Every service contract is sold against a car that already has some protection, or none at all. Before you look at the total, look at the start point. The contract's start clause decides whether you are buying protection for a period the factory already covers, or buying protection for the stretch after the factory plan ends. Those are very different purchases, and the sales conversation rarely makes the difference obvious.

Where the contract starts

Some contracts take effect on the day you buy. Others are written to begin only when the manufacturer's basic or powertrain plan runs out. Some fall in between, with a waiting period that overlaps part of the factory term. Read the start clause itself, not the summary on the sales form. If the document says coverage begins on purchase, you are paying for overlap with the factory plan. If it says coverage begins later, you are paying for a gap that the factory plan will not fill.

Ask the seller to point to the sentence in the contract that defines the start event. If the answer is a verbal explanation, ask for it in writing before you sign anything.

Why overlap changes the price

A provider sets its price around the risk it takes on. If the contract begins while the factory plan is still active, the provider may be covering the same parts the manufacturer already covers for a period. That does not automatically make the contract a bad purchase, but it does mean the price should reflect the overlap. A quote that ignores the remaining factory plan is worth questioning, and you should ask the seller directly how the quote treats it.

Overlap also matters when you are comparing offers. Two contracts with the same listed coverage can have very different start points. One may be paying for protection you already have. The other may leave a gap you did not notice until the car needed a repair.

Find the factory plan's end point

Before you agree to anything, write down the factory plan terms for your specific car. Look for the end of the basic plan and the powertrain plan, each stated in time and in mileage. Whichever limit comes first is the one that counts. Manufacturers also sometimes run separate plans for specific components, such as emissions parts or the battery system on some models, and those can end on different schedules. Confirm the terms with the manufacturer or the dealer's service department, and keep the answer.

For a used car, the factory plan may already be finished. In that case the question is not overlap but whether any remaining manufacturer plan exists at all. Check that before you assume the contract is the only protection on the vehicle.

Questions to ask before you agree

  • Does coverage begin on the purchase day, or when the factory plan ends?
  • Which parts does the factory plan cover that this contract also lists?
  • If the factory plan pays first, does the contract pay the remainder, or does it wait?
  • Where in the contract is the start event defined, and can you have that page marked?
  • If the quote was built without reference to the factory plan, can the seller explain why?

Where to check the published terms

Providers that post a sample contract let you read the start clause before a salesperson is involved. The list of providers that publish a sample contract on this site is a good place to start, because it tells you which contracts you can read on your own time. The methodology page explains how the figures on this site are scored, but the start clause that governs your car lives in your own contract, not in a table.

The point of the check is simple. Know the day the factory plan ends, know the day the contract begins, and decide whether the space between them is protection you need or a charge for something you already have.