F.A.Q.
Whats the Difference Between Extended Vehicle Warranty and Vehicle Service Contracts?
Extended Vehicle Warranties are often offered by the manufacturer and provide coverage after the original warranty expires. A Vehicle Service Contract, on the other hand, is a third-party agreement that can be customized and offers protection against unexpected repair costs, often for an extended period beyond the manufacturer’s warranty.
Do I really need a vehicle service contract?
If you want protection against expensive car repairs and prefer peace of mind, a vehicle service contract can be a wise investment. This is especially true if you have an older car that is out of its warranty period or if your car is prone to certain types of failures.
Can I take my vehicle anywhere to get repaired, or do I have limited choices?
With most service contracts, you are free to take your vehicle to any licensed repair shop or ASE-certified facility. However, certain plans may require you to use a network of approved repair facilities. Be sure to check the terms of your contract for specific details on this.
What if my car repair facility won’t take our plan?
If your preferred repair facility is unwilling to accept the service plan, you can contact the service provider directly for alternative solutions. Most contracts provide a customer support line to assist with finding a compatible service provider.
How are repair claims paid?
Repair claims are typically paid directly to the repair facility, either upfront or after approval from the service contract provider. Depending on the terms of your plan, you may be required to pay out-of-pocket initially and then be reimbursed, or the repair shop may bill the provider directly.
Why buy a vehicle service contract now? Even if I still have a manufacturer warranty?
Even if your vehicle is still under warranty, a service contract offers an additional layer of protection that covers things not included in the manufacturer’s warranty. These can include coverage for wear-and-tear repairs, roadside assistance, and extended coverage for electronics or high-tech systems.
What if I want to cancel my contract?
Most service contracts allow for cancellation, but the specifics can vary. Some contracts offer a full refund if canceled within the first 30 days, while others may have pro-rated refund terms. Always read the fine print or contact customer support for guidance on your specific plan.
Is my contract transferable?
Many service contracts are transferable to a new owner if you sell your vehicle. This can be a selling point for potential buyers, as it adds value to the car. However, you’ll need to check with your provider about the specific terms of transferring your contract to another person.