What should you check before buying?

Start with the coverage itself. Don’t rely only on a plan name such as Essential, Premium, Deluxe, Ultimate or Comprehensive — those names do not independently tell you what the contract covers. Look at the actual coverage description.

The individual agreement is the controlling document.

This distinction can make contracts easier to compare.

The exclusions and other contract conditions still matter.

This can be just as important as the coverage list. Read the exclusions. Depending on the agreement, exclusions may apply to things such as:

Do not assume that every mechanical failure is covered.

If this component fails tomorrow, where in the contract can I determine whether it is covered or excluded? If you can’t find the answer, ask before purchasing.

Don’t assume that purchasing a contract means every provision becomes available immediately. Review the agreement for any applicable:

Also determine how the service contract interacts with any manufacturer warranty or other protection you already have.

Look at both time and mileage. A contract may define its coverage period using one or both.

Don’t evaluate the length of coverage from a headline alone. Use the actual agreement.

A deductible is an amount you may be responsible for paying toward an eligible covered repair according to the contract. Before buying, determine:

A lower contract price doesn’t necessarily mean a lower total cost when you actually use the coverage.

The company selling you the vehicle service contract and the company administering it may not be the same. The agreement should identify the applicable administrator, who generally handles administration of the contract and applicable claims according to its terms.

This is something you want to understand before your vehicle breaks down.

Imagine that your vehicle develops a mechanical problem tomorrow. What would you actually need to do? The contract should explain the claims procedure. Depending on the agreement, the process may involve:

Read this section before purchasing.

This deserves its own item. Do not assume you can authorize a repair yourself, pay the bill and automatically receive reimbursement afterward. Your agreement may require authorization as part of the claims process. Before purchasing, find out:

A vehicle service contract is not a substitute for maintaining your vehicle. Review the agreement for maintenance requirements and any documentation you may be expected to maintain.

Don’t assume routine maintenance itself is covered unless the agreement specifically provides for it.

Some vehicle service contracts include benefits beyond covered mechanical repairs. These may include:

Don’t stop at seeing the benefit listed. Find out how it actually works.

A benefit being included does not necessarily mean it is unlimited.

Don’t compare contracts based only on a monthly payment. Understand the total cost.

A manageable monthly payment and a good-value contract are not necessarily the same thing.

Read the cancellation section before you buy, not only when you want to cancel. The agreement should explain the cancellation provisions applicable to the contract. Look for information about:

Do not assume every contract has the same cancellation policy.

Before purchasing additional protection, determine what you already have. Your vehicle may still have coverage through:

Compare your existing coverage with the new contract.

What would this new agreement add that I don’t already have? Understanding potential overlap can help you make a more informed decision.

This may be the most important item on the entire checklist. A marketing page can summarize coverage. A salesperson can explain options. A plan comparison can make differences easier to understand. But none of those replaces the actual agreement.

Before purchasing, review the applicable contract for:

If something matters to your buying decision, find where it is addressed in the agreement.