Frequently Asked Questions


What's the most important thing I should Know about an extended service contract?

It is important to know the company that is promising to pay you if your car breaks down. A contract is only as good as the company that backs it. Some dealers offer service contract products other than the Ford warranty plans. For example, you can purchase Ford ESP plans (the only extended service contract backed by Ford Motor Company) or an extended service contract backed by an independent insurance company, which could be mistaken for Ford-backed protection. Be careful when considering independent plans. Here are some facts about independent companies:

  • Several large volume independent providers have gone out of business in the last 10 years. That means a large number of customers who had valid claims were not paid or received only partial reimbursements.
  • Independent providers profit only if their costs are less than what you paid for protection. Ford ESP's focus is on customer satisfaction, not extended service contract profits. Ford wants your next car to be another Ford!
  • On the surface, many independent coverages appear to look like a Ford warranty. The problem is they often require the use of inferior replacement parts, exclude important coverages like wear and tear, or make it extremely difficult to collect benefits.

What is an extended service contract?

It is a contract between you and the provider, who promises to pay for specified repairs of mechanical failures during the contract term (less a deductible, if any). It may also be referred to as an extended warranty or vehicle service contract. Here are some key definitions to help you in selecting a plan:

  • Obligor - a legal term for the company obligated to live up to the terms of the contract (e.g., manufacturer, dealer, or third-party company).
  • Administrator - the company hired by the obligor to handle claims, instead of doing it themselves (the administrator is not a party to the contract).
  • Breakdown - definitions vary from "failure of a component to work as it was designed to work in normal service" to "failure due to a defect in materials or faulty workmanship."
  • Normal wear and tear - when a part is not broken, but simply wears over time during normal use of the car.
  • Cause and effect - if a covered part fails and damages another part.
  • Deductible - the amount you must pay for a covered repair.
  • Surcharges - additional amounts you must pay to include coverage of certain items (e.g., All-Wheel Drive, high-tech components, on-board computers, seals and gaskets).

Do I really need an extended service contract?

An extended service contract is an important option. With the high technology built into today's cars, repair costs have risen dramatically and will continue to do so. With just one major after-warranty repair, the contract could easily pay for itself. Ford is proud of its reputation for reliability and superior engineering; however, anything mechanical could eventually require repairs.

Is there any benefit to taking advantage of an extended service contract opportunity while a car is still under warranty?

As with any other product, service contracts are subject to inflationary price increases. By purchasing a Ford extended warranty now, you can lock-in at today's cost. In addition, if you take advantage of extending your Ford warranty at the time of vehicle purchase, you can include the cost in your monthly finance or lease payment. Plus, you may be entitled to benefits in addition to the basic factory Ford warranty, such as car rental, lodging and meal reimbursement for warranty repairs required when you're traveling. Your plan can even include emergency roadside service for a jump-start, gasoline delivery, tire change, locksmith service, road hazard tire protection and lost key retrieval.

Why is a Ford extended warranty the best choice?

Ford views a Ford extended warranty as an investment in customer satisfaction, rather than as a profit maker. We know that a satisfied customer will likely be a repeat car buyer. Independent providers/insurance companies have no investment in your next car purchase. This philosophy really makes a difference in the quality of their service contract product, and even more importantly when it comes to honoring your claims.

Do I have any other payment option besides paying the whole amount at once?

Compared to the same genuine Ford ESP plans, saves the consumer on average nationwide $400 - $500.00 off the Regular Prices normally charged for such coverage. One of the reasons we are able to pass on this level of savings is by not offering monthly payment plans; with those type of plans come significant fees that the dealer must pay, this would cause us to raise our plan prices to cover that expense. Instead, we decided to forego those plans and pass on a larger upfront savings to the consumer.

What are the advantages of purchasing a Ford Motor Co. backed Extended Service Plan as opposed to purchasing one through a third-party seller?

The Ford ESP we offer is backed by Ford Motor Company as opposed to various third party insurance or re-insurance companies. Ford's objective is to keep a customer for life and they have a vested interest in your satisfaction that goes beyond the purchase of a single service agreement. So, they offer their plans with this in mind and strive for customer satisfaction by:

  • using genuine Ford or Ford remanufactured replacement parts
  • having a vast network of dealers throughout the U.S. and Canada ready to serve you with Ford Trained Automotive Technicians in their service departments
  • making claim payment both fast and easy for the customer as well as the dealer.

This is opposed to third party plans that may require use of "like parts", meaning any part that is similar or "like" the original part, which may mean used parts can be installed. They also may make the repair shop “jump through hoops” to receive a prior approval to repair or to receive payment for completed repairs. Sometimes they even make the customer pay up front and then require them to submit the invoice for a refund. Unnecessary hassles.