4 Things to Consider When Choosing a Vehicle Service Contract Provider

So, you’ve just determined that getting a Vehicle Service Contract (VSC) will help you save money and bring you peace of mind. But, since not all VSC providers are created equal, it’s important to weigh them against each other and factor in what they do and don’t offer, so you can make an informed decision about your auto repair coverage.

Here are the four most important things to consider when choosing your VSC provider:

1) Pricing model

Price is obviously one of the most important factors to consider when choosing a VSC that’s right for you. Aside from the monthly cost of the plan, does the VSC provider make you put money down upfront? Do they lock you in for a set duration like internet service providers do, or is it month-to-month pricing? When finding out the pricing structure, also determine whether the VSC allows you to cancel if you decide you no longer feel you need the service.

2) Contract transferability

If you sell your car while under VSC coverage, will you be stuck paying the premiums? Or is the contract transferable to the new owner? This is an important question for both parties. Obviously, you’d like to be relieved of your contract obligations once you’ve sold the car and no longer benefiting from its use. For a prospective buyer, coming into an already operable VSC coverage plan might also be a huge selling point. Be aware, though, that VSCs permitting transfer may require a fee.  

3) Repair facilities network

Let’s say your transmission fails and your VSC is there to cover it—great. But what if your provider won’t cover any mechanics near you? What if the nearest approved in-network mechanic is 100 miles away? Before you purchase a VSC, determine if the provider's repair facilities network is flexible or limited.   Some VSC providers permit claims on repairs at any licensed repair shop nationwide.

4) Additional support provided

Does a provider’s service only include paying for covered repairs? A strong VSC provider will offer additional support and benefits to their contract holders in the event of a breakdown. This may include 24-hour roadside emergency assistance, trip interruption coverage, hotel discounts, and rental car reimbursements.

Keep the desired answers to all these questions in mind as you comparison-shop to end up with a VSC that best fits your needs!