You have just purchased a new car, and before you know it, you are asked if you would like to buy an extended service plan. This plan, often, promises to pay for certain repairs or services on your car. But are extended service plans worth the extra money you will be paying? As your Aurora auto body shop, we take a look at what you should consider if you are thinking about an extended service plan.
Before agreeing to buy an extended service contract, you will want to consider several things:
Does it duplicate your existing warranty coverage?
What about added features coverage?
How long does it last?
Is there a deductible?
What repairs does it cover?
Duplicate Auto Warranty Coverage
Be warned that some extended service plans duplicate what is already covered by your car’s warranty. Before paying for a service contract, look at your warranty and compare it to the contract and see exactly what repairs are covered. If there is a great deal of crossover between the two, you could find that you are better off forgoing the extended service.
Added Feature Coverage
There are some extended coverage for vehicles that cover a lot of items that normal warranties do not. Most warranties cover items related to the basics of the car, such as engine and power train. But, many new cars carry a great deal of added electronics, such as memory settings for your automatic seats. If the motor drive for those seats go out, and they do, most warranties won’t cover the repair which can be thousands of dollars. But, some extended and added plans do cover such systems and can be worth the money.
Costs and Length of the Extended Service Plan
The cost of your service plan is sometimes dictated by your car’s make and model, as well as the length of the contract. Some initial contracts can range from hundreds of dollars to $1,000. In addition, there is sometimes a deductible you may have to pay every time your car is serviced or repaired.
Repairs Covered in Your Extended Coverage Plan
Very few contracts cover all repairs. Typical exclusions are:
Common “wear and tear“ such as brakes, struts, and shocks
Towing and rental car expenses
Alignments, tune-ups, and adjustments
If items are not listed in the extended service plan’s contract, assume it is not covered. Also, some coverages use depreciation in calculating coverage. As a result, they may only cover partial replacement costs depending on your vehicle’s mileage.
How to Use this Information
We hope this information helps if you are considering adding on an extended service plan when buying a car. The most important thing is to carefully examine your car’s warranty and compare it to the contract and what services are covered. You may find there is no need for the extended service plan given your warranty. One thing most contracts won’t cover is actual body damage. If you have need of collision repair, please call us at 303-344-2212 or contact us online.
