Are New Copier Service Contracts A Good Idea

Featured Extended Warranty Companies

We reviewed the best extended auto warranty providers, and here are our summit picks.

Vehicle service contracts tin can save you lot coin on costly auto repairs.
Manufacturers and tertiary-political party providers both offer vehicle service contracts.
Extended protection can be a worthwhile financial investment for many drivers.

Affiliate disclosure: Automoblog and its partners may be compensated when y'all purchase the products in this commodity.

Whether you're about to purchase a new car or are nearing the cease of your factory warranty, yous may exist because a vehicle service contract to keep your vehicle in peak condition while likewise saving money. But what do vehicle service contracts include, and are they worth the cost?

In this article, we'll discuss vehicle service contracts in-depth, including what they typically cover, additional perks that may be included, and average cost points. Nosotros'll also go over the pros and cons of ownership an extended warranty from a manufacturer versus a tertiary-party provider.

It'due south best practice to get more than one quote when shopping around for a vehicle service contract. We've reviewed the all-time extended motorcar warranty companies, and yous can achieve out to a few of our elevation recommended providers for complimentary, personalized quotes to a higher place.

What Is a Vehicle Service Contract?

A vehicle service contract – also called an extended auto warranty, vehicle protection programme, or extended service contract – protects you lot from paying for unexpected motorcar repairs out of pocket after your manufacturing plant warranty expires.

There are two main types of vehicle service contracts: a powertrain warranty and a bumper-to-bumper warranty. A powertrain warranty covers the components that make your vehicle move: the engine, transmission, transfer case, drive axles, and other related components. A bumper-to-bumper warranty covers nigh vehicle parts between your front and rear bumpers. Bumper-to-bumper warranties are often exclusionary, meaning that instead of listing every function that's covered, your contract will only listing what isn't covered.

Many vehicle service contract providers offer coverage in between these 2 extremes, such equally plans that encompass your powertrain as well equally your brakes, ac, audio organisation, or other major components.

What Isn't Covered Under a Vehicle Service Contract

Even the most extensive vehicle service contracts accept a few exclusions. Nigh plans won't embrace:

Tires, wheels, and rims
Pigment, glass, or upholstery
Routine maintenance services
Wear-and-tear parts like brake pads and wiper blades
Harm resulting from accidents, collisions, corruption, or misuse
Harm resulting from environmental events similar floods or acid rain

Vehicle service contracts too don't cover pre-existing problems. Nearly providers take a waiting flow of 30 days and i,000 miles before coverage kicks in. This is to make sure your vehicle doesn't have any existing defects.

Additional Perks

Many vehicle service contracts come up with sure benefits at no additional cost. Typically, these perks include:

24-hour roadside assistance: This service typically includes fuel deliveries, lockout assistance, battery spring-starts, and winching.
Towing services: If your vehicle breaks down, the provider will pay for it to be towed to the nearest dealership or authorized repair facility.
Rental machine reimbursement: When your vehicle is in the store for a covered repair, a provider may offer reimbursement for alternative transportation, like a rental car.
Trip interruption reimbursement: If a mechanical breakdown occurs while you're far from home and you have to stay overnight while repairs are made, this benefit will help cover food and lodging upwardly to a certain dollar amount.

How Does a Vehicle Service Contract Work?

A vehicle service contract tin can be purchased either from a manufacturer or a third-political party provider. There are benefits and disadvantages to either pick, so it's best to expect at all aspects earlier deciding which is all-time for your needs.

Here are a few differences between manufacturers' extended warranties and third-political party vehicle service contracts:

	Manufacturer Vehicle Service Contract	Third-Party Vehicle Service Contract
Price	Vehicle service contracts offered by manufacturers tend to be more expensive and may be subject to dealership markups.	Third-party vehicle service contracts are often more than budget-friendly.
Repair Facilities	Well-nigh manufacturers mandate contract holders to go to a dealership for covered repairs.	Third-party providers allow for repairs to be made at dealerships and independent repair shops.
Repair Options	Repairs are guaranteed to be performed past manufacturing plant-trained technicians using genuine replacement parts.	Repairs tin can be performed at a dealership by factory-trained technicians, but 3rd-party providers may not always encompass the total toll of genuine parts.
Coverage Options	Manufacturers tend to offer between one and three vehicle service contract options.	Third-party providers tend to have more plans, with many offer five or vi options to choose from.
Time Limits for Purchasing	Manufacturer-backed vehicle service contracts ordinarily need to be added on at the time you purchase your vehicle or before your manufactory warranty expires.	Third-party plans can usually exist purchased at any fourth dimension, so long as your vehicle is within a provider's age and mileage eligibility requirements.
Contract Details	A vehicle service contract from a manufacturer may be more than specialized for your detail car brand and model.	Third-political party providers' vehicle service contracts tend to be more generalized so they tin cover many unlike vehicles.
Term Limits	Manufacturer-backed vehicle service contracts just extend up to 150,000 miles.	Third-party vehicle service contracts have term limits up to 250,000 miles.

How Long Does a Vehicle Service Contract Last?

Vehicle service contracts last for an agreed term length that can span anywhere from a few months to over a decade. Commonly, a contract comes with a time limit as well as a mileage limit. For example, a vii-year/100,000-mile vehicle service contract lasts for either seven years or until your vehicle reaches 100,000 miles, whichever comes beginning.

Hither are a few examples of term limits from popular manufacturers and third-party providers:

Type of Vehicle Service Contract	Company	Maximum Term Limit
Manufacturer Vehicle Service Contract	Honda	viii years/120,000 miles
	Toyota	10 years/125,000 miles
	Ford	8 years/150,000 miles
Third-Party Vehicle Service Contract	Endurance	15 years/200,000+ miles
	CARCHEX	10 years/250,000 miles
	CarShield	300,000 miles

How Much Does a Vehicle Service Contract Cost?

Based on information we've sourced from industry-leading providers, the average vehicle service contract price ranges from about $1,700 to $4,000 in total. This is a large range because costs depend heavily on individualized factors including:

The coverage you lot choose: The more comprehensive your plan is, the more it volition cost. Additionally, longer contracts are typically more expensive.
The deductible y'all choose: Every bit with auto insurance, selecting a lower deductible volition lead to a college overall coverage cost. Typical vehicle service contract providers offer $0, $50, $100, and $200 deductible options.
Your vehicle historic period and mileage: If yous're purchasing a policy for an older or higher-mileage vehicle, it'll typically come up at a higher premium. This is because cars tend to break down more frequently equally they historic period and article of clothing.
Your vehicle make and model: If you drive a luxury vehicle or your car has many loftier-tech components, it's probable that repairs and replacement parts will be more than expensive. Therefore, the cost of your vehicle service contract will be higher.

The cost of your vehicle service contract may also depend on how you choose to pay for it. Many third-party providers offer the choice to pay upfront or choose a goose egg-involvement monthly payment plan, which won't affect your full price. However, dealerships ofttimes permit you lot to roll the cost of extended coverage into your vehicle financing. This means you'll exist paying interest on your plan.

Are Vehicle Service Contracts Worth Information technology?

Vehicle service contracts are worth it for many drivers. In fact, a contempo report past Pegasystems Inc. reported that "62 percent of consumers with active warranties study benefitting from them within the past twelvemonth." However, the value of a vehicle service contract will ultimately depend on the driver and vehicle. Extended auto warranties can save money on costly repairs simply may non be the best financial investment for everyone.

Hither are a few pros and cons of extended car warranties:

Vehicle Service Contract Pros	Vehicle Service Contract Cons
They raise vehicle longevity by ensuring you tin beget repairs later in your car's life.	If you do not experience frequent breakdowns, some coverage may get unused.
You'll save money on expensive repairs, especially if they price more than than you paid for your coverage.	Every contract has certain exclusions and limitations, so not all repairs and services volition be covered.
Coverage is usually customizable, so y'all accept the pick to only pay for the coverage you desire or conceptualize needing.	There are often waiting periods before coverage kicks in.

If you plan on selling your vehicle shortly afterward your factory warranty expires, you probably don't need a vehicle service contract. However, if you're one of the many drivers who intend to keep their vehicles around for the long haul, an extended warranty can help you go on your automobile running in acme status.

However, drivers with highly reliable cars, or even lengthier factory warranties, may merely want to budget for repairs rather than purchasing a vehicle service contract.

If you're not sure about a vehicle service contract's value, consider reaching out for gratis, personalized quotes from our summit recommended providers beneath. With multiple quotes, you can effectively compare plans based on their coverage and price points.

Our Top Recommendations for Vehicle Service Contracts

Equally mentioned, reputable extended car warranty companies take many advantages over manufacturer-backed coverage, including affordability, flexible coverage, and more repair shop options. Our review team has thoroughly researched the manufacture and identified the best providers on the market. Below, nosotros outline two of our top picks.

Endurance: Best Overall

Endurance is our go-to pick for comprehensive coverage. Here are a few of the provider's standout features:

Endurance's coverage limits extend upwards to 15 years or 200,000 miles.
At that place are sample contracts online that you can review before reaching out for a quote.
Endurance offers six coverage levels that range from basic powertrain coverage to an exclusionary bumper-to-bumper warranty.
Endurance coverage is accepted at thousands of repair facilities nationwide, including dealerships, repair chains, and mom-and-pop shops.

For an in-depth await at this provider, read our Endurance warranty review. You lot can also click below to become a gratuitous, personalized quote from Endurance.

All-time Overall

Our Rating – iv.half dozen out of 5.0

Become Quote

(866) 990-3410

Manufacture veteran that handles your plan directly, from quote to merits

CARCHEX: Best for Used Cars

If y'all own an older, higher-mileage vehicle, CARCHEX may offer the best protection for you. Here are a few CARCHEX highlights:

You tin can choose from five coverage plans.
Term limits extend up to x years or 250,000 miles.
CARCHEX protects vehicles up to twenty model years old.
The provider offers sample contracts online for added transparency.
CARCHEX received an A+ rating from the BBB, reflecting its use of sound business practices.

For more information, read our comprehensive CARCHEX review. You can likewise click below to find out how much a CARCHEX warranty would cost for your vehicle. If you're trying to make up one's mind between CARCHEX and Endurance, read our Endurance vs. CARCHEX review.

Best for Used Cars

Our Rating: 4.iii out of five.0

Become Quote

(866) 950-7122

Pinnacle-rated provider with unmatched client service and affordable coverage

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. Nosotros identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best extended automobile warranty providers.

Affordability: A multifariousness of factors influence cost, then information technology tin can be difficult to compare quotes between providers. Our squad performs ongoing secret shopper analyses for dissimilar vehicles, mileages, warranty plans, and locations to give this rating.
Coverage: Because each consumer has unique needs, information technology's essential that a car warranty company offers an array of coverage options. We have into business relationship the number of plans offered by each provider, term limits, exclusions, and boosted benefits.
Industry Continuing: Our squad considers Ameliorate Business concern Agency (BBB) ratings, availability, and years in business when giving this score.
Customer Service: Reputable extended car warranty companies operate with a certain degree of treat consumers. Nosotros take into account client reviews, BBB complaints, and the responsiveness of the customer service team.