There are lots of benefits to buying a brand new vehicle. One of those benefits is that it comes with a warranty. However, those warranties tend to be substantially shorter than your finance agreement, usually by two years, in fact. For three years, or up to 36,000 miles, you will be protected against every mechanical breakdown, bumper to bumper. But after that, you are on your own. This is why companies like Accelerated Service International have developed extended warranty programs, also known as vehicle service contracts.
What Is a Vehicle Service Contract?
Essentially, this is a type of insurance that gives you the peace of mind of knowing that, when your warranty runs out, you are still covered for mechanical issues. Most of the time, vehicles don’t start to develop problems until after the manufacturer’s warranty, after all, so this is a little bit of extra protection.
Once you get past that magical 36,000 miles mark, you will start to see that parts are failing. And with vehicles today being technological marvels, the cost of repairing those parts can be astronomical. If you have a vehicle service contract in place, however, all you will have to pay for is your excess. Usually, you will be covered bumper to bumper for wear beyond normal levels and for mechanical failures. That said, you can also extend that cover to include more, or make it cover a little bit less, which generally means it is cheaper.
Finding a Vehicle Service Contract
Start by knowing exactly what you do and don’t want to be covered for. Once you know that, it will be a question of finding the company, like ASI, that best meets those needs. Make sure you investigate the coverage details properly. For instance, find out how long the company has been in business for, and what their reputation is in terms of how quickly they pay out. Some companies offer extremely cheap contracts, but they usually have unfair practices as well, such as not keeping enough financial reserves in the bank to cover repairs. It has even happened that companies went bankrupt, leaving people with repairs that nobody would pay for. This is why it is important to see how long the company has existed. Do also read customer reviews, so you get an idea of what they company is good at, and where it could improve.
Once you have done your research and you have chosen the company to go with, you will be covered as soon as you sign on the dotted line. Interestingly, having this warranty in place can significantly increase the value of your car as well, particularly if you pay for the full contract upfront. This is because the contract generally is transferable.
The more miles you drive, the worse the state of your car will be. Even vehicles aren’t immune to Father Time. However, with a vehicle service contract, you will have the peace of mind of knowing that you don’t have to worry about costly repairs.