123 Auto Insurance Quotes

What are your responsibilities?

Much of what is covered or denied in a vehicle service contract is dependent on you and your understanding of your responsibilities as a contract holder.

You may be required to follow all the manufacturer's recommendations for routine maintenance, such as regular oil changes, tune-ups, and spark plug changes. In addition, you may have to prove you have maintained the vehicle properly by keeping detailed records, including receipts.

Negligence in routine or preventive maintenance, or misuse of the vehicle could nullify the coverage or void the contract.

What is the length of the contract and the cancellation provision?

If the contract lasts longer than you expect to own the vehicle, find out of it can be transferred to the new owner. You may be required to pay additional transfer and administrative costs associated with the changes.

Some companies will offer contracts with differing lengths of time. If you choose to trade in your vehicle every couple of years or so, you may opt for a shorter contract to fit your needs.

Unless your contract provides for a longer period, you may cancel a service contract covering a new motor vehicle within 60 days after you receive the contract and receive a full refund if you have not made a claim against the contract. You may receive the full refund on a used vehicle service contract if canceled within 30 days.

Most companies allow you to cancel your contract at any time. You will likely receive a pro-rated refund less any applicable administrative or cancellation fees.

The seller usually has 60 days after your purchase to deliver a copy of your contract to you and the contract should disclose your rights and responsibilities in regard to cancellation. If you choose to cancel your contract, you must do so in writing.

Who handles complaints against vehicle service contract companies?

Regulation of the vehicle service contract industry varies from state to state. In Texas, vehicle service contracts are regulated by the Texas Department of Licensing and Regulation. Refer to the laws in your area to determine if this type of company is required to be licensed or regulated by a state agency.

Regardless of your state's requirement, if you need assistance in resolving a dispute, contact your local Better Business Bureau, the state attorney general or a consumer protection office in your area.

Real-time tips has been created specifically for the Internet user. If you are considering doing business with a company advertising on the World Wide Web, look for the following:

A verifiable company address and telephone number
A privacy statement explaining how the company will use and/or protect your personal and financial information.
Participation in a recognized customer service program such as BBB OnLine.

Realize that each industry is different, but the primary factors for choosing a reliable company remain the same. Seek out companies who are willing to offer you information upfront and answer your questions fully.

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