Service contracts are important, and the stakes can be extremely high with the cost of today’s motorcycles and low inventory. Service contracts are not a necessary evil; they are a necessity. Read on for the top three reasons you need a service contract (aka extended warranty) for your ATV/UTV, personal watercraft or motorcycle.
1. Benefit from being part of a nationally recognized Service Contract provider.
With the lack of new unit inventory and the increased used sales on the rise, customers are forced to purchase vehicles with no remaining original factory warranty (OFW). This is where protecting your investment comes in. Look for nationally recognized providers that are accepted in the United States and our northern neighbors, Canada. Let’s take motorcycles for example. A recent stat from the Department of Transportation reported 8,410,255 motorcycles registered in the United States by private citizens and commercial organizations. That’s one out of every 36 people. Look for a provider that works with repair shops from some of the highest-ranking states with motorcycle owners like Iowa, South Dakota to New Hampshire.
In addition, read the contract, especially the exclusions and claims process sections. For consistency, nationally recognized providers must follow specific protocols. Most have a preauthorization process whereby if you don’t contact the service contract provider before the work is commenced, they are within their right to deny the claim. Always keep a copy of the contract and your registration page with you. Like the saying goes, “Don’t leave home without it”.
Bottom Line: Peace of Mind.
Having a service contract will mitigate costly and inflationary parts and labor charges. This alone can lead to massive financial savings. You avoid paying big bucks and the fall-out from the lack of technicians and pricey replacement parts, if you can even get them these days. We suggest using repair facilities that use a manufacturer’s suggested retail price (MSRP) on parts and manufacturer’s listed labor rates. Plus, the frustration caused by all the inconveniences. Look for service contract providers that are available 24/7 with the ability to speak to a live person, not a chat bot.
Speaking of those 24/7 emergency service calls (during Sturgis for example), making sure your deductible is low and not itemized per component repair is very important when looking to save money. Many providers offer help with roadside/seaside assistance such as towing, flat tire repair, battery jumps and the dreaded lost keys. The “key” here is making sure the benefits is at a low cost to you.
Since service contracts are not insurance, reviewing your exact roadside assistance coverage plan is critical before a trip. I bet you know someone who has double coverage between different policies or maybe there are better dollar amount allowances that you find benefit your lifestyle? Examples are paying for lodging or food spoilage…maybe you have that coverage in your home insurance rider, so make sure you don’t purchase an extended warranty where you pay for those benefits. Also, make sure the repair shop has the manufacturer’s suggested labor times/rates for that area of the country as they do vary from west to east. A reputable service contract provider will negotiate rates on your behalf.
A service contract is an investment against potential unexpected out of pocket costs. The dealerships have a vested interest in making sure that your powersports purchase is a win win. If you have an issue, they incentivize you to go back to the selling dealer by providing a very lucrative reduction in the deductible.
Lastly, service contracts might also save you money on potential issues. Often adjusters are aware of recalls or component failures that effect other parts; think of brake caliper recalls and service bulletins on electronic devices, the contract provider should direct you to the correct repair so there are not any issues down the road, giving you peace of mind. Regular maintenance service intervals can pinpoint potential issues too, leading to greater returns on your service contract investment.
Bottom line: Extended warranties are less costly than paying for repairs yourself.
3. Get better, faster service
If you have a service contract with USWC, repair shops that have worked with us know our preauthorization process; we negotiate rates on your behalf and pay the repair shop via ACH or credit card.
Having an advocate on your side within the service contract provider gets you out of being the “middle- man”. Let the provider do the negotiating. They should have claims adjusters available 24/7 to help you when you need it. Contract companies should be looking out for their bottom line and yours!
Getting a service contract included in the purchase of your motorcycle, ATV/UTV or personal watercraft might seem hard to justify. Remember the right service contract plan is created to mitigate future problems, save you money in the long run, and get you on the road faster. Service contract options come in many varieties, one of which is sure to suit your needs, no matter what vehicle you’ve purchased. Not all service contract/warranty companies are the same.
Shiny Side up!
United States Warranty Corporation, Cleveland Ohio, specializes in the design and administration of vehicle service contracts, since 1975. USWC offers an expansive range of coverage on new & used Motorcycles, Scooters, ATVs/UTVs, Personal Watercraft and Snowmobiles. Your dealer, being accepted to represent USWC, solidifies first class sales and service, providing a competitive advantage.