Commonly Asked Questions

What is a vehicle service contract?

• Vehicle service contracts are designed to protect consumers against unexpected, costly repairs to their vehicle. A vehicle service contract can be purchased by a consumer to cover the costs associated with vehicle repair, including parts, labor, and/or sales tax, for certain repairs or replacements that may be required after a manufacturer’s warranty expires. Different contracts have different coverage levels. A given individual’s coverage for any given repair is based on the terms and conditions of his or her vehicle service agreement.

 

How does a vehicle service contract work?

• With a vehicle service contract, the contract holder is covered when their vehicle experiences a mechanical breakdown or failure that is addressed by the vehicle service contract. The process varies throughout the industry, but, typically, you simply have the repair facility of your choice, employing an ASE certified technician, contact the provider’s claims center to report the claim prior to repairs. The claims representative then works with the service center to ensure that they receive their payment and that your vehicle is repaired. If you are unsure of where to take your vehicle for repair, you can typically contact the administrator of your service contract for guidance. The terms of the agreement should make clear that certain costs are covered, and certain costs may not be covered. In some cases, the contract holder may need to pay a deductible. The vehicle components that are specified for coverage in your agreement should be covered outright, provided regular maintenance has been properly and regularly performed as defined by the terms and conditions of your vehicle service contract.

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If my vehicle is used/pre-owned, do I qualify for coverage?

• Yes, we accept used/pre-owned vehicles as well as new. Please contact one of our representatives toll free at 1-844-384-4441, and we will further review your information.

 

Can I put more than one vehicle on the same service contract?

• No. Because each vehicle is different in terms of its mileage, age, overall condition, and repair history, each contract we create is vehicle specific. This ensures that each of your vehicles receive the right level of protection. We do, however, offer multi-car discounts.

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Why do I need a vehicle service contract?

• A vehicle service contract can offer peace of mind and several other benefits to car owners. Knowing that many of your repair costs will be covered can ease any tension about owning a car. Similarly, unexpected repair costs are minimized because of coverage – making it more affordable to own and maintain a vehicle. Your vehicle is a big investment and the longer it stays in great working condition, the more value you get from your investment. Vehicle service contracts are designed to protect your investment by keeping your vehicle in good, drivable shape without you having to incur a lot of extra, unexpected repair costs that you might otherwise have difficulty paying. Considering that the average hourly rate for mechanic labor is over $100 an hour, labor alone can be a smart reason to have an extended auto warranty. When you also consider how expensive parts and systems can be to fix, the value proposition for vehicle service contracts becomes that much stronger.

 

How does a vehicle service contract deductible work?

• Most vehicle service contracts come with a deductible. Typically, the deductible only needs to be paid one time on each repair visit, no matter how many different items are fixed.

 

Are auto manufacturers involved with the creation and sale of vehicle service contracts?

• No. Vehicle service contracts are typically not affiliated with the auto manufacturers in any way. They are typically backed by third party administrators and/or insurance companies.

 

What is the difference between a vehicle service contract and a manufacturer’s warranty?

• Warranties come with a product and are included in the purchase price. Service contracts, on the other hand, are agreements that are separate from the contract or sale of the product. They are separate either because they are made some time after the sale of the product, or because they cost the customer a fee beyond the purchase price of the product.