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Businessman signing paperwork with mechanic

Mistakes to Avoid When Choosing a Vehicle Service Contract

Any vehicle that you purchase will come with a manufacturer’s warranty that will take care of certain problems. However, these warranties only last for so long. If you have any trouble with the vehicle after the warranty expires, you’ll be responsible to pay for the repairs. An extended vehicle service contract will allow you to extend the period in which you can receive assistance in paying for these repairs.

Buying the right extended service contract can be a big help down the road but the wrong one could result in wasted money. Here are some mistakes to avoid when choosing coverage from the best vehicle service contract companies.

The Wrong Coverage Type

There are various types of vehicle service contracts that cover a variety of problems. The least expensive coverage plans typically only cover mechanical failures. This means that any problems that might arise due to high mileage will not be covered, the top reason why claims are rejected.

As your vehicle accumulates more mileage, you will be more likely to need repairs due to parts extending beyond their lifespan rather than mechanical failures. To avoid any potential claim denials, you should fully understand what is in the contract that you’re considering and the difference between a mechanical failure and a worn part due to high mileage.

Basing Decision on Price

A vehicle is an expensive purchase so many people end up buying the cheapest vehicle service contract available because they wish to limit their spending. The problem with this plan is that, like most other aspects of life, you get what you pay for. Cheaper vehicle service contracts will cover fewer problems than a more expensive contract.

Rather than concerning yourself with the price of the contract, you should examine what the contract covers. This will ensure that you are covered when a problem occurs months or years down the road.

Mechanic handing paperwork to woman

Pre-Existing Conditions

When you purchase a vehicle, you should always have a qualified mechanic look it over before completing the purchase. There are those that will buy a car with a pre-existing condition and then file a claim to have a problem, such as broken air conditioning or slipping transmission, fixed by the vehicle service contract company. Understanding that there are those that will attempt to do this, most service contract companies have a short period of time after the purchase in which you cannot file a claim.

Attempting to do this will result in a claim denial and you having to spend thousands of dollars on the repair yourself. You’re much better off have the car inspected before purchasing to ensure that there are no current problems that might arise in the near future.

Forced into Extended Service Contract

Those with bad credit already have a more difficult time purchasing a car than those with good credit. Some car dealers will attempt to take advantage of this situation by claiming that the buyer must purchase an extended service contract from them in order to receive a loan.

This is a scam that could result in the buyer purchasing a service contract that costs more than other companies and may not cover future potential problems. You should be aware of this potential claim and know that you always have your choice of companies from which to buy your vehicle service contract.

An extended service contract can be a tremendous asset when you’re in need of repairs. Avoiding these mistakes will ensure that you purchase the right contract from the best vehicle service contract companies so you don’t run into any unfortunate situations later on. Contact Freedom Warranty if you’re in need of a vehicle service contract.

Businessman holding umbrella over car cutout

Car Warranty vs Service Plan: What to Choose?

Buying a new car can be a great experience. If you’ve been suffering with an old car with reliability issues, you’ll no longer have to worry about your car breaking down when you least expect it. At least, you shouldn’t. The truth is, however, even fairly new cars can have trouble, which is why new cars come with warranties, and dealerships of all kinds offer plans to protect your car in case any problems might develop.

Usually, the extra coverage that’s available is in the form of either a warranty or a service plan. You want to choose the best extended vehicle service protection, but you might not know which type is the best for you. Here are some things to think about when deciding between a warranty and a service plan.

Service Plans

As the name suggests, this is where you go if you want your services covered. Depending on the type of plan, you can expect to see coverage for routine services like oil changes, transmission fluid changes, oil and air filter replacements, as well as coolant, brake fluid, and cam belt replacements. If you keep to a regular maintenance schedule according to the manufacturer’s guidelines, most—if not all—of the routine work on your car will be covered.

For added protection, you can purchase what’s known as a maintenance plan. Plans like these are even more thorough, and might include additional services to repair and replace the parts that are subject to wear-and-tear such as brake pads and discs, wheel bearings, shock absorbers, fuses, and other items.

If you’re purchasing a new car—or a relatively new car in excellent condition—the additional monthly payments for these plans may wind up exceeding what you’d be paying without them. However, a lot of drivers prefer the security these plans provide, and would rather risk paying more to avoid having to pay for emergency repair costs when they least expect it.

Stranded driver calling for help

Warranties

If you’re purchasing a new vehicle, you’re certainly getting some kind of warranty. While the type of warranty varies from dealer to dealer, you can expect your first few years to be covered from any mishaps resulting from factory defects. Commonly, you can expect your new car warranty to cover the engine, fuel systems, and gearbox, as well as all of the electrical components, sensors, and audio systems. Some warranties will even go so far as to offer roadside assistance, which can be a major source of comfort for most drivers.

Extended Vehicle Service Protection

There are several things your manufacturer’s warranty won’t cover. It won’t cover regular wear-and-tear items such as brakes and brake pads, and within only a few years their warranties won’t even cover transmissions and other parts of your engine that can be incredibly expensive to repair. The only way to protect your car beyond the warranty is with an extended vehicle service protection plan. Vehicle protection providers have plans available that suit your needs and can cover cars as old as 10 to 20 years old.

If you’re buying a new car, or your older car is no longer covered under warranty, contact Freedom Warranty LLC to see what kind of extended vehicle protection plan works for you. Get the peace of mind you’re looking for and call today!

Debunking Extended Vehicle Protection Plan Myths

An extended vehicle protection plan is extremely valuable, but many people are hesitant to get one. Why? Because there are plenty of myths floating around online and being repeated constantly in face to face conversations. This article will shed light on common myths about extended vehicle protection plans.

Extension Plans Are Too Expensive

One of the most prevalent myths about extended vehicle protection plans is that they will cost too much and be a waste of money. While protection plans can cost a lot up front, many providers offer payment plans, which can be easier to manage. You will save a ton on repairs over time, and the plan will start to pay off starting with your first major repair bill. Plus, several extended protection plans include roadside assistance and rental assistance if your car breaks down or is in the shop.

Plans Are Sold Only at Dealerships

This is a misconception. You can only buy extended service contracts from dealerships. While they sound the same and offer the same benefits, an extended vehicle protection plan is actually a useful alternative to an extended service contract. Fortunately for you, there are a large number of providers around the U.S. that you can buy top vehicle protection plans from. This means your options aren’t limited to the dealership you bought your car from. You can explore other providers and find one that offers the benefits you need at a price you can afford.

Plans Are Identical

A lot of people are under the impression that all extended protection plans are the same. The truth is that dealerships and providers offer several plans with different prices, coverage, benefits, and features.  The type of coverage you receive depends on many factors. One is how much you are willing to pay. The more money you spend, the more coverage you’ll receive. Other factors include the state you live in, along with the make, model, year, and mileage of your vehicle. The best thing to do is shop around until you find the best extended vehicle protection plan for you.

I Don’t Need a Protection Plan

The thinking behind this myth is that, if you already have an extended service contract, you don’t need a vehicle protection plan that’s extended. The problem is that the extended service contract you get when you buy a vehicle has year and mileage limits which can expire fairly quickly, leaving you on your own. Adding an extended vehicle protection plan on top of an extended service contract will give you more coverage, for a longer amount of time, and at more affordable rates.  An extended protection plan is a worthwhile investment because you will get peace of mind knowing your vehicle and finances will be covered during an emergency and when in need of repairs. Contact Freedom Warranty today learn more about the facts behind common extended protection plan myths.

Tips to Choosing the Best Vehicle Service Contractor

Man with clipboard looking under car hood

Car problems are not something that the average driver plans for. Outside of regular oil changes, new tire purchases, and other minor maintenance tasks, most owners don’t worry about mechanical issues until after they notice something isn’t quite right with their vehicle. An extended vehicle service contract is a way for auto dealers, repair facilities, lenders, and insurance companies to offer an affordable solution for their customers’ unplanned car repairs.

The Basics about Auto Service Contracts

Not all vehicle service contract providers offer the same services at the same cost for car owners; they can vary significantly. There are generally three different types of vehicle service contract providers: dealerships, car manufacturers, and third-party independents. Each has its own benefits and drawbacks.

  • Upfront costs for the customer vary, depending on the make and model of the vehicle, its condition, the coverage provided, and the length of the contract. Generally, the upfront costs required by the manufacturer are the highest. The service contracts offered by the dealership are a lower cost, but customers may not like the fact that they must use only the repair services offered by the dealership. Third-party vehicle service contract companies are generally between 30 and 50 percent less than manufacturers’ options, and they allow customers to choose from a network of approved repair facilities.
  • There are both limited and comprehensive auto service contracts available. While limited contracts usually cover only the powertrain and some mechanical issues, comprehensive plans include electrical, audio, sensor components, and other technological components that are equipped in many of the newer vehicles. Few contracts cover all repairs, however.
  • Customers are generally not happy about the inconvenience associated with car repairs. The best vehicle service contract companies offer 24-hour assistance and rental car costs, which help ease the frustration.
  • Consumers are keeping their cars for longer periods of time before buying a new one. Check to see if the contract provider also offers coverage for vehicles from 10 to 20 years old.

Mechanic giving keys back to customer

Know the Company

There are thousands of VSC providers and plenty of scams in the marketplace, so it’s important to do some homework before deciding which ones offer the best extended vehicle service contract options for your customers.

  • Check the contract providers’ website. Not only should you find customer approval ratings and reviews, but there should be some information about the company and how long they’ve been in business. A physical address should be provided, along with an email and phone number.
  • Verify whether the extended service contract provider is both the administrator and servicer of the contracts. This makes a difference in the quality of customer service. Many VSC providers don’t provide this level of service.
  • Find out if the VSC company uses new or reconditioned parts for repairs, and if the authorized repair facility keeps a sufficient stock of parts on-hand. Repairs are an inconvenience for customers. Repair delays are worse.

Customer Responsibilities

Most service contracts require the car owner to maintain the car sufficiently through routine maintenance, such as oil changes. Some require them to keep detailed receipts to prove they’ve followed the requirements of the service contract. If the provider doesn’t think the customer has properly maintained the vehicle, they may terminate the VSC. Consumers are wary of any service contracts with tiny print that adds a number of additional stipulations. The top vehicle service contract companies offer great service, easy-to-understand requirements, and quality repairs.

Extended Vehicle Protection Plan: Things to Know

Drawing umbrella over car

How you promote a vehicle service contract (VSC) to your customers depends on whether they buy or lease the vehicle.  When you sell a customer a new or used car, it usually come with a factory warranty, or the remainder of an existing warranty with a used car. Sometimes that warranty is very limited. If the customer plans to drive the same auto for several years, the odds of a major component failure increases after the car warranty expires. In the event of a breakdown after the factory warranty expires, your customer will be glad they opted for the extended vehicle protection plan.

Incentives for selling a VSC to a customer can be presenting real-life examples of major mechanical failures, and the expense involved. Purchasing extended vehicle protection plans can be made with convenient monthly payments. Third-party payers are discouraged, also saving interest payments when VSCs are incorporated into vehicle loans. There are no interest fees with Freedom Warranty in-house payment plans.

Warranty Levels

Some service providers end coverage once the age or mileage of the vehicle reaches 10 years or 100,000 miles. The best extended vehicle protection plans allow greater flexibility in coverage. All vehicles have options for service protection that vary according to the age and condition of the vehicle. Many folks buy a car or truck and drive it for more than ten years. As long as they maintain the vehicle properly, they can have the service protection they need.

This company has wide-ranging coverage for vehicles, including 10 years/80,000 miles, 15 years/150,000 miles, and 20 years/200,000 miles. Owners of older vehicles deserve the best possible auto service contracts that newer vehicles enjoy, at no additional cost, including roadside assistance, a 24-hour helpline, and rental car coverage if the vehicle needs to stay in the shop for repairs.

Components Covered with a VSC

With an aftermarket service contract, your customers have the freedom to select the amount of coverage they desire. Standard coverage includes engine, transmission, transfer case, cooling, drive axle, air conditioning, and electrical. Certain items not covered are brake pads, catalytic converter, light bulbs, oil changes, seat belts, fuel system, brakes, power steering, tires, upholstery, and windows. There are several added options to choose from, and certain conditions apply: seals and gaskets, commercial use, entertainment packages, convertible top, sensor upgrade, suspension upgrade, and better labor rates.

Easy to Understand Contracts

A contract for an extended vehicle service protection plan is available for all makes and models of vehicles. If you are selling luxury, classic, or economy cars, the Freedom Warranty has the best VSCs without low-mileage requirements. You can offer these contracts for vehicles up to 10 years old, and beyond 20 years. The service contracts are straight-forward without any hidden fees. It’s important that you read the entire contract and understand any limitations or conditions. Your objective is to enhance vehicle ownership for your customers, and to address specific repair needs of older vehicles.

Hand sheltering car from falling dominoes

The Best Extended Service Plan

All aftermarket service contracts are not equal. You want to be able to offer the best possible extended vehicle service programs to your customers. Happy customers mean repeat business and word-of-mouth referrals to your dealership or auto sales. Freedom Warranty was established in 2015, and is one of the fastest-growing VSC companies, covering 21 states and the District of Columbia. You can be confident that you are offering the very best service contracts to your customers, with the best value and service in the industry.

The service contracts are easy to understand and hassle-free. Freedom Warranty services what they sell with no second- or third-party administrator. Freedom Warranty products are only available through authorized auto dealers, certified repair facilities, established lenders, and accredited insurance agencies. Call Freedom Warranty today for current pricing, and get all the information you need to offer the best extended service contract that suits your buyers’ needs and budgets.

How Customers and Dealers Benefit From Extended Service Contracts

How Customers and Dealers Benefit From Extended Service Contracts

car dealership vehicle service contract

It would seem that selling an extended vehicle service contract to a customer would be almost second nature, a natural extension of a vehicle purchase. The pitch almost sells itself: Buy this and protect the asset you just invested in! Unfortunately, many dealers have to be convinced that selling the best extended vehicle service contract on the market is worth their time. Read on to learn why it is.

It’s Easy Money

Your customer just made an investment that is worth tens of thousands of dollars or at least several thousand dollars if they purchased a pre-owned vehicle. Like everything in life, they could drive their vehicle for five years and never have anything other than routine maintenance to perform, or some oddity could occur, and they end up needing service on their way home. That is the nature of owning a vehicle.

The insurance vehicle service contract providers offer is a guarantee against those odd occurrences. In addition to basic coverage, the best extended vehicle service contract offers the customer security beyond the manufacturer's warranty on some repairs and replacements. That alone can be a huge financial benefit to customers that makes purchasing the contract worthwhile.

The More the Merrier

Vehicle customers, for the most part, visit a car dealership because they have a need. That  need is a set of wheels they can depend on. Sales people pitch and sell them on additional features, but for the most part, their basic need is an ability to transport themselves. It makes sense to do everything possible to protect the thing that fills that need. The best vehicle service contract companies know that and put together extended service contracts that cover what can hinder filling that need. When pitched to customers in that light, the reason for purchasing a coverage contract becomes really clear and worth the investment.

That need also opens the door to sell the contract while selling the features of the vehicle. The motor that is covered under the contract is vital to the vehicle and has expensive maintenance needs. The computer board may eventually need replacing because it can malfunction or even break. Every customer complains about the conditions of our roads; the extended service contract may cover tires and wheels. By pitching the practicality of the contract, it sells itself.

What, though, does the dealer get out of it?

dealership vehicle protection service agreement

Satisfied Customers

A customer that knows their vehicle is covered should something go wrong will look at the dealer favorably. They will know the dealer has their best interest at heart. Further, they know if something goes wrong, the fix won't cost them thousands out of pocket. All that builds goodwill, even if the contract is never used.

Additional Revenue

If a dealer’s salespeople only sell an extended service contract to 5% of its customers above what it already sells, that is thousands in extra revenue monthly for the dealer—and, it doesn't cost them a thing. The salespeople do the selling, vehicle service contract companies address the coverage, and the fix is done by mechanics. Even if the customer brings their vehicle to in-house mechanics, they still produce revenue by virtue of fixing the thing that exercised the contract.

Marketing and selling vehicle service contracts to customers is a natural extension to actually selling the vehicle. It is easy profit for the dealer, and the customer can rest assured that if something happens, it will be taken care of. Check out Freedom Warranty LLC for more details.

 

 

Getting the Most Out of an Extended Vehicle Service Protection

Getting the Most Out of an Extended Vehicle Service Protection

vehicle repair extended protection

Offering your customers an extended vehicle protection package is an excellent strategy for low-term growth and customer retention. Buyers want to know they’re protected if something should go wrong with their new or used vehicle prematurely. Extended vehicle service protection provides this sense of security. Keep reading to learn more about how offering vehicle service contracts to your customers are beneficial for dealerships too.

Retention and Loyalty

Auto service contracts allow dealerships to retain customers and improve customer loyalty. Unfortunately, in today’s crowded market, that’s not what’s happening. Buyers go where the deals are and where they feel taken care of, during and after the sale. Service contracts retain customer loyalty because your customers know you have a product available at a reasonable price that will never leave them stranded. Great aftermarket service contracts provide 24-hour roadside assistance and towing. These perks matter as much as the low-cost repair and replacement benefits that are part of the service contracts.  

Fewer Goodwill Repairs

These are out-of-pocket repairs that dealerships make on pre-owned vehicles for fostering a long-term relationship with customers. The problem with goodwill repairs is that the dealership is on the hook for the parts and the labor. Yes, your customer is happy, but if you make too many goodwill repairs, how satisfied are you? Could too many goodwill repairs be costing you more money?

Dealerships that offer extended vehicle service protection benefit because they can recoup expenses from any repairs made to the vehicle after the sale. When a vehicle comes with a service contract, you still foster long-term customer relationships without the drawback of losing money on the sale because of a goodwill repair.

Increased Customer Referrals

The majority of your dealership’s business is based on referrals. If a customer feels taken care of, they will spread the word and tell their friends and family. Auto service contracts are one of the best ways to improve customer satisfaction and increase referrals. When a customer doesn’t have to spend their hard-earned money on an expensive car repair because their purchase came with an extended service contract, that improves customer satisfaction. Offering your customers affordable auto protection protects them from unexpected repair and maintenance costs. Also, customers tend to be happier with the coverage they receive directly from their dealer than from third-party auto contract providers.

Customer Convenience

Lastly, if a customer needs car repairs, they don’t have to drive all over town looking for a shop that’s going to fix the problem right. As the go-to extended vehicle protection center, your customer comes to you. Any repair or maintenance work is done at the dealership, and your customer doesn’t have to spend their time trying to find someone who’ll honor the service contract. Customers like convenience. Don't make them search for a shop when you can offer them in-house services.

Dealers, are you interested in speaking with extended vehicle protection providers? Contact Freedom Warranty LLC, to learn more about the auto service contracts available and give your customers a reason to keep buying cars from you year after year.

extended vehicle protection

Warranty agreement

Different Kinds of Vehicle Warranties: An Overview

Every time you purchase a vehicle, whether it is a used new, you will be presented with various vehicle warranties by the dealer. The vehicle warranties will differ from one another. Some offer protection for a certain period and others for a certain number of miles that you cover. At times, you may be lucky and find a dealer who will offer a protection warranty with both conditions.

Freedom warranty LLC offers various vehicle extended warranty programs for every driver. We will help you select a vehicle warranty that will fit your every need as a driver. Outlined is an overview of the different types of vehicle warranties.

A Used Vehicle Warranty

You may be wondering if a used car comes with a warranty. The answer is yes, especially if the car is young. You can get an extended vehicle warranty plan that will cover your used car. The warranty differs with different types of car dealers. For instance, a used car warranty mostly covers repairs for an agreed period or miles. This ensures a driver will not incur unexpected and expensive repairs before the agreed time ends. Therefore, before purchasing a used car, ensure to get the warranty.

A New Car Warranty

Whenever you purchase a new car, expect extended vehicle warranty plans from the dealer known as bumper-to-bumper or a powertrain warranty. The bumper-to-bumper warranty covers everything that is not related to maintenance issues. The powertrain warranty covers anything that provides power to the wheels of your car including the engine, transmission, and drive shafts. The coverage of these types of warranties depends on different car dealers.

Anti-Perforation Warranty

Just like the name suggests, anti-perforation warranty covers the vehicle from corrosion. However, the warranty is offered on a time restriction basis for most car dealers. At times, a vehicle’s body may rust. Therefore, it is wise to choose an anti-perforation warranty to cover all the expenses. Ensure that your vehicle extended warranty cost will be able to cover all the unexpected expenses beforehand.

Car diagnosis

Accessories Warranty
The accessories warranty covers the body parts of the vehicle. This type of warranty requires the car dealer to install all the necessary accessories in the vehicle before handing it to you. It’s good for 12 months or a 12,000 miles, whichever comes first.

Emission Warranty

At times, a vehicle’s emission control may not function properly. This may be due to a defect in the materials. At times, it may be due to workmanship. Either way, the emission warranty will cover the defects. The coverage will cover the hardware parts as well as the software part.

Hybrid Warranty

Hybrid warranty covers the hybrid parts of the vehicle such as the electric motor, and battery pack among other system parts. The hybrid vehicle extended warranty prices differ from state to state. There are certain states that offer hybrid warrant coverage for 8 years. A state like California has a hybrid coverage warranty of 10 years or 150,000 miles.

A Powertrain Warranty

As mentioned earlier, a powertrain warranty covers the part that powers the wheels of your vehicle. These parts are warranted separately from the other body parts. This is due to their long lifespan expectancy. The standard powertrain warranty usually covers for five years or 60,000 miles.

As you can see, there are various warranties that will protect you from incurring unexpected expenses. Contact Freedom Warranty for a better insight of the various warranties that will suit your every need.

Used car warranty

Extended Warranty on Used Cars: Is It Worth It?

When you purchase a used vehicle, you may be concerned about the potential for problems due to previous wear and tear. That’s why many people also purchase a warranty from an extended vehicle protection provider. This warranty will typically cover major repairs like engine, transmission, drive axle, engine cooling, and other basic systems. If you’re wondering if purchasing an extended warranty is a smart idea, here are some things you need to know.

Warranty Cost vs. Savings

An important thing to consider is whether or not you’ll be able to pay for any major repairs that are no longer covered under the factory warranty. If you spent most of your savings on the car and won’t be able to build it back up quickly, it’s a good idea to have some kind of warranty to cover major repairs that you’ll be unable to afford otherwise. This is especially true if the money you’re spending on the warranty won’t substantially change the amount you can save towards repairs.

Reliability Rating

You also need to think about how reliable your vehicle is likely to be. You can look up reliability ratings and dependability studies on your specific make and model to help gauge this. If your vehicle has a lower reliability rating, you may want to consider an extended vehicle protection service. An independent mechanic can also find indications about the car’s dependability, so if that’s an option before purchasing a used vehicle, be sure to take advantage of that.

Ownership Length

If you hope to keep your car for a few years and the one you’ve recently purchased is at least ten years old, it’s a good idea to at least purchase a basic warranty. There are warranties specifically designed for cars between ten and twenty years old, with mileage in between 80,000 to 200,000 miles. These warranties will cover the major systems in your car so that you’ll only need to worry about typical maintenance due to wear and tear like brake pads, transmission flushes, and oil changes.

Used car

Additional Coverage Options

There are numerous options when purchasing an extended warranty, but one of the biggest benefits is the additional coverage options you can choose to add. You can determine what coverage is most valuable to you by taking into account your previous history with car repairs as well as the hazards you typically face in your area. These factors can help you decide if towing, road-hazard tire, rental car, manufacturer extension, and other coverage options are important to you.

Choosing a Warranty

If you’ve determined you need an extended warranty, there are a few tips to help you get the best one. Research who stands behind the warranty. It may be a car manufacturer, individual dealers, or the warranty company itself. In addition, these contracts are complex, so make sure you know exactly what is and isn’t covered, and that expensive parts like the engine, transmission, transfer case, cooling system, and drive axle are covered. Make sure you know where you can get repairs, if repairs are paid directly to the shop or by reimbursing you, and if there are waiting periods or pre-approvals required. In addition, if you think you may sell your vehicle in the near future, ask about additional coverage that allows you to transfer the contract with the sale. This is important information to know because it can increase the value of your car. Contact Freedom Warranty LLC today to learn more about used car extended warranties.

Car service

Tips to Choosing the Best Vehicle Service Contract

Of the entire process of buying a vehicle, choosing the right vehicle service contract is the most stressful, time-consuming and confusing. You should review the best vehicle service contract companies you can find and get a contract that will meet your anticipated needs, but what does that entail? Here is a brief tutorial to help you make your decision.

Ask Questions

Entering into an agreement with vehicle service contract companies is a major step in the vehicle buying process. Making sure you understand what it is you are agreeing to is the only way to make sure you get what you expect. The only way to do that is to ask questions and lots of them. The only dumb question is the one you did not ask, so make sure you are thorough. Any reputable company will be glad to answer your questions and provide you with more information than you need to make an informed decision.

Read the Small Print

Everyone has been told to thoroughly read a written contract since that type of agreement was conceived and almost everyone ignores that advice at some point. Reading the fine print in a contract is hard work because written bonds tend to be very boring, but reading every last word is vital! With a vehicle service contract, the tendency is to rely on vehicle service contract administrators to outline what the agreement entails and that is a mistake. Make sure you read the contract from start to finish and ask questions about anything you are not sure about.

Follow a Checklist

Make sure you understand as much about the warranty/contract you will be signing as possible. Understand the terms and who is covered, the type of repair work that is covered and any maintenance requirements. Review any deadlines or mileage benchmarks and map out the dispute resolution portion so you are not blindsided if you end up having a disagreement over what is covered and what is not. Verify where any work has to be completed and if you go with a third-party repair service (in an emergency,) what type of documentation is needed to have it applied against the warranty. Treat your agreement like an official, legally-binding contract and methodically work through it to ensure you know it inside and out.

 

Service contract

You Get What You Pay for

If the extended agreement sounds too good to be true, price wise, it probably is. Beware of a contract that is so inexpensive it makes no sense. The best advice is to walk away from anything offered at a bargain-basement price, but at the very least, you should do heavy research into the contract and find out why it is so cheap and if customers are happy with the contract. Another thing to be aware of is that inexpensive contracts often come with very high deductibles, sometimes so high that a person using it will never exceed their deductible unless they have a major repair to cover. Finally, lower cost contracts often have a lot of rules that must be followed to ensure coverage.

Picking out the right vehicle service contract requires due diligence, careful research, common sense and an understanding of what you need. Check out Freedom Warranty to get extended vehicle protection that is reliable and affordable.

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