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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.

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