Vehicle Service Contracts

Vehicle service contracts, or “VSCs”, are an important and popular aftermarket product. The key point regarding a VSC is the fact that a vehicle service contract is not synonymous with a warranty or mechanical breakdown insurance, despite the fact that all three may cover essentially the same mechanical components. A vehicle service contract is not an extended warranty and should never be referred to as such. ** A VSC is a contractual agreement between an obligor and the owner of a vehicle to reimburse the owner for the cost of correcting qualified mechanical failures that occur during the term of the service contract, represented in months or miles, whichever occurs first. This lesson will begin our discussion of the features and benefits common to most VSCs.

Topics
  • Introduction to VSCs

  • VSC Administrators

  • Insurance Requirements

  • The Obligor

  • Bona Fide Insurance Companies

  • Underwriting Arrangements

  • What does a VSC Cover?

  • Deductibles

  • Eligibility Requirements

  • Eligibility Restrictions

  • Used Vehicles

  • Purchase After Delivery

  • Scope of Coverage

  • Exclusionary Coverage

  • Non-Covered Components

  • Exclusions

  • Time and Mileage Requirements

  • Common Features of VSCs

  • Rental Car Reimbursement

  • Roadside Assistance

  • Trip-Interruption

  • Prepaid Maintenance

  • Transferability

  • Customer Responsibilities

  • Cancellations

  • Refunds

  • Repossession

  • Total Loss

  • Pro-Rata Refunds

  • Calculating Refunds

  • Dealer Responsibility 

Features
  • Deployable online with Mosaic's LMS

  • Track and retain employee completions

  • SCORM Compliant version available

  • Text summary

  • English closed captions

Lesson Stats

Video Length

39:07

Units

22

Quiz Questions

17

Estimated Time

to Complete

50 minutes