Are you planning to buy a car protection plan to protect you from excess car repair costs? Whether you are considering renewing your auto warranty or just thinking of changing your plan provider or dealership, there are various things you want to consider before you sign up for any plan. Here are some of the most important things to look for in a vehicle protection plan.
CarGuard Trevor Smith, a veteran in the industry, advises that anytime you are shopping for a car protection plan, it is necessary to research at least three reputable providers to help you narrow down to one that suits your needs and budget. A vehicle service contract protects car owners from expensive car repairs, which is different from a manufacturer’s warranty.
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Plan Coverage
One of the most important questions to ask before committing to any plan is what precisely the plan covers. The types of car parts covered under your plan depend on the terms of the contract. There are two common types of coverage options: exclusionary and named component coverage.
The former provides coverage to parts of your car that may suffer from mechanical problems during normal operation. However, some parts may be excluded from the coverage.
Named component coverage plans will specify the parts that will be covered and those that will not. The parts covered and the cost of coverage will significantly determine your purchase decision.
Remember that damages that may be due to improper maintenance and accidents will not be covered in many cases, so be sure to ask your provider which exclusions apply. Some of the parts that may be excluded include wiper blades, brake pads, tires, and shock absorbers.
Waiting Period
Upon buying a car protection plan, most providers require that the buyer waits for a specified period before the protection can kick in. This period should also determine your choice in a plan.
This requirement ensures the provider is protected from costs that may already exist, which could be why the plan had been purchased in the first place. However, the waiting period will vary from one provider to the next. If your car breaks down before the designated time comes, you cannot file a claim.
It is vital to choose a provider whose waiting period is forgiving yet reasonable. Remember that a shorter waiting period may also come with an added cost to the plan, so be sure to ask each provider about it.
Protection Plan Cost
The cost of a vehicle protection plan varies from provider to provider. Generally speaking, the plan’s cost will differ depending on the amount of coverage, the car’s age and model, previous driving history, and mileage.
It is not always super straightforward to tell how much a vehicle service contract will cost with so many factors. The best way to find the right coverage that is fairly priced is to shop around and secure multiple quotes based on your budget.
Additional Features
Vehicle protection plans sometimes come with extra features that make them more attractive. Some of the things you should check include a car rental service, roadside assistance, and a 24/7 customer service team.
If your provider has all of these at a small added cost, you might consider buying the plan to ensure maximum protection. CarGuard Trevor Smith recommends you take the time needed to find a plan that works best for you.