Guide to Auto service contracts

16 • “Wear and Tear” Coverage Some repair agreements exclude repairs needed due to “wear and tear.” However, many car repairs are needed precisely because a part wears out from a long period of use (or improper maintenance). Some experts believe that if a part is going to break on a newer car for some reason other than wear and tear (such as faulty design or manufacturing), it will usually break within the first few years. In those first few years, almost all new cars are covered by a free, new car warranty provided by the manufacturer. Any breakdown covered by a manufacturer’s new car warranty will not be covered by a VSC or MBI. Before buying a VSC or MBI policy, you should carefully review what is covered and not covered to see whether repairs needed because of wear and tear are covered or excluded. If wear and tear claims are excluded, you might want to consider buying a repair agreement that does not exclude such wear and tear claims. That way, if it is not clear whether a repair is needed due to wear and tear or for some other reason, it is more likely that the obligor will pay for the repair. Again, it is a mistake to assume that a repair agreement will cover every repair your car may need.