Service Contracts Continue to Grow in Popularity
Feb. 14, 2013—Consumers purchased more than 10 million service contracts in 2012 for both new and used vehicles, according to the Service Contract Industry Council.
Service contracts are becoming an increasingly popular choice as car repair costs rise; in 2012, those contracts covered 95 percent of annual claims filed, including normal wear and tear.
“The new technologies and complex components in today’s motor vehicles put consumers at greater risk for big out-of-pocket repair costs than ever before,” said Timothy Meenan, SCIC executive director. “Service contracts help consumers better deal with the unexpected, so they don’t have to worry when expensive unforeseen repairs are needed.”
Service contracts typically pick up after the manufacturer’s warranty expires, usually after three years or 36,000 miles.