Insurance services and underwriting extended warranty contracts Forms for San Jose
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FAQ
Dealers will almost always recommend that you buy a service contract, and often will call it an extended warranty. They will tell you it's a good deal and will give you peace of mind knowing that if you have any problems with your car, it will be covered.
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.
Service contracts, sometimes called extended warranties or maintenance agreements, are bought separately from the product. Similar to insurance policies, these contracts assure consumers that should something go wrong with a product, their investment is protected at a fraction of the cost of out-of-pocket repair work.
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.
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 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.