and information regarding extended warranties and vehicle service contracts, be sure to visit www.go-scic.com.

Additional Benefits of Having a Vehicle Service Contract

  • A vehicle service contract covers systems not typically included in the manufacturer’s powertrain warranty, such as air conditioning, heating, power windows, electronics and navigation
  • Most service plans pay for the cost of a rental car while your car is in the shop—standard manufacturer’s warranties do not
  • When selling a vehicle, service contracts can be transferred to a new owner, which increases its value
  • Access to certified auto technicians
  • 24/7 customer support and technical assistance

Filed Under: consumer, contract, service, tips, Vehicle