Vehicle Service Contract FAQs

Questions about Vehicle Service Contracts

Before deciding whether to buy a vehicle service contract, ask these questions:

1. What is a vehicle service contract?
Vehicle service contracts are designed to protect consumers and their pocketbooks against any unexpected, costly repairs to their vehicles. Plans cover the costs associated with auto repair, including parts, labor, and sales tax for covered repairs or replacements.

2. Why do I need a vehicle service contract?
A vehicle service contract provides priceless protection for one of your most vital assets. Although not everyone owns a home, most Americans do own at least one vehicle. The average vehicle service contract holder will make multiple claims over the life of the contract. Additionally, approximately 1/3 of all automobiles experience one or more failures in a given year. With the complexity of today’s computer-laden vehicles combined with climbing labor rates, one repair can often cost more than the contract itself. A vehicle service contract helps to offset rising repair costs at an affordable price by protecting the customer’s vehicle against tomorrow’s repair bills at today’s prices.

3. When does my coverage start?
There is a 30-day/1000-mile waiting period from the odometer reading and sale date of the vehicle service contract in which the administrator is unable to administer claims for the contract. This allows us to keep our vehicle service contracts at an affordable price by eliminating coverage for those vehicles with preexisting failures.

4. Is a vehicle service contract transferable?
Our vehicle service contracts are fully transferable, adding value to your car the instant you have coverage. Why not pass that along to the next guy?

5. How are claims paid?
Simply have the shop contact our claims office to receive claim authorization. Once the claim is approved, the repair shop will fix or replace all covered part(s), submit the signed repair invoice, and the bill will be paid directly to the repair shop by corporate credit card. In the event the shop you choose does not accept credit cards, we will be happy to pay by check. Your vehicle service contract covers parts, labor and even sales tax, if applicable.

6. Are the vehicle service contracts insured?
Yes, in most states we offer contracts that are backed by insurance companies that have an A.M. Best rating of A-Excellent or better. A.M. Best’s Financial Strength Rating is an independent opinion of an insurer’s financial strength and ability to meet it’s ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance and business profile.

7. What is A.M. Best Rated?
A.M. Best Rated is an industry standard indicating that your vehicle coverage is backed by a certified, reputable insurance company. In plain english this is the Blue Cross/Blue Shield of protection. It means that when we say you’re covered, you’re covered.

8. Are there payment options?
We offer no-fee payment plans. You can get started with a small down payment. We accept all major credit cards and checks for payment plans.

9. Do you offer additional benefits?
Take advantage of any or all the benefits we offer such as 24/7 roadside assistance, which includes fuel delivery, jump start, tire change and towing.

10. Where can I take my vehicle for repairs?
You may take your vehicle to the licensed repair facility of your choice, including your local dealer, your favorite repair shop, or any national chain that performs vehicle repairs such as Pep Boys, Goodyear or Firestone.

11. Can I cancel my vehicle service contract?
Although we’re certain you’ll appreciate your vehicle service contract’s peace of mind, you are able to cancel your coverage. If you cancel within the first 30 days, you may receive a full refund. After that, you are entitled to a pro rata refund of the unused portion of your contract. Unlike some companies, we do not pro rate your refund from the in-service date of your vehicle.

12. Can I buy a vehicle service contract from my dealer?
Most of the time the dealer only offers an extended auto warranty at the time or your vehicle purchase. An extended auto warranty “wraps” the new car factory warranty and extends beyond it. A vehicle service contract is sometimes incorrectly referred to as an “auto warranty” or “extended auto warranty” if sold outside of a new vehicle purchase. The difference is subtle but important. Auto warranties are provided by a manufacturer and are included with the original vehicle purchase. Extended auto warranties are sold separately by dealers to wrap and extend beyond the manufacturer warranty coverage. Vehicle service contracts can be purchased at any time, although the earlier you purchase a vehicle service contract in the life of the vehicle, the better coverage you can usually obtain.

13. Do I pay a deductible?
Key Vehicle Resources offers vehicle service contract deductible options ranging from $0 to $100. Contract holders pay a one-time deductible per repair, no matter how many items need to be fixed.

14. Where do I find my VIN?
Your VIN, or Vehicle Identification Number, is located in several areas and is your car’s unique identifying number.
To find your VIN, check the following areas:

• On the vehicle’s registration card
• On a sticker inside the driver’s side door
• On the driver’s side dashboard of your car
• On the title to your vehicle
• On your insurance card

15. What vehicle maintenance is required?
Plans require that customers perform normal maintenance as required by the manufacturer such as oil changes and fluid checks. In addition, service records from the sale date of the contract showing routine maintenance of the vehicle are required to transfer a vehicle service contract.

16. Do I need service records?
Not every claim will require service records; however, we recommend that customers retain receipts for vehicle maintenance for their records. Much like the requirements of a manufacturer’s warranty, vehicle service contracts require that customer’s perform normal maintenance on their covered vehicles. If a vehicle service contract claim is submitted for a maintenance related item, we will ask to review the customer’s records. In addition, we will occasionally ask for service records to verify the mileage on the contract in order to confirm the customer was provided the correct coverage. Lastly, service records from the sale date of the contract showing routine maintenance of the vehicle are required to transfer a vehicle service contract.