Insurance services and underwriting extended warranty contracts Forms for Cook
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FAQ
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.
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.
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 auto warranty is a service contract that covers car repairs beyond the time period of a manufacturer's warranty. These warranties typically cover the costs to repair or replace electrical or mechanical problems not covered by manufacturers' warranties.
An extended warranty or vehicle service contract covers the costs of some types of repairs in addition to or after the manufacturer's warranty ends. Extended warranties and vehicle service contracts typically exclude routine maintenance such as oil changes and tire replacement.
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.