![]() ![]() Independent providers/insurance companies have no investment in your next car purchase. We know a satisfied customer will likely be a repeat car buyer. Subaru views a service agreement as an investment in customer satisfaction rather than as a profit maker. Why is a Subaru-backed extended service agreement the best choice? It can also include computerized trip routing for up to 7 years.ĥ. Your plan can even include emergency roadside service for a jump-start, gasoline delivery, tire change, locksmith service and lost key retrieval. Plus, you may be entitled to benefits in addition to the basic factory warranty, such as car rental, lodging and meal reimbursement for warranty repairs required when you are traveling. In addition, if you take advantage of Subaru Added Security at the time of vehicle purchase, you can include the cost in your monthly finance or lease payment. ![]() By purchasing one now, you can lock in at today’s cost. Is there any benefit to taking advantage of an extended service agreement opportunity while a car is still under warranty?Īs with any product, service agreements are subject to inflationary price increases. However, anything mechanical could eventually require repairs.Ĥ. Subaru is proud of its reputation for reliability and superior engineering. With just one major after-warranty repair, the agreement could easily pay for itself. With the high technology built into today’s cars, repair costs have risen dramatically and will continue to do so. ![]() Do I really need an extended service agreement?Īn extended service agreement is an important option. Surcharges - additional amounts you must pay to include coverage of certain items (e.g., AWD, high-tech components, onboard computers, seals, and gaskets).ģ.Deductible - the amount you must pay for a covered repair.Cause and effect - if a covered part fails and damages another part.Normal wear and tear - when a part is not broken but simply wears over time during normal use of the car.Breakdown - definitions vary from “failure of a component to work as it was designed to work in normal service” to “failure due to a defect in materials or faulty workmanship.”.Administrator - the company hired by the obligor to handle claims instead of the obligor handling claims itself (the administrator is not a party to the agreement).Obligor - a legal term for the company obligated to live up to the terms of the agreement (e.g., manufacturer, retailer, or third-party company).Here are some key definitions to help you when selecting a plan: It may also be referred to as an extended warranty or vehicle service agreement. ![]() It is an agreement between you and the provider, who promises to pay for specified repairs of mechanical failures during the agreement term (less a deductible, if any). The problem is they often require the use of inferior replacement parts, exclude important coverages, such as wear and tear, or make it extremely difficult to collect benefits.Ģ. On the surface, many independent coverages appear to look like ours.Subaru wants your next car to be another Subaru! Subaru Added Security’s focus is on customer satisfaction, not extended service agreement profits. Independent providers profit only if their costs are less than what you paid for protection.That means a large number of customers who had valid claims were not paid or received only partial reimbursements. The 10 leading independent providers 10 years ago are all out of business today.Here are some facts about independent companies: Be careful when considering independent plans. For example, you can purchase Subaru Added Security ® (the only extended service agreement backed by Subaru of America, Inc.) or an extended service agreement backed by an independent insurance company, which could be mistaken for Subaru-backed protection. Some retailers offer service agreement products other than the Subaru plan. An agreement is only as good as the company that backs it. It is important to know the company that is promising to pay you if your car breaks down. What is the most important thing I should know about an extended service agreement? ![]()
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