Guide to Auto service contracts

15 Sometimes an auto part covered under a repair agreement is damaged due to the failure of a non- covered part. For example, many VSCs exclude coverage for hoses. If an engine is damaged due to a sudden loss of coolant through a cracked hose, many VSCs will not cover the engine damage. The VSCP or claim administrator will deny the claim because a contributing cause of the damage (a cracked hose in this case) is not covered. Never continue to drive a car once a dashboard warning light comes on that indicates a serious problem requiring you to stop driving immediately. Continuing to drive a car with such a warning light on is an example of what is called “continued operations.” Continued operations will almost always result in a repair claim being denied based on several exclusions, e.g. driving your car without proper fluid; negligence or abuse; and/or overheating. Repair agreements may not or will not cover: • Seals and gaskets (although coverage for these parts may be available as an optional benefit) • Adjustments, alignments, machining of brake rotors and drums, shop supplies, and unauthorized diagnostic time. • Correction of engine compression or excess oil consumption. • Valve grinding, burnt valves, and worn rings. • Mechanical breakdowns covered under a manufacturer’s new car warranty, manufacturer’s recall, or factory bulletins. • Vehicles used to transport people or haul goods for profit (unless commercial use coverage has been expressly purchased).