Few of us go through life uninsured in the areas of health, life, auto and home. However, many people fail to protect themselves when it comes to insuring their second largest investment from mechanical breakdown.
(PRWEB) December 10, 2009
With all the recent media attention on the auto warranty and auto service contract industry, consumers are beginning to pay greater thought to car warranty products and services they are purchasing from service contract agents, warranty agents and auto dealerships. Service Protection Advisors has launched a new help center at 1-877-637-5488 to help consumers better understand the ins and outs of the various products and services available.
"Few of us go through life uninsured in the areas of health, life, auto and home. However, many people fail to protect themselves when it comes to insuring their second largest investment from mechanical breakdown," says Jeff Birmes, President of Service Protection Advisors.
Like the purchase of any product or service, warranty products and services call for consumer due diligence, particularly since the industry is plagued with consumer deception and lawsuits, such as a recent suit against many St. Louis area agencies. Birmes says the bad acts of a few have caused consumers to lose faith in what is a good, affordable and necessary insurance product.
Service Protection Advisors provides the information consumers should know about product warranties and auto service contracts, aka, service protection plans. Overall, the company believes both options have their place and that some coverage is better than none.
Auto service contracts generally provide the greatest level of coverage, whereas product warranties are generally limited to covering the major components of an automobile, such as the engine and transmission. This is also known as "stated component coverage" and can also come in the form of service contracts. In addition, product warranties are not subject to the same insurance regulations as service contracts and therefore do not always provide the same level of government involvement and regulation. This gives the contract provider greater legal wiggle room when determining whether claims should be honored or not.
Newer vehicles with lower mileage generally qualify for the most comprehensive service coverage, which is often as expansive as or more expansive than that provided by the manufacturer at the time of purchase. Also, most manufacturer extended programs are more limiting in terms of the age and mileage of a vehicle that qualifies. Service Protection Advisors recommends anyone who has a vehicle qualifying for expanded levels of coverage to avoid product warranties, limited service contract coverage and extended programs provided by the vehicle manufacturer unless they are equally comprehensive as that offered by independent providers.
"Much like the risk avoidance provided from health insurance, these products, even product warranties, allow a consumer, through Service Protection Advisors' month-to-month programs, to mitigate the risk of large one-time expenses by making small monthly payments," Birmes says.
Purchasing from a local dealer may not always be the best or most economical approach. Unlike agents or brokers, who typically represent a number of suppliers, dealers often lack a broad range of options. Therefore, the purchase may not be fitting to an individual circumstance. Also, dealers generally lack the ability to provide the low payment options many agents do.
Service Protection Advisors also advises consumers to look closely at the companies offering car warranty products and services. When considering a purchase, be sure to understand not only how the agent conducts business, but also how the administrator and reinsuring parties conduct themselves. Be sure to obtain a copy of the contract before making the purchase. Also, be aware that agencies requiring pre-payment for contracts bring additional risks. Administrators can be fully insured or be part of a risk retention group. Both can have varying levels of insurance coverage and can be rated differently by AM Best based on the financial conditions of the insurer. All these instruments provide consumer protection in the event of insolvency. Consumers can also review Better Business Bureau ratings on the selling agent and contract obligor for insight on the company's historical business practices. Consumers should be sure each circumstance matches their risk tolerance.
With Service Protection Advisors, users can not only take advantage of a broad range of programs, but can also make low monthly payments with the company's month to month programs.
For more information about car warranty options, auto warranty options or other products and services, contact Service Protection Advisors' help desk at 1-877-637-5488 for no-cost information on varying levels of coverage and contract circumstances. Service Protection Advisors takes the complexity and guess work out of any purchase and provides objective answers to any questions. Visit the company online at http://www.serviceprotectionadvisors.com.
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