![]() Read the fine print in these contracts, as we did for more than a dozen, and you'll find so many excluded repairs that you'll wonder if anything is covered. Our surveys indicate that, on average, car owners are more satisfied with repairs done by independent shops. Service contracts marketed by automakers through their dealership franchisees - though generally the subject of fewer complaints - usually require that you use the dealers' repair shops. Get a repair without first obtaining authorization and you're likely on your own. Instead, claims are handled by third-party "plan administrators." If you need a repair, you contact the administrator, and it decides whether to pay for it. With some companies, paying more upfront lowers or eliminates per-repair deductibles, which are usually around $100.ĬarShield and many other sellers don't provide the coverage themselves. Generally, the more you pay the broader your coverage. But most of the plans we checked cost around $3,000 to $4,000. ![]() We found one plan priced at nearly $6,700 and short-term plans for around $2,500. Prices for plans vary depending on the breadth of coverage vehicle make, age, and mileage and number of years (the longest terms are seven years or 100,000 miles). These companies commonly use misleading marketing to scare consumers into paying thousands for their products and then, when customers' vehicles need repairs, go to great lengths to avoid paying for them. Our review of auto-service contracts from dozens of sellers indicates their products are especially lousy buys. These plans are highly profitable for the companies that sell and administer them but are usually awful deals for consumers. Judging by all the fine print gotchas and the staggering number of consumer complaints these plans generate, Twin Cities Consumers' Checkbook concludes they're not.Ĭheckbook has long advised against purchasing any type of mini-insurance policy, including home warranties, service contracts for electronics, trip-protection plans and others. “Overall, new car dealers rated considerably lower than independents,” in addition to being considerably more expensive, he said.Whether it's rapper-turned-actor Ice-T or ESPN's Chris Berman hawking plans from CarShield or robocalls warning that your car's warranty is about to expire, you've likely experienced a sales pitch for a vehicle-service contract, also known as an extended warranty.Īnnoyances aside, you're probably wondering whether these plans are worth the cost. area.Īdditionally, if a claim is going through your insurance or through another person’s, “make sure you take the car to a shop of your choosing, because you’re going to likely need that shop in your corner to argue to the insurer about getting the repairs made well,” he advised.Īnd don’t think that a trip to the dealer is a silver bullet. He also said there are huge differences in quality and price from shop to shop in the D.C. “A lot of shops, they do great work for their customers, but we found that many shops have high, high percentages of unsatisfied customers,” Brasler said. Those parts can be fine if the shop can reassure you that their quality is on par with factory originals, Brasler said.Įven aside from shortages and delays, drivers seeking out body repairs have their work cut out for them. He added, “These days a lot of shops, in order to cut down on the time because of these big delays, are either seeking aftermarket parts or seeking used parts.” “But it’s almost equally important these days to get a time estimate, because some shops seem to be doing better than others at getting cars fixed quickly, as opposed to months upon months of delays.” ![]() “The biggest complaints we get about body shops are delays and shoddy workmanship,” said Kevin Brasler with Consumers’ Checkbook, “and these days the delays are severe.”Ī major issue is parts shortages because of ongoing supply chain crunches.īrasler says it’s important to get a cost estimate, as always. The pandemic is complicating the process of getting your banged-up car looking new again. ![]() Business & Finance Click to expand menu.
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