Automotive Digest: SCIC Educating Consumers on the Logic of Service Contracts
The Service Contract Industry Council (SCIC) estimates that consumers bought more than 10 million service contracts in 2012 for both new and used vehicles. Those service contracts covered 95% of annual claims filed, including repairs necessary due to normal wear and tear, providing coverage above and beyond a traditional manufacturer’s warranty. Today’s vehicles are made up of more than 10,000 components, yet the standard powertrain warranty covers only a fraction of them. The average new car has six to 20 computers that control everything from fuel injection and anti-lock brakes to airbag deployment. Those systems can be expensive to repair, due to both the high cost of parts and labor costs that can run as high as $250 an hour for specialized repairs on luxury vehicles.