Insurance services and underwriting extended warranty contracts Forms for Fulton
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FAQ
An extended warranty is actually an insurance policy on your vehicle, a safeguard against expensive, unforeseen repairs. It covers repairs for an agreed-upon period of time and miles. True warranties, though, are included in the price of the product.
An extended warranty or vehicle service contract covers the costs of some types of repairs in addition to or after the manufacturer's warranty ends. Extended warranties and vehicle service contracts typically exclude routine maintenance such as oil changes and tire replacement.
EG Assurance's Vehicle Service Contract, or VSC, helps you relax by providing additional coverage on top of the factory warranty. Coverages are available to protect you against unexpected repair costs for covered breakdowns on new and pre-owned vehicles.
Service contracts and warranties both provide some element of repair or maintenance for a specific period of time. The main difference is that warranties are included in the purchase price and service contracts cost extra.
While it may sound like a good idea in theory, extended warranties often come with a high price tag and don't necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.
A service contract is sometimes called an extended warranty, but service contracts are not warranties. A service contract can help you fix or maintain your product for a specific time like a warranty. But, unlike a warranty, service contracts cost extra.