Years of ownership set the clock for a service contract. Before you compare offers, write down how long you plan to keep the car, in years and in miles. Then check each contract against that plan, not against the sales sheet.
Find where the term ends
A contract term is usually stated as a span of time, a span of miles, or whichever comes first. Read the exact wording. Ask whether the clock starts on the day you buy the contract, on the day the factory warranty ends, or on another date the contract names. A late start can push the end later than it looks. An early start can end coverage before you expect it to stop.
Compare the term with your keep plan
Put the two side by side. If you plan to keep the car longer than the term runs, ask what happens on the last day. Some companies offer a renewal. Others stop coverage and leave you to shop again. Ask how a renewal is set, whether it needs a new inspection, and whether the car must still meet the acceptance rules on that date.
Check what happens if you sell or stop early
Cancellation and transfer rules decide what a shorter plan is worth. Many contracts allow cancellation with a partial refund based on time and miles used. The formula is written in the contract, not in the sales talk, so read it. Ask who receives any refund, whether the contract can transfer to a new owner, and what the new owner must do to keep it in force.
Watch the waiting period
A waiting period is the stretch after purchase when a claim will not be paid. It may be stated in days or in miles. If your keep plan is short, a long waiting period can use up a large part of the term. Check the waiting period against the term, then ask whether it applies to every covered part or only to some.
Questions to bring to the counter
Ask these in writing, or ask that the answers be added to the contract.
- When does the term start, and when does it end, in years and in miles?
- What happens on the last day of the term?
- Can I renew, and does a renewal need a new inspection?
- If I sell the car, can the contract transfer, and what must the new owner do?
- If I cancel, how is any refund worked out?
- How long is the waiting period, and does it apply to every part?
Where to check the published figures
Use the front-page table to see the companies that say they accept cars at high mileage, and the list of providers that accept older cars for age limits. A table is a starting point. The signed contract is the document that sets the terms for your car.