Some drivers prefer to purchase an extended service plan when they purchase their vehicle, since paying for coverage in advance can be much less expensive than paying to fix a vehicle later.
With extended service plans, different time and mileage quantities can be selected to expand coverage up to six years. Most extended service plans involve a preset deductible amount every time the vehicle is repaired.
Selecting an Extended Service Plan
When you choose your extended service plan, consider the following:
- Reputation of company providing the extended plan contract.
- Length and terms of coverage. Know what the extended service plan covers and doesn't cover. Find out if the contract covers both breakdown and wear and tear.
- Type of repairs covered.
- Type of company performing the repairs.
- Out-of-pocket expenses (who pays for the parts and labor?). You will want an extended service plan that pays the dealership directly.
- Cancellation and refund policy.