Things to Ask When You are Considering an Auto Service Contract

The cost of repairing today’s newer cars can be a major expense – as they have become more like computers on wheels, the days when you could pop open the hood and fix anything but the most minor issues yourself are in the past. For that reason, you may want to consider purchasing an auto service contract for your new or older car from industry experts like Omega Autocare. Not all contracts are created equally, however, and there are some important questions that you should ask before you sign on the dotted line.

Duplication of Warranty

New vehicles will be covered under the manufacturer’s warranty, and you should check to make sure your service contract offers benefits that are not covered by your warranty. Many service contracts do in fact offer useful benefits that are typically not covered by the dealer even for new cars, including road-side service, reimbursements for the costs of renting a replacement car while yours is being worked on, accommodations if you are stranded due to a breakdown, and other similar items.

Length of the Contract

Contracts will typically be available for different terms. When you are considering the best contract length for you, you need to take into account how long you plan to keep your current car. You also need to understand what your options are if you decide to sell the vehicle before the end of the contract – can you transfer the contract to the new owner? Can you cancel the contract early, and if so, what is the penalty? You should also take into account the age of your car. It may be that for the next few years you want some peace of mind but don’t expect any major problems from your relatively new car. However, if you are planning to keep that car for the long-term, you may want to consider the increasing likelihood that you will need major repairs down the line. So – when thinking about the length of the contract, be sure to take this into account, and find out if you will be allowed increase your coverage as your car ages by upgrading your agreement or if you need to wait until your contract expires.

Coverage

Make sure that you carefully investigate what is covered by your contract and what is not. No contract will cover everything, and you can avoid frustration if you know in advance what your plan protects against. With that information, you should do your homework and investigate the kinds of repairs and performance problems that you can expect based on the make, model and age of the car. If you have good sense of what sorts of repairs you might need, then you can choose the plan that will provide you with that level of coverage. Be sure as well that you understand what sorts of things can void your coverage – for example, some plans will not cover vehicles that are being used commercially or to perform certain tasks (like hauling for hire or snow removal).

Any reputable plan provider will have very clear documentation laying out the details of the different plans, the exclusions, and the obligations that you have to maintain the terms of the agreement. Ask questions when in doubt, and do your homework to make sure that you have the best plan for your needs.

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