As if you hadn’t made enough decisions by the time you’ve chosen a new heater or air conditioner. Now, someone’s offering you a service contract, saying it will save you money. But, apparently, you have to spend money to save some, because what they’re offering will cost you a couple hundred dollars a year.

Is it true? Will buying a service contract for your new HVAC unit save you more money than it costs in the long run? Unfortunately, there’s no easy answer to that. But, if you consider your equipment and needs, and how much work you can do yourself, you can determine if the service contract will save you money or not.

A service contract is basically like a yearly subscription from an HVAC provider. It’s an agreement where they provide ongoing service year-round for a set fee. It can save you money by covering some or all of the costs for most maintenance and repair work.

However, different contracts cover different services, and they generally run anywhere from $100 to $500 a year. To make it worthwhile, you have to know your needs and what a particular contract will cover.

Here’s how to determine if a service contract is right for you.

What can I expect from a service contract?

Although each service contract is a little different, they generally fall into, 2 or 3 tiers.

Here is how our Service Plans break down:

• Provides annual maintenance of your equipment and priority same day service at the “front of the line”
• Annual Tune Ups (special filters additional)
• 15% discount on repairs not covered by warranty
• Lifetime warranty on non-disposable parts that we replace*
• Pay monthly and never receive a price increase.
• Most manufacturers warranties require regular maintenance. This plan will help you take full advantage of your warranty.

CN Club Affordable Protection Plan 

• Provides an annual safety inspection and an annual inspection of your equipment, safety devices and combustion of the heater and priority service.
• 15% discount on repairs not covered by warranty
• Lifetime warranty on non-disposable parts that we replace*

*Lifetime warranty doesn’t apply to disposable parts that require regular replacement like filters, pads, refrigerant, anti-freeze or parts that fail due to extreme conditions like flooding, salt air, lighting and power supply. The warranty does not include physical damage caused by animals, people or other outside forces, and it does not cover parts of the system in contact with water like circulators, zone valves, flow valves, piping drains, etc.

Will these services save me money?

For some people, a service contract saves them money because what the contract offers fits their needs. In other cases, you might be paying for services you don’t want, or will never use.

For instance: Are you handy, or at least a do-it-yourself kind of person? If so, you may be able to do a little of your own routine maintenance. DIY maintenance starts with swapping out an air filter on an indoor unit, or cleaning debris out of the fan and fins of an outdoor A/C condenser. Some people are comfortable taking apart a few components to clean them, or checking for worn out parts.

Routine maintenance saves you money. It ensures your unit always operating at peak efficiency. It also heads off major repairs if you replace a part before it breaks.

Next, check if your equipment is under factory warranty. If so, you may not need to have parts covered in your service contract until the warranty expires, but the warranty may require that you have your equipment regularly serviced by a professional. And, if your warranty is up and your equipment is old and constantly getting fixed, maybe it’s time to consider a new unit instead of more service.

Other things to consider: Do you have a rainy day fund for emergency home repairs? If not, a service contract that covers emergency repairs saves you interest fees on a large credit card charge, or late fees for other bills if you have to divert your budget for an unexpected repair.

Do you often have severe weather where you live? Does getting bumped to the front of the repair line mean you’re not suddenly shelling out for space heaters or window unit air conditioners, plus the extra cost of running them? These are the kind of situations that a Front of the Line Service Plan will help eliminate.

Knowing your circumstances and needs go a long way toward determining if a service contract will save you money.

How do I know I’m getting a good deal on my service contract?  

Let’s say you’ve decided the right service contract will save you money. Now all you have to do is make sure the service contract will do what it says it will. A little research goes a long way here.

First, read up on the provider that’s offering you the contract. If priority service is a priority to you, check out when they’re open and if they have after-hours service. You want to be sure they can get someone out to you ASAP if that’s what you want from your contract.

While you’re doing your research. Check out their reviews. Are they reliable? Do they do good work without needing to come back fix things? And, here’s a big one: Does the company offering your service contract have a reputation for somehow “always” finding something wrong that’s not covered, every time they come out for routine maintenance? If so, maybe the same basic contract with a different provider is the way to go.

Here at Comfort Now by Bob McAllister, we are big believers in a Service Contract. We handle emergency service, have fantastic reviews, and will never recommend anything you don't need. Check out what people are saying about us here!

There’s a lot to consider when determining if a service contract will save you money. So, do your research on the contract, the provider, and what you need before you sign up. You may discover that it’s a waste of time. Or, it might turn out to be worth every penny — and then some.