United Car Care Explains: What is a Vehicle Service Contract and Why Do You Need It?

Car Care

Vehicle service contract coverage is meant to fill the gap or take over when your existing warranty expires. For full peace of mind, purchasing a vehicle service contract can help you avoid unexpected and costly repairs. In this article United Car Care, a leading vehicle service contract provider covers the basics of what a vehicle service contract is and why you need it even if you have a warranty.

Vehicle service contracts are offered by warranty companies as an after-market form of coverage for specific types of vehicle repairs. Service contracts are agreements to pay for certain repairs or services that are not covered by a manufacturer’s warranty or are needed after a warranty has expired. Vehicle service contracts can be purchased by owners at any time and are a separate expense from the original purchase price of a vehicle.

Because they are often not provided by manufacturers, vehicle service contracts are typically provided by independent companies. Accordingly, you should always research the quality and dependability of a service contract provider. Look for a company with a strong track record for stability, reliability, and customer service.

Every vehicle service contract covers certain repairs according to its terms. Some contracts cover wear and tear in addition to breakdowns and part or system failures. Investigate the level and types of coverage provided by various plans when deciding on purchasing a service contract. Some contracts cover powertrain repairs only, while others include other components or systems.

The cost of vehicle service contracts will vary according to the type, age, and condition of the vehicle to be covered, the length of the contract, and the level of coverage provided. You should always consider the cost of prospective coverage, any applicable deductibles, and whether a contract is transferrable if you sell the vehicle when evaluating the total cost of the contract.

The claims process can also vary widely among different vehicle service contracts. Some contracts provide you the ability to choose your preferred repair facility, while others restrict repairs to listed and pre-approved companies. Some contracts require you to pay for repairs in advance and then seek reimbursement from the contract provider, while others pay repair providers directly. You should be sure that you understand and are comfortable with the claims process for a proposed vehicle service contract.

Some owners find that vehicle service contracts can be especially valuable. Someone who plans on keeping a vehicle for an extended period and typically puts an above-average amount of miles on their vehicle is likely to receive benefits from a service contract. Owners of vehicles with high-tech components should also investigate coverage for expensive components like navigation systems and parking assist technology.

Vehicle service contracts can provide peace of mind for drivers who are budget conscious and want to avoid the stress of unexpected repair bills. Your dealer is a great resource for vehicle service contract information when you are considering a new or used vehicle purchase.

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