When purchasing a new product, such as a refrigerator, television, or phone, it is an investment in both convenience and functionality. However, as with any mechanical or electronic device, these products are susceptible to power surges, accidents, breakdowns and malfunctions. These unexpected issues can not only disrupt our daily routines but also put a dent in our wallets.
Extended service contracts provide a valuable shield to protect your wallet and mitigate the costly risks associated with product failures. When making a major appliance, technology or home product purchase, investing in an extended service contract can provide numerous benefits.
Benefits of Extended Service Contracts
Protection Against Unexpected Repair Costs: One of the significant benefits of extended service contracts is their ability to shield consumers from unexpected repair costs. Standard warranties typically cover a limited period, often one year, leaving consumers vulnerable once the warranty expires. Extended service contracts, on the other hand, extend the coverage for a longer period, providing assurance and financial protection against potential repairs or part replacements.
Convenience and Timely Repairs: Breakdowns tend to occur at the most inconvenient times, leaving us without crucial amenities or disrupting our daily routines. Extended service contracts offer the advantage of convenience and timely repairs. Typically, these contracts provide access to a network of authorized service providers who are qualified and experienced in repairing the specific brand or model of your product.
Coverage Extension for Wear and Tear: As products age, they naturally experience wear and tear, leading to increased chances of breakdowns or malfunctions. Extended service contracts often offer coverage extensions specifically for wear and tear issues that may arise beyond the standard warranty period. This means that even if your product encounters problems due to normal usage, you can have them repaired without incurring additional costs.
Additional Expense Protection: Some extended service contracts provide protection beyond simple repairs. Some plans for appliances like refrigerators or washing machines may provide reimbursement for food loss or pay for laundry service when appropriate.
Accidental Damage Protection: Some premium extended service contracts may cover accidental damage. Review your Terms and Conditions carefully as this may not always be included. But for some products, like cell phones or tablets it could include damage due to dropping them, for example. This coverage would definitely be beneficial to anyone who’s ever accidentally cracked their phone screen.
The decision to purchase an extended service contract for your products requires careful consideration so you can make an informed decision that aligns with your specific needs and circumstances.
As with any major purchase, it is important to understand the limitations of extended service contracts as well. Be sure to review the coverage provided by the manufacturer’s warranty to ensure the extended service contract provides additional coverage designed to maximize product protection. Also, make sure to evaluate the contract’s cost versus the potential repair and replacement costs to ensure making the best long-term financial decision.
At Centricity, we understand the challenges facing consumers making these important decisions. That is why, in cooperation with our retail partners, we have designed our extended service contracts to provide the maximum benefits and maximum unexpected cost protection to consumers over the life of their products.