1. What is the most important thing I should know about an extended service agreement?

It is important to know the company that is promising to pay you if your car breaks down. An agreement is only as good as the company that backs it. Some retailers offer service agreement products other than the Subaru plan. For example, you can purchase Subaru Added Security^® (the only extended service agreement backed by Subaru of America, Inc.) or an extended service agreement backed by an independent insurance company, which could be mistaken for Subaru-backed protection. Be careful when considering independent plans. Here are some facts about independent companies:

• The 10 leading independent providers 10 years ago are all out of business today. 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. Subaru Added Security’s focus is on customer satisfaction, not extended service agreement profits. Subaru wants your next car to be another Subaru!
• On the surface, many independent coverages appear to look like ours. The problem is they often require the use of inferior replacement parts, exclude important coverages, such as wear and tear, or make it extremely difficult to collect benefits.

2. What is an extended service agreement?

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

• Obligor — a legal term for the company obligated to live up to the terms of the agreement (e.g., manufacturer, retailer or third-party company).
• Administrator — the company hired by the obligor to handle claims instead of the obligor handling claims itself (the administrator is not a party to the agreement).
• 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., AWD, high-tech components, onboard computers, seals and gaskets).

3. Do I really need an extended service agreement?

An extended service agreement 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 agreement could easily pay for itself. Subaru is proud of its reputation for reliability and superior engineering. However, anything mechanical could eventually require repairs.

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

As with any product, service agreements are subject to inflationary price increases. By purchasing one now, you can lock in at today’s cost. In addition, if you take advantage of Subaru Added Security 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 warranty, such as car rental, lodging and meal reimbursement for warranty repairs required when you are traveling. Your plan can even include emergency roadside service for a jump-start, gasoline delivery, tire change, locksmith service and lost key retrieval. It can also include computerized trip routing for up to 7 years.

5. Why is a Subaru-backed extended service agreement the best choice?

Subaru views a service agreement as an investment in customer satisfaction rather than as a profit maker. We know 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 agreement product — even more important, when it comes to honoring your claims.

1. What does an Added Security^® extended service agreement cover?

You may choose from two different levels of coverage:

• Classic

  Classic plans cover nearly 1,000 parts in all major component areas, including engine, transmission, drivetrains, front suspension, steering, brakes, electrical, cooling and fuel systems and air conditioning. They also provide towing and rental car reimbursement for covered repairs.

• Gold Plus

  Gold Plus plans include all Classic plan coverage plus hundreds more parts. In fact, they provide essentially the same bumper-to-bumper coverage as the basic factory warranty. Only a few maintenance items and body parts are not covered. The Gold Plus plan also reimburses for lodging and meals when a breakdown interrupts your out-of-town travel and provides 24-hour emergency roadside assistance*, $100 allowance for “Sign & Drive” dispatched towing, jump start, tire change, gasoline delivery, locksmith service, computerized trip routing, retailer locator service and travel assistance.

2. Does Subaru also have a maintenance plan?

Yes, you can choose the maintenance plan best for you:

• 2 or 3 years/30,000, 36,000, or 45,000 miles
• Mileage intervals — 3,750 or 7,500

These plans are especially attractive if you lease your Subaru. You can include the cost in your lease payment. Then with the maintenance plan, your only auto expense may be at the gas pump! And the roadside assistance package is included at no extra cost and does the following:

• It enables you to lock in the cost of the scheduled maintenance required to keep your basic factory warranty in force and your car in tip-top running condition.
• It provides service by factory trained technicians.
• It guarantees the use of genuine Subaru parts.
• It allows your car to be serviced at a quality Subaru retailer at a competitive price.

3. What other benefits do Added Security agreements include?

• Enhance the resale value of your car. Any remaining coverage can be transferred to another private owner (must be transferred within 30 days of purchase). Or you can cancel your coverage and apply for a prorated refund.
• If you choose a plan with a deductible, you will pay it only once for each repair visit. Some other plans charge a deductible for each different component repaired during the same visit.
• Added Security^® protects your investment and provides an inflation hedge on future repairs. As with other goods and services, the cost of parts and labor will increase.

To research details of Subaru’s extended service agreement plans, and alternatives sometimes offered to Subaru owners, click on Subaru Plans vs. Some Other Plans. When you are ready to shop for the best extended service agreement for your new Subaru, click on Extended Service Agreement Comparisons. Then print the handy comparison form to use as a reference when discussing service agreement details with your retailer or financing institution.

How to Be a Smart Shopper

To be sure the extended service agreement you buy will do what you need it to, make sure it is a genuine Subaru product. Ask to see an actual sample of the agreement and read it carefully. Reputable companies will be happy to provide one to you. Do not be misled by fancy brochures.

Questions to Ask Yourself:

Who do I want to be responsible for protecting me against unexpected repair costs?

• A broker, insurance company or a third party I have never heard of?
• A company that may not be in business when I need it?
• Or is the best choice to be covered by Subaru?
• Who truly cares how happy I am with my Subaru or if I ever buy another one?
• A broker, a so-called administrator or an insurance company?
• Or would I rather have Subaru on my side?

Subaru cares about you!

What vehicles are eligible for Added Security^®?

Added Security was created exclusively for Subaru vehicles. Any Subaru model that is still covered under Subaru of America’s basic warranty is eligible for Added Security unless the vehicle is used commercially or is equipped with a snowplow.

What is the cost of an Added Security plan?

Plan costs vary depending on the terms of the plan (e.g., length of coverage, deductible amounts, etc.). Your local Subaru retailer will be in the best position to give you specific pricing for all of the available plans.

How long does the service agreement coverage last?

You can select the length of coverage that best suits your needs. You have a choice between eight different plan terms. You can even choose a plan that covers your Subaru until it is 10 years old or has accumulated 100,000 odometer miles, whichever comes first. The plan term is calculated from the start of the factory warranty and at 0 miles.

What should I do if I have a mechanical breakdown?

Try to get your Subaru back to your Subaru retailer, unless further damage would result from driving it. Otherwise, you can call our toll-free claims number for assistance. Added Security is honored throughout the United States and Canada.

What should I do if I need roadside assistance?

If your plan includes roadside assistance coverage, Cross Country Motor Club will send you a separate package that will provide a 24-hour toll-free emergency number to call, as well as detailed information about the many other services available to you.

Will I have to pay a deductible?

No! You can choose a plan with a zero deductible. However, plans are available with a $50 or $100 deductible — the amount is up to you.

What if I sell my Subaru before the Added Security coverage expires?

To enhance resale value, you can transfer any remaining coverage to a subsequent owner for a small service fee. Or, if you prefer, you can cancel your coverage and apply for a prorated refund.