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Service contacts, also known as extended warranties or extended service plans, are popular among consumers as a cost-effective way to protect electronic devices, consumer goods, appliances and new and used autos beyond the terms provided by the manufacturer’s or seller’s original warranty. Approximately 250 million are sold annually.

Service contracts offer flexible benefits that can include product repairs, replacement, technical support and emergency repairs and service. In addition to product and purchase protection, service contracts offer consumers convenience and peace of mind.

CONSUMER TIPS

  • Read the provisions carefully and become thoroughly familiar with all coverage and exclusions.
  • Carefully fulfill all obligatory responsibilities, such as proper handling, etc.
  • Keep the service contract paperwork, original receipt(s), and all maintenance records in a secure, easy-to-access location.
  • Utilize the service contract for all covered repairs to maximize the function, value and enjoyment of your products.