Pay for Repairs as Needed or Buy a Service Contract

If you have ever purchased a major appliance, it is likely you have also considered getting a service contract. To many consumers, getting a service contract is “buying peace of mind” from unexpected and costly repair issues. It’s always important to make an informed decision, so here are some key points to factor in when deciding to purchase a service contract:

  1. What is the cost? A service contract, like a warranty, provides repair and/or maintenance for a specific period of time. While warranties are included in the price of the product, service contracts cost extra and are sold separately. Prices for parts and labor can be pricey for repairs, so a service contract is often more cost effective in the long run. It’s estimated that a service contract that covers all appliances, air conditioning systems, electrical and plumbing costs the same as about 1.5 repair calls, so the cost of a service contract almost always is a cost savings!
  2. What is covered by the service contract? Service contracts are all different depending on the company that is writing them. Be sure to read the contract carefully and the fine print. If it does not list something as specifically covered, assume it is not. Total Appliance has a very simple policy that doesn’t include any deductibles or co-pays, is plainly written and easy to understand.
  3. What does the service contract provide that the warranty does not? The short answer is labor. Always compare the coverage of your warranty to that offered by the service contract to decide if it is worth the additional expense. Depending upon the warranty coverage, a service contract may or may not provide additional benefits other than labor expense.
  4. Is the product likely to need repairs? You may not benefit from a service contract if the covered items are unlikely to need servicing within the covered time period. However, it’s insurance against unexpected expenses that provides the peace of mind that is often the driving force behind a service contract purchase.
  5. Can you purchase a service contract as items age? You may be able to decide if you need a service contract after you have owned the appliance for some time. You can consider waiting until your warranty period expires before you buy a service contract in order to not be over-covered.
  6. Who is responsible for the contract? Make sure the company offering the service contract is reputable! Total has been serving the South Florida area since 1970.

Like almost everything else, purchasing a service contract is a personal decision. Although it’s not a necessity, a service contract can offer you peace of mind and savings in the long run.

If you decide it is the right decision for you, Total can help eliminate the unexpected and inevitable repair costs to your appliances, air conditioning system, electrical and plumbing issues. Our service contracts are fully customizable maintenance plans designed to fit your needs and budget.

Click here to learn more about our service contracts and view our specials for any current home service plan offers.