The Do’s and Don’ts of Purchasing a Vehicle Service Contract

The Do’s and Don’ts of Purchasing a Vehicle Service Contract

One of the most universal lessons that parents teach their children is the difference between right and wrong. While it is usually a practice of morality, knowing the difference between right and wrong can steer you down other paths as well. But unfortunately, not every lesson comes with your parents’ help. This is precisely why we wrote this article about the dos and don’ts of buying a vehicle service contract.

We have discussed the multiple reasons why every driver should protect their car with a vehicle service contract and what exactly they are, but we have never gone too far in-depth when it comes to the dos and don’ts of buying one. But after hearing customer reports on a few unnamed companies and their horrendous experiences with them, we felt it was necessary.

The Do’s and Don’ts of Purchasing a Vehicle Service Contract

DO:

Research the Company: Proper research is a must. Some of these companies are well-established and are well-reviewed, while others are barely able to keep their doors open due to countless complaints and utterly useless coverage plans.

Ask for Discounts: By protecting your car, you are already taking a step in the right direction towards saving money, but why not save a little more? Many discounts are available for drivers and you can read about a few of them here.

Read the Fine Print: Oftentimes people will purchase a policy and not have any idea what they are getting in to. We suggest not only going over your policy very closely and it wouldn’t hurt to take it to a trusted mechanic to look over, just in case.

DON’T:

Choose a Fly-By-Night Company: In the extended coverage industry there is a lot of competition, which can sometimes be very good for customers because it creates a buyer’s marketplace. However, there are countless fly-by-night companies out there that promise the world and cannot deliver. Avoid them at all costs.

Fall for “Too Good to Be True” Pricing: The famous phrase “You get what you pay for” could never ring truer than when it comes to these contracts. If a company is quoting you a price that is basement-low, chances are it won’t cover much, even if the company says so. If the price seems too good to be true, it is probably because it is. Affordable coverage is attainable, but cheap coverage should be avoided.

Roll it into Your Car Payments: Lots of drivers choose to purchase contracts at their local dealership when they buy their new vehicle. While you will find it cheaper online, if you choose the dealer route, pay for it separately. When you finance your vehicle the dealer will charge you interest, by adding the cost of your policy, you end up having to pay more interest in the long-run.

Get Coverage with Pre-Existing Conditions: A lot of people think of an auto warranty or Endurance extended protection as a cheap and easy way to get their pre-existing repairs paid for. Unfortunately, companies will not cover anything that is wrong with the vehicle prior to coverage. It is really a waste of your money to try to get it by these companies, so our suggestion is to not even try it.

We hope that we were able to clear up a few things for you and that the extended vehicle protection industry no longer has a gray area for you to fall in. Don’t wait until it is too late, the sooner you protect your car, the happier you’ll be when it ends up in the shop!

 

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*A Vehicle Service Contract (VSC) is often referred to as an “extended warranty”, but is not a warranty.  A VSC does, however, provide repair coverage for your vehicle after the manufacturer’s warranty expires. A VSC is a contract between you and a VSC provider or administrator that states what is a covered repair and what is not. Endurance is an administrator of VSCs and does not sell warranties.*

A Vehicle Service Contract (VSC) is often referred to as an “auto warranty” or an “extended car warranty,” but it is not a warranty. A VSC does, however, provide repair coverage for your vehicle after the manufacturer’s car warranty expires. A VSC is a contract between you and a VSC provider or administrator that states what is a covered repair and what is not. Not all vehicles qualify for coverage; Endurance does not offer VSCs in California.