Service Contracts
Many vehicle dealers and
others sell optional contracts - service contracts
-issued by vehicle manufacturers or independent
companies. Prices on service contracts vary and
usually are negotiable. To help decide on whether
to purchase a service contract, consider the
following
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- The repairs to be covered
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- Whether coverage overlaps coverage provided by
any other warranty
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- Where the repairs are to be performed
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- Procedures required to file a claim, such as
prior authorization for specific repairs or meeting
required vehicle maintenance schedules
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- Whether repair costs are paid directly by the
company to the repair shop or whether you will have to
pay first and get reimbursed
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- The reputation of the service contract company.
Check it out with your state Attorney General's office
or local consumer protection agency
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| How do I resolve a dispute regarding
billing, quality of repairs or warranties?
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- Document all transactions-in writing
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- Start with the shop manager first. If needed,
contacting your Attorney General or local consumer
protection agency for help is the next step. These
offices may have information on alternative dispute
resolution programs in your community. Another option
is to file a claim in small claims court, which you
can do without the use of an attorney
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