What is a Service Contract?
Car, truck or SUV owners need this coverage. They pay a one-time up-front fee, and get coverage for costly repairs that often occur as a vehicle ages. Owners get protection from extreme repair bills, so they think of a Service Contract like insurance. Purchasers also call this coverage an Extended Warranty, providing repair coverage beyond what their manufacturer's warranty provides, and providing repair coverage after their manufacturer's warranty expires. However, a Service Contract is not insurance or a warranty. It's actually a vehicle service agreement that pays your repair shop directly for covered repairs, and pays you directly for covered emergency towing, rental car, and trip interruption costs based on where you purchased your vehicle, or the plan you purchase.
