Guide to Auto service contracts

18 What You Need to do if there is a Claim Repair agreements always provide instructions on what to do if you need repairs. Read these instructions carefully as soon as you buy a repair agreement, and read them again when you determine that your car needs a repair. One important instruction is to report needed repairs immediately to the obligor or claim administrator. All repair agreements have a toll-free phone number for this purpose. A claim may be denied if you do not follow the contract’s instructions exactly. For costly repairs, an obligor or administrator will likely dispatch an independent inspector to examine the car. For all repairs that may be covered under the repair agreement, you will need to approve a “tear down.” A tear down is a partial disassembly of the area of the car with the problem so the inspector can determine what the exact problem is, and what might have caused the problem. If, after the inspection, the obligor refuses to pay for the repair because the obligor thinks the repair is not covered by the repair agreement, then you will need to pay for the tear down and the repair yourself. However, you can try to get the obligor to reconsider its decision not to pay you. This is discussed later under the section entitled “What Should I Do If My Claim Is Denied?” If the obligor or administrator says the breakdown is covered by the repair agreement, it will provide the repair facility with a “claim authorization number.” This authorization is a promise that the obligor will pay for the particular repair. You and the repair facility should both write down and keep this authorization number, along with the name of the person giving the approval, what repairs were approved, and the date and time of the approval.