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Service Contract Insurance

I recently purchased a Certified 2013 Chevy Equinox. I was persuaded to add a Service Contract Insurance, which I can cancel any time.
Do you think it is worth it? My husband is strongly against it.

I never buy an extended warranty. If I need it, I would be better off buying a more reliable car.

If you had the used car inspected by your mechanic before you bought it (as every used car consumer should), you already gave yourself the peace of mind an extended warranty buys.

I assume Service Contract Insurance is just another name for Extended Warranty, You did not say what the cost was, what the deductible is or what is actually covered and where the service work can be done. Those are just a few of the things to consider if you feel you spent your money well. Personally I don’t buy extended warranties on anything.

They can be different, service contract can cover maintenance.

I have a 2013 Equinox bought new. If you have the 2.4 4 cyl engine I would be inclined to keep the extended warranty if it is a Chevrolet warranty not a third party. If it’s a third party warranty I would cancel it. The 3.6 V6 had some teething problems but I believe by 2013 the issues were fixed.

Hopefully yours is fine, but I cannot emphasize enough to check your oil on a regular basis (weekly at least). Also, due to the shape of the oil pan the oil level will appear to be steady for the first 1500 to 2000 miles after an oil change. The lower the oil level on the dipstick the faster it will appear to drop.

The 2010 to 2013 Equinox 2.4 engines have problems with increased oil consumption due to the piston rings wearing out prematurely. There is also an issue with timing chain stretch. I noticed a small amount of oil consumption at 20k, I had an oil consumption test done (by the dealer) at 39k miles, by 42k it had used 2 qts of oil in 3200 miles. The dealer replaced the pistons, rings, and the timing chain(s) under warranty. So far, so good after 3500 miles

This thread provides more information

Google “Chevrolet Equinox Oil Consumption” for more info.

Good luck,

Ed B.

Texases, The OP used the word insurance so I read that as something other than a prepaid service such as prepaying for x number of oil changes at a reduced price. Or prepaid transmission service which the seller hopes you forget that you have it.

Yes, it’d be nice to know what all’s included/covered.

If you are on a fixed income, can afford it, but can’t afford the occasional problem, it might be for you. Since this is a CPO vehicle, it probably has a 100,000 mile warranty. That means the only things you get with the service contract are fluid and filter changes. If you can tell us exactly what the correct covers, we can offer better advice.

Thanks for all the comments. The Service Contract is not an extended warranty. The vehicle has only 32,000 miles and as a CPO vehicle it has 2 years/24,000 miles bumper-to-bumper, 6 yrs/100,000 miles power train warranty. The service contract I signed costs ~$50/month for 6 years or 100,000 miles. It will cover repairs such as electronics, and other repairs not covered after the bumper-to-bumper warranty expires and repairs not related to power train warranty. It is through AUL ( My understanding is that if a repair needs to be done and it is not covered by the warranties, AUL will pay the cost. Regular maintenance cost is not covered.

You asked for opinions , here is mine. That sounds like a foolish way to spend money.

Ah, not GM - run away!

So $600 a year to cover stuff that isn’t covered by either the government required emissions warranty
8 years or 80,000 miles
or the powertrain warranty
6 years or 100,000 mile
or the bumper to bumper warranty
An extra 2 years or 24,000 miles

So Just WHAT does the $1200 (for the first 2 years that EVERYthing is covered) do for you? Well, nothing it seems. Until year 3. By them they already HAVE $1200 of your dollars for expected repairs. Do you see where I’m going with this?

Dump the warranty, put $50 a month in a savings account and you’ve got it covered.

Attached shows what are covered by the service contract. I am wondering to those who are driving the equinox if they have encountered the problems listed under what are covered before 100,000 miles.

This is really good deal for the people selling this thing. Anyone else , not so much.

The CPO vehicle actually only has 12 months/12000 miles bumper-to-bumper warranty.
I appreciate all the comments. THANKS!

Besides its limited value, third party warranties like these can be worse than worthless, with difficulty getting coverage, and companies going out of business. I know nothing about this particular company, but the industry is rife with ripoffs.

The trouble with contracts like this, especially when they are not sold by the car manufacturer, is that the service contract company decides if your car problem justifies them spending their money to repair it.

Many of the “non manufacturer” contracts are well known for finding an excuse (in their interpretation of the fine print), for not paying for the repairs. Section F on page 2 of your contract seems to open the door for them in this area.

I would not purchase this. But if it makes you sleep better at night and you have the money, then go for it. Just understand the risks.

[Update] For $3600, this is an extremely expensive way to just “sleep better at night”. I would never advise anyone to get it.

Take the GM Certified Warranty (You already have that!), Cancel That Service Contract, And Be Sure To Bank That $600/Year Savings. It Should Cover All Your Maintenance And Repairs.

The GM CPO bumper-to-bumper warranty will let your savings grow a bit and then you will be service self-insured. That should buy the “peace of mind” you are looking for.

Who knows, if it works out, you’ll have money left at the end of 6 years to put toward a newer car or to buy yourself something nice!

That is $3600. You need to read the fine print. Many (most) of these have fine print that makes most repairs be not covered.

“My understanding is that” … you need to read the complete document and understand all of it (which may require a lawyer).

I’d run away also.

I have purchased several GM CPO Vehicles. The warranty is fantastic.
I have also bought GM service contracts (but never needed them).

I know when you buy a new car you are vulnerable to wanting to protect your new baby and having that “peace of mind” in case something unexpected happens.

I am on this forum quite a bit and bet that many other regulars here would agree with me, you would be better served protecting your investment by taking care of it.

Take the Owner’s Manual inside and read it over several days. Look at the maintenance schedule, too.

If you don’t know how in all certainty, have somebody who does, show you the proper way to check vital fluids under the hood of that new car, once a week when it’s been parked for several hours and the engine compartment is cool, starting this week.

Visually check the engine oil, using the dipstick. Add, but don’t overfill, if necessary to bring it to “full.” Important: Be sure you know where each fluid goes!

Visually inspect the coolant reservoir. Just look at it outside and you’ll see the coolant inside. It should have a “full cold” line. You want it above that.

Those 2 fluids are your car’s life blood.

You can visually inspect brake fluid, window washer fluid, and there should be a little dipstick for the power steering fluid.

Sounds like a lot, all that can be done in minutes. I check several cars this way every week-end.
It gives me peace of mind. Problems can be found early and corrected before they become major problems.

Transmission fluid (also a vital fluid) should be checked, but not necessarily, weekly. Usually fluid level is OK unless a leak is seen. Checking procedures are a little more involved.

Get in the habit of looking at the area where your car parks for any signs of a leak.
Check the vehicle once/week and it will love it.

I’d prefer a car monitored in this fashion over one protected by a contract.
An ounce of prevention is worth a pound of cure.
Happy motoring!