What should a consumer consider when contemplating a service contract?
• Whether the warranty that comes with your car already covers the same repairs that you would get under the service contract or whether the service contract protection begins after the warranty runs out. Does the service contract extend longer than the time you expect to own the car? If so, is the service contract transferable or is a shorter contract available? • Whether the vehicle is likely to need repairs and their potential costs. The value of a service contract is determined by whether the cost of repairs is likely to be greater than the price you pay for the service contract protection. • Whether the service contract covers all parts and systems of the car. Check out all claims carefully. Claims that coverage is “bumper to bumper” may not be entirely accurate. • Whether there is a deductible required, and if so, consider the amount and terms of the deductible. • Whether the contract covers incidental expenses, such as towing and the costs of a rental car while your car is being
