Vehicles are very complicated pieces of machinery with many, many moving parts. It is estimated that most of today's cars and trucks have somewhere around 2,000 individual parts. Many of these parts are very high tech systems or components including computers, monitors, digital components, and the like. Below is an illustration of common repair costs as well as major component repair costs. Keep in mind, costs of repairs will continue to rise.
Vehicle Extended Service Contracts
(The Extended Warranty Jungle)...
Many people will own their vehicle far beyond the terms of the manufacturer's factory warranty. Without the protection and benefits offered by a Vehicle Extended Service Contract, vehicle owners may experience a costly mechanical breakdown. Not many people are prepared for the expense and being without their vehicle while the repairs are being performed.
With many Vehicle Extended Service Contracts, benefits will include a Rental Car, Towing to a repair facility, Overnight Expenses for meals and lodging if you are out of town, Emergency Roadside Assistance, Lock-Out Assistance, Battery Assistance and even Flat Tire Assistance.
Today's vehicles have many expensive items that can fail. Below is a list of repairs that are expensive in nature:
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There is some caution to be assumed by the purchaser of any Vehicle Extended Service Contract. Make sure that the insurance company that backs the contract is a reputable insurance company that has a top rating. You can also due diligence in making sure that this company has a proven track record of claims payment.
If you are worried about expensive repairs or about being without a vehicle while repairs are performed, then a Vehicle Extended Service Contract may be right for you.
"Should I buy a service agreement?" The simple answer is this: Let's say that you have a major repair that needs attention. It will require that the vehicle is in the repair shop for a week or so, The repair is an engine of transmission and will cost over $4000 in total. Will being without your car for a week or having to pay for a rental car plus the $4000 repair affect you, your family or your financial planning? If yes, then you should definitely look into the purchase of a vehicle extended service contract.