AMC vs warranty: what is the difference and which one do you need?
8 October 2026 • 4 min read • SaaS Techify
Warranty and AMC both promise service, but they are not the same thing. A warranty comes with the product and covers manufacturing defects for a fixed period. An AMC is a separate paid contract that takes over once the warranty ends, or runs alongside it for extra services. Knowing which one applies decides who pays for a repair.
The core difference
- Warranty: included in the product price, set by the manufacturer, usually 1–3 years, covers defects as per its terms.
- AMC: bought separately, priced by the service provider, usually renewed every year, covers the services listed in the plan.
Comparison at a glance
- Who pays – warranty: included in purchase; AMC: customer pays a contract fee.
- Start – warranty starts at purchase or installation; AMC can start after warranty ends.
- Preventive maintenance – rarely part of warranty; common in AMC.
- Renewal – warranty cannot normally be renewed; AMC is designed to be renewed.
- Parts and labour – defined by the warranty terms or the AMC plan respectively.
The right order of checks for a service request
When a customer raises a complaint, a service team should decide who pays in a fixed order:
- 1. Is the product inside its warranty period? If yes, service is free as per warranty terms.
- 2. If the warranty has ended, is there an active AMC covering this product today? If yes, the visit is covered by the AMC and counted against the plan.
- 3. If neither applies, the service is chargeable: share an estimate, get the customer's approval, then repair and invoice.
Common mistakes
- Treating an expired AMC as active because nobody updated the record.
- Giving free service after warranty because the technician did not check.
- Changing old service records when a contract is edited later. The coverage decision should be saved with the service request when it is created.
- Allowing two overlapping AMCs for the same product.
Which one do you need?
If you are a customer, keep the warranty for early life and consider an AMC for the years after, especially for equipment that your business depends on. If you are a brand, offer AMC right before the warranty ends, because that is when customers are most open to continuing cover.
Key takeaway
Warranty protects a new product; AMC keeps it running afterwards. The smoother your process for deciding between warranty, AMC and chargeable service, the fewer disputes you will have.