Myths about Vehicle Service Coverage
Vehicle Service Contracts, often referred to as extended warranties, are some of the most misunderstood aspects of car ownership. Rife with complicated terms and technical jargon, these plans can be confusing and difficult to understand. For this reason, many people who sign up for such plans end up having to pay out the pocket for certain repairs. If you are interested in getting the most out of a vehicle service contract, it would be helpful to separate the myths from reality.
Myth #1 – You don’t need any more coverage.
Many people who have already purchased life, home, and auto insurance tend to think that they don’t need any more insurance, least of all a vehicle service contract. Although this is true for most owners of new cars, people who purchase older models that may require frequent mechanical repairs will benefit from a vehicle service contract. This will help save you the cost of paying for repairs out of your pocket after the manufacturer’s warranty lapses.
Myth #2 – Vehicle service contracts cover only part of the repair.
Most people think that a vehicle service contract will cover only part of the expenses, with the rest having to be paid out of the pocket. Although this is true of some plans, there are coverage plans that cover all the expenses. Such plans can be especially useful for costly repairs.
Myth #3 – Vehicle service contacts can be used to pay for existing issues.
Many people try to take advantage of a vehicle service contract by signing up for such a plan when they know their car is on the verge of breaking down or worse, already broken down. Apart from being unethical, this is also not allowed by coverage companies, who are staffed by people who will be able to determine the condition of your car beforehand. Most companies will also require you to describe the condition of your car, subject to later verification by a company representative.
Myth #4 – The car owner has no say over how the repair is performed.
Most vehicle service contract auto repair insurance plans actually have a lot of flexibility with regard to the repairs that you specify. In most cases, you will even be given the opportunity to specify the type of repairs you want performed on your car, and even the parts that should be used.
Myth #5 – Vehicle service contract covers everything.
Most people also think that a vehicle service contract will cover all issues with the entire vehicle. This is almost never the case, and you will find that such plans tend to be very specific with regard to the parts of the car that they do cover.