The Top 4 Questions to Ask When Purchasing a Vehicle Service Contract
Are you thinking about purchasing a vehicle service contract (VSC) to help protect you from unexpected, covered auto repair bills?
Here are some questions to ask before deciding which VSC would work best for you and watch our new video to learn more:
1. What is and isn’t covered?
VSCs differ based on the provider. Typical VSCs pay for reasonable costs to repair or replace covered parts within a specified time period/miles driven. Before you decide which VSC to purchase, be sure to read the contract carefully so that you understand what car parts and systems are covered, what your deductible is, and how to select a licensed repair facility you can use should your car need to be repaired. Also, keep in mind that VSCs are not the same as car insurance, and they do not cover collision repairs and routine maintenance.
2. Is a down payment or fee required before my coverage begins?
Be sure to ask what if any down payments or up-front fees are required before your coverage becomes effective. While some plans require up-front payments, Toco’s vehicle service contracts do not. Make your first monthly payment and after any specified waiting period, your VSC coverage will be effective.
3. Can I pay as I go for my VSC and cancel at any time, or am I required to pay up front for the period covered?
You never know how long you will own your vehicle, so be sure to ask if you have to pay for the period covered by the contract up front or if a pay as you go plan is available. If you are required to pay up front, consider how difficult it may be to cancel the contract or get a refund for the unused portion of your VSC should you sell the vehicle before the contract ends. With a “pay as you go” VSC, such as the ones offered by Toco, you can cancel at any time, but an administrative fee will apply if you cancel after filing a claim or more than 60 days from the date of purchase.
4. Will different companies be involved in my VSC transactions?
Toco and its affiliated companies eliminate unnecessary third parties, providing our customers with a single point of contact for fast, responsive, courteous customer service. From our customer service professionals to the contract administration team that handles all payments, paperwork, and claims administration - Toco’s “all-under-one-roof” approach simplifies the sign-up and claims process. Toco is an experienced and trusted solution for direct-to-consumer VSCs, with product coverage backed by an AmTrust Financial insurance carrier. Other VSC providers, however, may offer contracts where many unrelated companies are involved.