Monday, September 7, 2009

How to Compare Service Contracts

Comparing service contracts can be a daunting task. Here are a few tips to assist you.

  • All Service Contracts have some sort of Trip Protection, Car Rental, Roadside assistance. Don't be fooled by companies that tout this is as if its unique to them.
  • Make sure you are only dealing with companies that have sell plans that are backed by A- or higher Insurance Companies. This will protect you from any companies that go out of business. The plan will be paid by the administrator.
  • Make sure that the plans are comparable. Some companies advertise $399 a year. This is misleading, because the plan is a 5 year plan so you would pay $1995. Always ask what is the Term (Contract Coverage Length), what is the mileage (how many miles the plan covers), what is the coverage. If you compare these three things then you can ensure your comparisons are accurate.
  • Be wary of companies that ask for your personal information before giving you a quote. There is no need for your email address or phone number.
  • Ask if the representative selling the policy is a licensed property and casualty agent. The best companies have licensed property and casualty reps.

If you follow these simple tips, you can rest assured that you are comparing companies and products accurately.

Friday, August 21, 2009

What does the AM Best or Standard and Poors Ranking Mean?

When you search online, consumers will find that all of the vehicle service contract companies refer to the Insurers rating. What is this rating? Why is it important?

This rating is established by an independent rating agency. Two of the largest and most respected are A.M. Best and Standard and Poors. A.M. Best ranks companies in two categories (Secure and Vulnerable). The ratings are as follows:

A++, A+ (Superior)
A, A- (Excellent)
B++, B+ (Good)

B, B- (Fair)
C++, C+ (Marginal)
C, C- (Weak)
D (Poor)
E (Under Regulatory Supervision)
F (In Liquidation)
S (Rating Suspended)

The ratings are pretty straight forward, if you find that the company is backed by an insurer with a rating below B+, then the consumer should take a closer look at that company before purchasing.

In case your wondering, is backed by a "A" rated provider.

Friday, July 24, 2009

Why Buy a Warranty Online?

In today’s economy, people are keeping their vehicles longer than ever. As a result the demand for vehicle service contracts are greater than ever. What is a vehicle service contract? A vehicle service contract is an agreement between the customer and service contract provider to pay for any automotive repair that is covered in the policy. This typically includes labor, parts, and other ancillary benefits such as towing, car rental, and trip reimbursement.
Since consumers are choosing to hold onto their existing cars for longer periods, the chances that their vehicle is no longer under factory warranty are high. The factory warranty is typically broken out in two parts: “Bumper to Bumper” and “Powertrain” Warranties. Typically Bumper to Bumper warranties are shorter in and cover all the parts of the vehicle outside of the powertrain. An example of coverage would be your sunroof, window motors, or air conditioning. Powertrain warranties provide coverage on the parts that “power” your vehicle like engine and transmission. A good resource to learn more is .
Vehicle service contracts are designed to provide consumers with coverage on both new and used vehicles that is similar to the original factory warranty. As we all know, Vehicle repairs can be extremely expensive and untimely! Vehicle service contracts prevent untimely and expensive repair bills through providing preselected coverage’s for these repairs. Vehicle Service contracts allow the customer to purchase coverage from
For years, consumers have been able to purchase warranties or service agreements from dealerships. The dealership often marks up these agreements exorbitantly. Why? Because they can. As we all know, purchasing a car is a daunting experience. Thanks to the internet, consumers are able to level the playing field through educating themselves about automotive purchases. As a result, dealers have scrambled to find ways to maintain their margins, this includes selling and marking up their Warranties.
Purchasing a warranty online allows you to save hundreds if not thousands of dollars. The internet allows for consumers to fully research coverage and costs before they make a selection. Like any purchase there are a few things to look for when selecting a company.
• Look for companies that are “A“ rated by A.M. Best. This ensures that your service contract is financially secure and will be honored throughout the term.
• Look to see if the URL is preceded by Https:// this means that they have encrypted the website and your information is safe.
• Reputable companies will not ask for your personal information to get a quote.
• Plans Should be Transferrable
• Plans Should be Allowed to be Canceled at Any Time

In summary, the Internet provides consumers with the ability to purchase the same service contracts that have historically only been available at dealerships at substantial discounts. Vehicle Service Contracts prevent expensive and untimely repair bills.