When you bought a new car, there is a big chance that you will be offered a service contract. But what exactly is a service contract and how it differs from a warranty? Service contracts and warranties are almost the same as both of them serve the element of maintenance or repair for a specific period. However, the primary difference is that warranty comes with the new car and is included in the purchase price, and the service contract would be an additional cost.
Service contracts, also known as extended warranties, can range incredibly and may not be worth the extra money. Some of it duplicates what is covered in a warranty. On the other hand, having service contract may lessen financial stress for those who own models from uncertain brands and bring extra precautions to take proper care, repair and maintenance for their car.
So, what’s the real catch here? Do you need to purchase a service contract for your new car? Answer is, not necessarily. You are generally not required to purchase a service contract when you buy a car. As to whether service contract or an extended warranty is a good idea or not, the answer is that it will depend on what is the coverage, at what price, as well as your risk tolerance. To help you decide, here are the things you should consider whether to buy or not to buy a service contract:
Are the people who handle the repairs trustworthy and have a good reputation?
- Make sure that you have contact information of the company so if you have questions or problems, you can reach out to them easily.
- Take time to study the company name online and look for review, comments, or complaints.
- Contact your state consumer protection office to check if they have received any complaints regarding this company.
You need to know as well that if you buy a service contract from a company that goes out of business and cannot even honor claims, there is little that you can do.
What does the service contract cover and provide?
- Make sure to understand what is covered and what is not.
- Take note how long does the service contract will last.
- Know if they provide coverage beyond the warranty.
- Ask if there will be deductibles, shipping costs, service fees or reimbursement limits.
- Look out for clauses that deny coverage.
- See if accidental damage is included.
- Ask if there will be transfer fees in case you decide to sell the product.
Know the Product
- Review and check websites that give information on possible product repairs and the costs associated with them.
- Know the potential repair cost.
- Research if you will be buying the product from a reliable and has a good reputation company.
In overall, the decision to purchase a service contract is largely dependent on your operating budget and needs. As a car owner it is your responsibility to perform your due diligence to ensure the best results. If you need an auto glass, you don’t have to worry because A + Plus Auto Glass is here. A + Plus Auto Glass is the preferred auto glass repair by ALL major insurance companies.