Things to Ask When Purchasing an Auto Service Contract

There are many Things to Ask When Purchasing an Auto Service Contract

Photo by CC user nrmadriversseat on Flickr.

Although new cars come with fairly comprehensive warranties, the day will come before you know it when that warranty is about to expire and you are looking ahead to potentially significant repair costs in the coming years. Now is the time when many people begin to think seriously about purchasing an auto service contract. Depending on the degree of protection and coverage you want to have, a service contract can be expensive – although not as expensive as an overhaul of your car´s major systems. Nevertheless, it is an important investment in extending the life of your car and protection against inevitable expenses, and industry experts like Omega Autocare will certainly advise you to do your research and make sure you find the best auto service contract for your needs.

Who Backs the Contract?

Any service contract is only as good as the company that is backing it. This means that you need to find out who is managing the contract and take responsibility for administering its terms. Research the company to be sure they are reputable. Find out if they are insured.


Be sure to understand what is covered by your contract and what is not. It is not always easy to make sense of the formal language employed in contracts, and especially if you are not familiar with the mechanical terms involved, it can be difficult to understand without some assistance. A reputable company will make the time to go through the agreement with you to be sure that there are no unanswered questions. Once you know what is covered, you should do your homework. Find out what sorts of problems you can expect with your and on what sort of timeline. Find out how much these repairs costs and know that they will only become more expensive with time. Armed with this information, you can make an informed decision about what is the best service contract for your needs

Length of the Contract

When you are considering the best contract length for you, you need to take into account how long you plan to keep your current car. You also need to understand what your options are if you decide to sell the vehicle before the end of the contract – can you transfer the contract to the new owner? Can you cancel the contract early, and if so, what is the penalty? You should also take into account the age of your car. It may be that for the next few years you want some peace of mind but don’t expect any major problems from your relatively new car. However, if you are planning to keep that car for the long-term, you may want to consider the increasing likelihood that you will need major repairs down the line. So – when thinking about the length of the contract, be sure to take this into account, and find out if you will be allowed increase your coverage as your car ages by upgrading your agreement or if you need to wait until your contract expires.

The most important thing to aim for is the find the right balance between the coverage you expect to need and the available plans. With a bit of research, you will be able to find the right plan for you.