Do You Need Motor Vehicle Extended Service Contracts – What Do Experts Say

When you buy a motor vehicle, you get a manufacturer warranty for a limited time for all vehicles. On top of this, there are extended service contracts that begin after the manufacturer warranty expires. When it comes to their purchase, people are confused about whether they are worth investing in or not. Experts say you must ascertain your individual needs to decide whether you need to invest in it or not.


Motor vehicle extended service contracts – what do they cover?


Motor vehicle extended service contracts cover the costs of repair, maintenance, and replacement of the car caused by defects or regular wear and tear.  The car dealership generally sells them can see their advertisements by third-party companies on the radio, television, on the Internet, or they can be sold to you by telemarketers.

Benefits of these extended service contracts

The biggest benefit of these service contracts is protecting yourself against those factors that are not covered by the factory warranty. You can safeguard yourself against unforeseen expenses when it comes to your motor vehicle. However, to get the best service contracts for your needs, ensure you keep in mind the following points-

  • It would help if you never jumped to the first company that offers you extended service contracts on motor vehicles all of a sudden. You should verify the company’s background and ensure that it is licensed to conduct business in the area.


  • Never rely on phone solicitations and emails that tell you that your factory warranty will expire. You must first check to see whether the manufacturer warranty still exists before you go in for an extended service warranty for your motor vehicle. You must know what your manufacturer warranty covers, or else you will land up buying unnecessary coverage.


  • You must precisely know what the company or the companies you are entering into the service contract is doing. You will often find that the company that sells you the contract is not the organization that backs it and pays the company or the service provider that administers that contract. These companies should be named as per the state’s laws, and the salesperson who is interacting with you for the service contract should give you this information.


  • You must review the written contract of the service contract thoroughly. When you request this contract, the law requires the organizations to deliver a copy of the contract to you before its payment. You should take time to understand the terms and conditions of this contract carefully. In case you have doubts or any concern, you must clarify them with an advisor before signing the contract.


Keep in mind the above points when it comes to buying motor vehicle extended service contracts. However, never do any business dealings with strangers in the market. You should select a credible company and known to you in the market or recommended to you by someone you trust.