It is easy to understand how the terms extended warranty services and extended service plans can be misconstrued. Many people think that they are synonymous, that the terms are used interchangeably by manufacturers and third-party warranty and service companies. While this might be the case in some businesses, it is more often not the case. So, here in this article, we at TopTenREVIEWS will endeavor to pass along the main differences in these programs, while at the same time acknowledging that they are often very similar.
The bare essentials of the vast majority of extended warranty service plans are to extend the original manufacturer s warranty that tends to be included in the purchase price of the product. These extended warranties are primarily designed so that customers have coverage and protection against such common issues as product defects that were directly caused by the manufacturer often this includes materials and workmanship. Extended warranties tend to be an additional cost outside the purchase price of the item, and are made available to the end user or consumer by manufacturers, third-party warranty administration companies or by specific retail stores.
In a nutshell, extended warranty plans are created, sold and administered with the intent being to cover repair costs and provide a replacement product if it is deemed that the original product is damaged beyond what it would cost for an economical repair. Normally an extended warranty plan is not set up to cover any potential secondary products that might come with the main item. They generally do not cover regular, simple maintenance, what would be considered normal wear and tear, unintentional damage, or any losses that might occur from the aforementioned problems. The majority of extended warranty plans go into effect after the expiration date listed on the original manufacturer s warranty.
Now let s take a look at extended service plans and certain aspects of everything for which they normally provide protection and coverage. For the most part, the bare essentials of why extended service plans are in existence is to supply basic coverage to additional items and products that are not typically protected or covered by the original manufacturer s warranty or an extended warranty service plan. Some of these issues were discussed earlier and include damage caused by water or other liquids, normal wear and tear, and regular maintenance.
Some of the wide range of extended service plans available to consumers these days will make available some of the same or similar protection that you would normally come across if the customer was to insure the item. Another discrepancy between extended warranty service contract agreements and extended service plans is that the majority of extended service plans come with the inherent ability of becoming effective at the same time they are purchased by the consumer. In addition, these extended service plans usually come with the option of ending before or after the manufacturer s warranty. Above all, it is important for consumers to read and understand the terms and conditions offered at the point of sale.
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