1. 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 Subaru plan. For example, you can purchase Subaru Added Security^® (the only extended service contract backed by Subaru of America, Inc.) or an extended service contract 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 contract 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 like wear and tear, or make it extremely difficult to collect benefits.

2. 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).

3. 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. 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 contract opportunity while a car is still under warranty?

As with any other product, service contracts are subject to inflationary price increases. By purchasing it 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're traveling. Your plan can even include emergency roadside service for a jump-start, gasoline delivery, tire change, locksmith service, road hazard tire protection, lost key retrieval, and computerized trip routing for up to seven years.

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

Subaru views a service contract 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.

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

   You may choose from two different levels of coverage:

   • Classic Plan
     

     Classic plans cover nearly 1000 parts in all major component areas, including engine, transmission, drivetrains, front suspension, steering, brakes, electrical, cooling and fuel systems and air conditioning. Also provides towing and rental car reimbursement for covered repairs.

   • Gold Plan
     

     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, plus: 24-hour emergency roadside assistance*, $100 allowance for "Sign & Drive" dispatched towing, jump start, tire change, gasoline delivery, locksmith service, road hazard tire protection, computerized trip routing, dealer 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.

   • 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.
   • Provides service by factory trained technicians
   • Guarantees the use of genuine Subaru parts
   • Allows your car to be serviced at a quality Subaru dealer at a competitive price

3. What other benefits do Added Security^® contracts 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 pro rate 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 the Subaru Extended Service Contract plans, and alternatives sometimes offered to Subaru owners, click on Subaru Plans vs. Some Other Plans.

When you're ready to shop for the best extended service contract for your new Subaru, click on Extended Service Contract Comparisons. Then print the handy comparison form to use as a reference when discussing service contract details with your dealer or financing institution.

Subaru Plans vs. Some Other Plans

Contract Provisions	The Subaru Plans	Some Other Plans*
Wear and Tear	Fully covered	Often excluded from coverage
Heads and Engine Blocks	Fully covered	Only covered if damaged by internally lubricated part
Cause and Effect	Fully covered	Often excluded from coverage
CVJ Boots	Fully covered	Often excluded from coverage
MacPherson Struts	Fully covered	Cover MacPherson housing only
Replacement Parts	Genuine new or remanufactured Subaru parts	Parts may be used, rebuilt or generic
Claim Administration	Trained Subaru factory technicians	Administrator's personnel
Obligor	Subaru of America, Inc.	Dealer or insurance company
Rental Car Reimbursement	$35/day up to $175	May provide less coverage or none at all
Towing Reimbursement	$50 per occurrence	May provide less coverage or none at all
Trip Interruption	$500, if 50+ miles from home	If available, may be $200, if 100+ miles from home
Roadside Assistance	$100 dispatched towing, locksmith, gas delivery, tire change, battery jump, on-site minor repair, trip routing, lost key return, road hazard tire protection	Availability and benefits vary or may be offered for an additional charge
Transferability	$35 fee per occurrence	$35-$55 if transferable or only one time in life of car
Cancellation	Full refund first 90 days, pro rata thereafter, $25 fee	If cancelable, pro rata or short-rate method, $35 fee
Deductible	If applicable, one per repair visit regardless of the number of parts repaired	One per component repaired
Surcharges	Turbo	4WD, AWD, hi-tech, electronics, seals and gaskets

*Based on comprehensive marketing research of typical extended service contract providers.

How To Be A Smart Shopper

To be sure the extended service contract 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 contract and read it carefully. Reputable companies will be happy to provide one to you. Don't be misled by fancy brochures.

Extended Service Contract Comparison

		Added Security®	Other Plans
Is the extended service contract you are considering a genuine Subaru product backed by Subaru of America?		Yes
Subaru Added Security is the only extended service contract backed by Subaru of America, Inc.
Does it cover wear and tear?		Yes
It doesn't if it specifically excludes "low compression or gradual reduction in operating performance."
Does the contract define the term "breakdown" as, "the failure of a part to work as it was designed to work in normal service?"		Yes
If it specifies "defect in materials or workmanship," it doesn't cover wear and tear.
Does it cover cause and effect?		Yes
A repair of a non-covered part due to the failure of a covered part.
Does it cover constant velocity joint boots?		Yes
Ask about other "exclusions" that won't be covered by the contract.
Is rental car reimbursement available if the service department has to keep your car overnight?		Yes
Many programs require that the labor for the repair exceed eight hours to qualify for more than one day of rental coverage and allow only two days for parts delay.
Are only genuine Subaru replacement parts used for repairs?		Yes
Some non-Subaru plans allow the use of used parts.
Will you be charged just one deductible each repair visit?		Yes
Many programs charge a deductible for each component that needs repair, even if it is in the same repair visit.
Are AWD, high-tech components, on-board computers, seals and gaskets included in the base price?		Yes
Many programs charge extra to cover these items.

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 that I never heard of?
• A company that may not be in business when I need them?
• 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 it 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 (length of coverage, deductible amounts etc.). Your local Subaru Dealer would be in the best position to give you specific pricing for all of the available plans.

How long does the service contract 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 seven 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 zero miles.

What Should I do if I have a mechanical breakdown?

Try to get your Subaru back to your Subaru dealer, 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 which 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. It's up to you.

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

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