Insurance services and underwriting extended warranty contracts Forms for Oakland
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FAQ
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.
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.
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.
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.
While it may sound like a good idea in theory, extended warranties often come with a high price tag and don't necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.