Five Tips for Buying Extended Auto Service Contracts

Buying an automotive service contract? If so, these tips for purchasing extended auto service contracts for a used vehicle will come in handy.

• Ask how many years your provider has been selling extended auto service contracts. A new vendor isn't necessarily deficient in any way, but a company that has been in business for a while has probably done right by consumers over time.
• Find out if your vehicle warranty can be transferred to a new owner when you sell your used car.
• Find out what labor rate is specified by the policy. If the contract's labor rate is below market rates, you may end up paying the difference.
• Ask questions about the refund and cancellation policy.
• Inquire as to whether the company's extended auto service contracts are insured by rated carriers and how those insurance carriers are rated (e.g. A rating, etc.).