Insurance services and underwriting extended warranty contracts Forms for Phoenix
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FAQ
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.
Service contracts are sometimes called an extended warranty, but they're not a warranty as defined by federal law. They're sold by car manufacturers, dealers, and independent companies, you can buy them anytime, and prices and coverage vary widely.
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.
When it comes to the long-term cost of your car, extended warranties are generally a bad deal, says Gillis. In a Consumer Reports survey, 55% of people who purchased an extended warranty never touched it. Among those who did use the warranty, most saved less on repairs than they paid for the contract.