Vehicle repair costs can add up quickly. Once the manufacturer’s warranty expires on your vehicle, repair costs are no longer covered and start coming out of your pocket. This is where Vehicle Service Contracts step in. These extended warranty contracts can be purchased at any time and provide multiple coverage options to restore your financial security blanket. Your Vehicle Service Contract is essentially an agreement insuring your vehicle against unexpected repairs and maintenance issues. Similar to initial manufacturer warranties, Extended Vehicle Contracts cover your car or truck for a specific number of miles, years, or a combination of the two. Powertrain coverage and “bumper-to-bumper” warranties are common types of coverage, but some plans may provide bonus options like roadside assistance, oil changes, or towing service. Vehicle Service Contracts can potentially save you thousands once your initial vehicle warranty expires.
When considering a Vehicle Service Contract, make sure you are not “doubling up.” Manufacturer warranties vary from brand to brand, so ensure you understand what is already covered before choosing your extended Vehicle Service Contract. It is also important to understand the limitations of your extended warranty. Some Vehicle Service Contracts require you to use specific repair locations to be covered by the contract. Paying attention to the payment terms up-front can save you a headache at the repair shop. Do you have to pay a deductible? Do you pay out of pocket up front and submit for reimbursement? If so, how long does the reimbursement process take before you receive the credit? All of these factors should be considered to help you choose the best Vehicle Service Contract for your needs.