At some point in their car ownership journey, including the time before the day of purchase, car owners have to deal with the question of whether or not to get a vehicle service contract—a paid plan that’s designed to help pay for repair costs after the manufacturer’s warranty has run out (after a certain period of time or a certain number of miles).
Choosing not to get one is, of course, an option that has its own merits, provided that you have the funds ready when repairs are needed, or you change cars every two or three years, in which case getting a vehicle service contract is out of the question since you will still be covered by manufacturer’s warranty by the time you’re ready to trade your car in for a new model.
Otherwise, it’s smart to get a vehicle service contract so you have a huge, sturdy safety net when repairs and maintenance costs are no longer covered by the manufacturer’s warranty.
Once you’ve made the smart decision to get post-warranty coverage, your next task then is to make sure you make the smart choices in buying a vehicle service contract.
Here are 4 things you need to consider before investing in a vehicle service contract:
1. Who backs the product?
Make sure your vehicle service contract is backed by the automaker or an A-rated insurance carrier. Also make sure to purchase your extended warranty from a full-service, nationwide product provider.
2. Are you getting the best price?
Do your research prior to finalizing your extended warranty purchase. Shop around for a more manageable price for a good coverage, see who’s willing to negotiate.
Should you get an extended warranty when you purchase your vehicle? You don’t really need to, since you will be covered by the manufacturer’s warranty—unless you’ve done some advanced shopping and are in a good position to negotiate for a lower price.
3. What’s the coverage?
No extended warranty is all-encompassing. Most extended warranties exclude many wear-and-tear components.
And since many extended warranties are offered in coverage tiers (e.g., silver, gold, and platinum) at different prices and with different levels of coverage, you would be wise to study the fine print to know what’s covered and what isn’t.
What about who will front the cost for the repair bill? Are the repairs fully covered, or will you have to pay a small deductible (the amount that you yourself will pay toward an insured loss)? Or do you have to pay out of pocket for the repairs and get reimbursed later?
What about repair shops that you can take the vehicle to? Note that some third-party car warranty providers specify in the contract which repair shops should work on your vehicle.
4. What are you learning from your previous repair costs?
Consider whether other cars you’ve previously owned had problems that would have been covered by a warranty. What situations are specific to your car repair needs? Harsh winters where you live, perhaps? That’s a situation that a road-hazard tire warranty would be well suited for.
What about previous expenses on out-of-warranty repairs? How do they stack up against the cost of the warranty? Granted you won’t have to spend the same amount on repairs for two vehicles; however, if purchase your new vehicle from the same maker, you’ll have a pretty good idea of what to expect down the line.
If your vehicle will be out of warranty soon, start looking for a vehicle service contract that address all your needs.
At EverCare, you will always get superior protection products, robust benefits, and innovative technology that guarantee satisfaction and peace of mind.
Contact us today for a consultation.