Service Contract is offered on home appliances, electronics, cars and other major appliances, to give you a relief from the hassles of repair. It is just like a purchase of peace of mind with the item whether you make your shopping from a retail store, online store, company outlet or a catalog, service contracts are usually there as an additional convenience. According to an estimation, about 50% buyers of new cars, multiple appliances and used cars make purchase of service contract, the cost of this contract varies with the duration, coverage and type of contract and usually the cost ranges from $50 to over $500.
Service Contract – Key Elements
The service contract is actually synonymous to warranty that gives you repair and maintenance for a specific time period. There is a difference between warranty and service contract. Warranty comes under the price of the product as per its label. Whereas for service contract customers has to pay some extra amount of money. It is good to check the offers of warranty before purchasing a service contract. In this way, customers can save a significant amount of money by just purchasing additional coverage to warranty card. Service contract usually covering particular parts of the product on some stipulations for repair purpose.
Service contracts usually never cover damages that take place because of failure in maintaining the product and misuse of the product. Moreover, it is the responsibility of the consumer to notify the company periodically about the problems in order to ensure the validity of the contract.
Free Service Contract Template
Here is preview of this Service Contract Template in MS Word format.
The Benefits of Service Contract
The benefits of service contract are dependent on the type of coverage that it offers. Usually service contract is an option for expensive repairs. Service contracts sometimes become useless when throughout the specified period of service contract the product work perfectly without any kind of repairing needs. Service contracts save customers from large repair fees as company offer low rates as compared to market rate. Moreover, service contract assures the quality of the product even after repair. They usually never charge them for repairing a part of the product within warranty period. The service contract is a relief and peace of mind for the customers. It helps to avoid tension that what if the product starts malfunctioning.
Things to Consider before Purchasing Service Contract
Read carefully to the coverage area, terms and conditions, turn out date and the cost of service contract. It is a responsibility of a customer if he/she want to enjoy great offers as part of their service contract. Not all service contracts are of the same kind and cost. Therefore in order to understand the nature of the contract one must give it a careful reading. If a customer requires explanation of any area of the contract, it is important to ask. Also if you notice absence of any particular area, speak up before its too late. It is good to purchase services contract when the warranty period overs because usually warranties carry lots of repair offers.