The Service Contract Industry Council (SCIC) highlights research that equips consumers and auto industry leaders with essential information to safeguard your valuable investments. A recent survey conducted by the highly regarded University of Michigan's Survey Research Center emphasizes the importance of vehicle service contracts in offering invaluable assurance. Here are some of the key findings:
What is a Vehicle Service Contract?
Vehicle service contracts, also known as extended warranties, are vehicle protection plans that shield owners from unexpected breakdowns and costly repairs. These contracts go beyond the manufacturer's warranty, providing confidence and security on the road.
Understanding the Value
The vast majority of respondents — 94% of purchasers and 89% of non-purchasers — reported that dealers explained service contract costs and features. This shows dealers' commitment to ensuring that customers understand their options. Additionally, 96% of respondents understood that purchasing a service contract was voluntary, highlighting the importance of informed decision-making.
Peace of Mind Through Easy Claims
Among purchasers who filed a claim under their service contract, the experience was reported as being easy and hassle-free. Most filers received the results they expected from having the service contract, demonstrating their value and reliability. This positive feedback highlights the ease with which consumers can protect their investments.
Satisfaction and Recommendations
A remarkable 76% of service contract purchasers expressed their willingness to purchase one again, while 77% would recommend a service contract to their family and friends. With only 6% expressing dissatisfaction, it's clear that service contracts offer genuine value and customer satisfaction.
Insights from Consumers
Respondents recognized the benefits of service contracts, citing the unpredictable nature of future events and the potential financial implications of unforeseen repairs. They emphasized that service contracts provide them with greater peace of mind, underscoring the importance of protecting investments in uncertain times.
These findings reinforce the importance of service contracts in safeguarding household finances related to their vehicle purchases. With a majority of purchasers understanding costs and features, coupled with high satisfaction levels, it’s clear that service contracts provide peace of mind and financial security. Whether protecting against unexpected repairs or ensuring budget stability, service contracts offer tangible benefits to consumers.
SCIC is committed to raising awareness and promoting transparency in the service contract industry, empowering consumers to make informed decisions. Remember, a service contract is not just a warranty — it's also your peace of mind.
For more information on vehicle service contracts and their benefits, visit https://go-scic.com/service-contracts/auto/