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.
Learn About Vehicle Service Contracts
Click below to browse our Frequently Asked Questions:
- What is a vehicle service contract?
- How does a vehicle service contract work?
- Why do I need a vehicle service contract?
- What does a vehicle service contract cover?
- What is an extended warranty?
- A warranty came with my car when I bought it. Why do I need a vehicle service contract? Isn't my car covered by the original warranty?
- What happens if I sell my car? Is my vehicle service contract transferrable?
- Can I purchase extensions and upgrades to my vehicle service contract?
- What vehicle upkeep am I responsible for in order for my service contract to remain valid?
- Where can I take my vehicle for repairs?
- If I get a vehicle service contract, can I still work with my local mechanic?
- Do I have to pay for my vehicle service contract in full at the time of purchase?
- What if I want to cancel my vehicle service contract?
- Can my claim amounts exceed the amount of money I paid for my vehicle service contract?
- How are vehicle service contract claims paid?
- What happens to the money I pay for my vehicle service contract?
- What should I look for when considering purchasing a vehicle service contract?
- How does a vehicle service contract deductible work?
- Why should I buy a vehicle service contract now? Especially if I still have a manufacturer's warranty.
- Are auto manufacturers involved with the creation and sale of vehicle service contracts?
- What's the difference between a vehicle service contract and a manufacturer's warranty?
- Will purchasing a vehicle service contract subject me to telemarketers and mailings from companies that may not be reputable?
- How does the Vehicle Protection Association (VPA) ensure that I, as a consumer, am protected from fraud, false advertising, or other exploitive practices?
- Does the VPA provide a list of trusted organizations and businesses?
- Who can I contact if I have a problem with my automotive service contract or its provider?
The topic of "car warranty scams" has received considerable media coverage. The VPA offers advice to consumers on how to buy a vehicle service contract and avoid any unethical providers.