Insurance services and underwriting extended warranty contracts Forms for Chicago

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FAQ

Service contracts are sometimes called an extended warranty, but they're not a warranty as defined by federal law. They're sold by car manufacturers, dealers, and independent companies, you can buy them anytime, and prices and coverage vary widely.

Service contracts and warranties both provide some element of repair or maintenance for a specific period of time. The main difference is that warranties are included in the purchase price and service contracts cost extra.

An extended warranty is actually an insurance policy on your vehicle, a safeguard against expensive, unforeseen repairs. It covers repairs for an agreed-upon period of time and miles. True warranties, though, are included in the price of the product.

EG Assurance's Vehicle Service Contract, or VSC, helps you relax by providing additional coverage on top of the factory warranty. Coverages are available to protect you against unexpected repair costs for covered breakdowns on new and pre-owned vehicles.

A service contract is sometimes called an extended warranty, but service contracts are not warranties. A service contract can help you fix or maintain your product for a specific time like a warranty. But, unlike a warranty, service contracts cost extra.

As a company, AUL can make money on the warranty by charging $500. And on average, this warranty is not a good financial decision since the repairs costs are only $200 expected vs. $500 cost. However, if you ARE the 1 customer who has a $20,000 engine failure, you would be ecstatic to pay the $500.