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Five Tips for Buying Extended Auto Service Contracts

Buying an automotive service contract? If so, these tips for purchasing extended auto service contracts for a used vehicle will come in handy.

  • Ask how many years your provider has been selling extended auto service contracts. A new vendor isn't necessarily deficient in any way, but a company that has been in business for a while has probably done right by consumers over time.
  • Find out if your vehicle warranty can be transferred to a new owner when you sell your used car.
  • Find out what labor rate is specified by the policy. If the contract's labor rate is below market rates, you may end up paying the difference.
  • Ask questions about the refund and cancellation policy.
  • Inquire as to whether the company's extended auto service contracts are insured by rated carriers and how those insurance carriers are rated (e.g. A rating, etc.).

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