Insurance services and underwriting extended warranty contracts Forms for Sacramento
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FAQ
CarShield is not available in California. Are extended car warranties legal in California? Yes, with caveats. Sellers and administrators must be licensed, and only dealerships may sell VSCs, while only insurance companies may sell MBIs.
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.
Primarily, there are two types of extended warranties the one offered by the car manufacturers or their authorized dealerships and the after-market warranty offered by third-party vendors (third party would be an insurance or a warranty company).
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.
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 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.