Auto Plus Service Agreement
Also beware of unscrupulous dealers who may try to include an auto service contract in your loan without your consent. If you see a fee for a service agreement that you didn`t accept, tell the merchant to enter into it before signing the credit agreement. Many car repairs are covered by the New Car Warranty, which comes automatically and free of charge when you buy a new car. New car warranties are issued by the car manufacturer. They vary in their duration and in the rooms they cover. Most new car warranties cover the most important parts of your car for several years. If a covered portion breaks during the term of a new car warranty, the warranty (no VSC or MBI policy you brought) will pay for the repair. Severely defective new cars may be covered by California`s „Lemon Law.“ The Lemon Act does not apply to used cars. For more information on the Lemon Act, see the „Resources“ section of this guide. Few service contracts cover all repairs. Regular repairs to parts such as brakes and clutches are usually not included in automotive service contracts.
The best advice: If an item isn`t mentioned, you`re assuming it`s not covered. Beware of absolute exclusions that refuse to cover themselves for any reason. For example, if a covered part is damaged by an uncovered part, the claim may be denied. Or if the contract states that only „mechanical failures“ are covered, problems caused by „normal wear and tear“ can be excluded. If the engine needs to be disassembled to diagnose a problem and the mechanic discovers uncovered parts in the process that need to be repaired or replaced, you may have to pay for the work associated with demolishing and assembling the engine. Some auto service dealers and dealers only offer service in certain geographic areas. Find out if you need prior authorization from the contract provider to perform repairs or towing services. Make sure you ask how long it takes you to get an authorization, if you can get an authorization outside of normal business hours, and if the company has a toll-free number for authorization.
Test the toll-free number before buying the contract to see if you can pass easily. If you are considering purchasing a VSC or MBI policy, you should read the entire agreement to find out which parts are covered. As noted above, the broadest coverage is what is known as an „exclusion contract“, covering all parties and services except the parties and services listed in the „Exclusions“ section of the VSC. For contracts offering less coverage, a part or service must be explicitly mentioned in the „Covered Parts“ section of the contract to be covered. Price – The price of a repair contract depends mainly on the nature of the car, the number of miles on the car`s odometer when purchasing the contract, the types of repairs that the contract covers or does not cover, and the number of years or miles that the contract covers before it expires. Before performing your own maintenance, check your repair agreement to see if you allow it. If this is the case and you are performing the maintenance yourself, keep receipts for the products you have purchased and used, such as oil and other lubricants and liquids, filters, spark plugs, brake linings, belts and tires…