Three products that get sold under one name
Your carmaker's warranty comes with the car. A vehicle service contract is a separate purchase from another company that agrees to pay for listed repairs. In a few states, California among them, the same idea is sold as mechanical breakdown insurance.
Four names can sit behind one contract
- The seller took your money.
- The administrator handles claims with the shop.
- The obligor legally owes the repair money.
- The insurer, if any, backs the obligor.
The ad usually names only the seller. Naming the obligor earns points.
Five clauses to read first
- Waiting period. Often 30 days, sometimes with a mileage condition. A repair that starts inside it is usually yours.
- Cancellation. The full-refund window, then what follows: pro-rata refund, fee, or both.
- Deductible. Per visit or per repair, and whether $0 costs more.
- Exclusions. Wear items, pre-existing conditions, missed maintenance. Keep your receipts.
- Transfer. Whether the contract can go with the car when you sell, and the fee.
The factory clock comes first
While factory coverage runs, a service contract mostly duplicates it. Look up your own terms before you shop.
Confirm any factory term against your VIN with the manufacturer or a dealer. The clock starts at the vehicle's first sale, not when you bought it, and terms vary by model year, trim and market.
Click 4 Coverage's own guides cover what to do as factory coverage winds down and certified pre-owned coverage versus a service contract.
Sales moves that should end the call
A caller who claims to know your warranty status, a mailer dressed as an official notice, a price good only today, a contract shown only after you pay. The FTC has brought cases over these tactics. An honest seller lets you read first.