Is the contract underwritten by an insurance company?
Some states require a service contract to be underwritten by an insurance company. Find out if the primary insurer of the contract has been rated by A.M. Best, the most respected company offering ratings on insurance companies (www.ambest.com). This will give you an indication as to its ability to pay your claim should the administrator go out of business. What is the nature of the deductible? Fully investigate a policy’s deductible before signing on the dotted line. Consider not only its amount, but also whether it’s per visit or per repair. With a per visit deductible, each visit to the shop will run you a fixed amount, regardless of how many parts are repaired; a per repair deductible applies to each serviced part. What sounds like a minor difference could have a major impact on your wallet. Is the warranty transferable? Some warranties end when the person who bought the warranty sells the car. A warranty that allows you to transfer it to a new buyer is preferable; it’s also an exce
