When you buy a vehicle one of the major concerns is what will happen if the car stops working. Automobiles are very expensive to fix, so you do need to be very concerned about having to pay the cost of repair.
If you were in an accident and you have the right type of coverage, your car insurance will pay to repair your vehicle. And you pay monthly for this type of coverage. Everyone understands that it’s a necessity because of the typical cost related to car repair.
When you buy a new car many of its parts are covered by warranty yes. Things like the engine, rust protection, paint, and many other parts of the vehicle have long warranties against there either being inoperable or breaking. But many of the parts of an automobile, do not have a warranty and you paying for the repair can be very costly.
For this reason there are automobile service contracts that you can buy that will cover the expense of repairing or servicing the car. Companies like Accelerated Service International provide service contracts for all types of vehicles. The types of parts and service covered varies depending on the contract you purchase and the type of vehicle you select, having a service contract can be a smart decision. But you need to be aware of how to select a service contract provider and a contract that provides what you need:
Price and length
You need to determine the price of the service contract, and compare this price to the type of service provided. Is the price in line for what you are receiving? If the service contract covers things like tires, oil changes, transmission problems, and brakes, does the cost of the contract seem in line with what the cost of repair and service for these items should be? You have to assume depending upon the age of the car and how you drive, that some of the items covered might need to be repaired, replaced, or serviced. Make a best guess based upon critical factors like the age of the car and how you drive, as to what parts might need to be replaced. Estimate the cost of these parts and put that up against what you are paying for the service contract to determine if you are in fact paying the proper amount.
Consider as well the length of the service contract. For new cars you can assume that major items will either be covered by warranty or won’t have a problem. However if you drive a lot of extra miles you may have issues with some parts of the car. Understand how long each of the covered parts is projected to last. You may find that based on the amount of time that you intend to drive the car, that there will be a long period, when the car part will not be covered. This is when an extended service contract can be very helpful. You can cover that time with an additional warranty, by paying a small additional monthly fee.
Service contract provider
The company providing the service contract is much more important than the service contract itself. You need to be sure that the company providing the service contract has a long history of paying out car owners. Check online to see if there are any negative comments about the company. This research can be extremely helpful and cause you to avoid heartache down the road. There is no excuse for a service contract provider to not pay out a legal claim. This could be an indication that the company has financial issues or that they are just not a great company. You want to see positive comments from car owners who have had to exercise this service contracts.