What's a Vehicle Service Contract or Extended Vehicle Warranty?
Most vehicles purchased these days come with a warranty. This is an agreement between the manufacturer and the customer that should anything break, malfunction, or otherwise go wrong with the vehicle within a certain period of time (typically 2 years or 36,000 miles, whichever comes first), then the manufacturer will repair or replace the component at no cost to the customer.
Vehicle service agreements (also known as extended warranty plans) are designed to offer similar peace of mind by literally extending the length of time a customer can expect to receive such coverage.
MYTH - I don't need to buy a vehicle service contract or extended warranty until my manufacturer's warranty expires.
FACT - The newer your vehicle, the lower your rates will be. A common misconception is that you are buying double coverage if you purchase extended vehicle warranty coverage before your manufacturer's warranty expires. You are simply locking in the costs and rates now and protecting against increases in the future. You can also enjoy a much lower cost and additional features like roadside assistance until your extended auto warranty coverage goes into effect.
Don't Wait. Buy Now and Save.
There are a lot of rumors going around that if you wait to get extended vehicle warranty coverage, you'll be covered for a longer amount of time. If vehicle service plans (extended auto warranties) were based only on calendar days then this would be true... However, the truth is that extended car warranties are often more closely connected to the vehicle's age and mileage. That means if you want the best level of protection for the longest amount of time, it's smart to buy sooner rather than later.
The Cost of Waiting
Maybe an extended vehicle warranty seems like a big cost right now. Or, maybe you believe that whatever small things may go wrong with your vehicle, it probably won't cost as much as a vehicle service contract or extended auto warranty. The startling truth is that it only takes one expensive system or component to fail in your vehicle to make an extended warranty worth every penny. And, the longer you wait, the higher the costs will be for future repairs, too. Even if you're still covered by a manufacturer warranty, you shouldn't wait for benefits like roadside assistance and car rental reimbursement. The time is already right to cover your vehicle with an extended vehicle warranty plan.