How are claims handled?

Depending on your specific contract, you may be able to choose any service dealer or authorized repair center when your vehicle needs to be repaired or serviced. However, some may require you to return to the selling dealer for service as provided under the coverage agreement. This provision could be inconvenient if you purchased the vehicle from a dealership in another area.

Determine if repairs to your vehicle will be covered while you are traveling and if you are covered in the event of an out-of-town move during the contract. Understand that some vehicle service contracts allow for service only in a specific geographical area.

If you are limited to a specific authorized repair facility, find out if it maintains an adequate stock of parts. You could experience repair delays if parts are not readily available and must be ordered.

Deciding on one service contract company will be dependent on your particular situation and how the contract addresses and meets your needs. For your protection and convenience, seek answers to the following questions:

• Does the company offer a toll-free number for easy accessibility?
• Is prior authorization required from the contract provider or administrator for any repair work or towing services? If so, how long does it take to get authorization?
• Are you required to pay upfront for repairs? If so, how long does it take to receive a reimbursement?

Find out who settles claims in case you have a dispute with the service contract provider. The Better Business Bureau offers an alternative dispute resolution program, including mediation and arbitration.