Void Signature Vehicle Service Contract For Free

True! A service contract is insurance but for the fact that virtually every state has explicitly declared it not to be insurance, which injects a lesser degree of regulation, taking it outside most rigors of insurance regulation.

Main Differences Between Car Insurance and a Vehicle Service Contract. As we've previously mentioned, car insurance companies will cover accidental damage and a vehicle service contract will cover issues related to mechanical failure. All services for each of these coverage plans will operate under that rule of thumb.

An auto service contract isn't the right choice for everyone. You should consider your existing coverage, your budget and your plans for the car. Not every service is covered, and for minor repairs, you may end up spending less by paying out of pocket. Since this coverage is optional, review multiple providers.

Some auto service contracts will extend the length or coverage of the warranty that came with your vehicle, and others will cover some maintenance tasks like scheduled oil changes. They typically don't cover damage that may occur in an accident or normal wear and tear to the vehicle.

(For the rest of this Guide, we will refer to the California Department of Insurance as CDI.) The VSCP is the obligor - the company that is legally required to pay the cost to repair your vehicle if it has a covered breakdown. A VSCP must meet many requirements in order to be granted a VSCP license by the CDI.

Service contracts, sometimes called extended warranties or maintenance agreements, are bought separately from the product. Similar to insurance policies, these contracts assure consumers that should something go wrong with a product, their investment is protected at a fraction of the cost of out-of-pocket repair work.

The main reason you might find a vehicle service contract worth it, despite it being an added cost, is that it protects you from expensive repairs. When parts like AC compressors or alternators break, they can be expensive to replace.