Vehicle Warranty and Service Contracts...
New vehicles come with a manufacturer's "limited warranty". There are requirements for keeping the warranty in effect and reasons why warranty claims get declined. New and used car dealerships sell extended warranties, ESPs and service contracts. There is also an independent market for these products available online or by telephone.
Know when and how a warranty, ESP or service contract will cover a repair and the situations where coverage will be denied or disputed. Before you buy or decline an extended warranty, ESP or service contract, always read the fine print. Understand the items covered, any deductibles and the pricing for these legally binding products.
Weigh whether an extended warranty, ESP or service contract is worthwhile for its cost. Some buyers choose to "self-insure", assuming responsibility for repairs on the vehicle after the manufacturer's warranty has expired. This guide helps demystify factory and extended warranties, ESPs and service contracts.