Buying a service contract is the first step in protecting your vehicle, but it’s also important to understand why a claim can be denied. Even after researching the company you buy from and the coverage plan you select, there are still a few things you should be aware of regarding common reasons claims are denied. Here are some guidelines that will help you get the most out of your service contract and help make the claims process smoother.

• Buying a pre-owned vehicle is a great way to save money. However, you also need to be aware that you may be buying someone else’s headache. If you purchase a pre-owned vehicle, make sure you get the complete vehicle history. If there was a problem with the vehicle before you purchased the service contract, it won’t be covered.
• Keep records of all maintenance procedures. If you have to file a claim, it may be necessary to prove that you did not precipitate the issue by neglecting regular maintenance. This is a requirement with nearly all service contracts. Use the manufacturer’s guide to stay current and only accept services from an authorized professional.
• Don’t abuse your automobile! Damage caused by rough driving or racing isn’t covered.
• Check your service contract before installing any new features on your vehicle. Modifications that aren’t recommended by the manufacturer may void your coverage.
• Take your car in as SOON as you notice a problem. If you continue to drive it and increase the damage, your claim may not be covered.
• Be aware of coverage limitations that exist in some contracts, such as mileage maximums or per-occurrence caps on claim payments.
• Natural disasters aren’t covered, so don’t file a claim for damage caused by tornados, floods, etc.

We know that having a claim denied can be a frustrating and sometimes confusing experience. At Protection Direct, we sincerely value all of our customers and are here to answer any questions you may have about claims or your specific coverage. Just call us or email feedback@protectiondirect.com for help.

This is a question we’re asked over and over again. Though they both provide automobile coverage, there are several key differences that some folks may not be aware of. We’re hoping this clears up the confusion once and for all.

A warranty is coverage issued at the time of purchase by the manufacturer and is included in the price of the automobile. It covers any damage, repairs or replacements needed for the vehicle through a certain date or mileage, after which it expires.

A vehicle service contract, commonly referred to as an “extended warranty,” is designed to take over once the manufacturer coverage expires. A vehicle service contract can be purchased when buying a used car from a dealer or later after the purchase from a third-party company—it’s important to note, however, that even if you buy from a dealer, the contract is actually “backed” by a third-party company that is unaffiliated with the dealer or manufacturer, so be sure to ask the dealer who is backing the contract to ensure they are reputable. Like health insurance, vehicle service contracts are designed to protect against unforeseen breakdowns and can help you protect your family’s budget with monthly payments.

Other key differences to note:

• Many service contracts are great for protecting older automobiles, whereas warranties are intended to cover new or certified pre-owned vehicles.
• Depending on the contract limitations, a service contract may allow for more freedom in choosing an auto repair shop, whereas a warranty often restricts repair services to the dealer.
• When purchasing a vehicle service contract, the customer can choose from different types of coverage to fit their specific automotive and budget needs, whereas you can’t pick and choose your warranty coverage to suit your situation.

Protection Direct offers a range of comprehensive and diverse service contracts designed with your car (and budget) in mind.

Buying an auto service contract is essentially making an investment. It’s safe to assume at some point your vehicle will require some significant and costly repairs. And when the time comes, will you be prepared?

Our service contracts are designed to save you thousands of dollars in auto repairs and at the very least offer peace of mind at a low monthly cost. These monthly payments become a consistent and manageable part of your budget, as opposed to writing out a large check unexpectedly when something breaks down. Additionally, without coverage, you may be tempted to put off certain repairs due to the cost, which could then cause even more problems down the line.

Protection Direct offers many different contract options to fit your budget and the level of protection you need. Read each contract carefully to make sure you understand what’s covered and what’s not to avoid confusion down the road.

Always keep in mind:

• Most service contracts require some general maintenance agreement, so make sure you read your contract and understand what your maintenance requirements are.
• Service contracts do not generally cover the normal wear and tear of everyday driving. The purpose of these contracts is to plan for unforeseen, major malfunctions.
• Many service contracts also have roadside assistance or towing benefits included to help offset costs associated with a breakdown. So if that is something you think you’ll need, ask for a plan that includes that coverage.