Guide to Auto service contracts

9 Dealer-Obligor VSCs Some car dealers sell VSCs in which the dealer, rather than a VSCP, is the obligor. These “dealer-obligor” VSCs are nearly identical to VSCs issued by VSCPs. The main difference is that when you buy a dealer- obligor VSC from a dealer, the obligor is the dealer, rather than a VSCP. As with a VSC issued by a VSCP, a dealer-obligor VSC must show the name and address of a backup insurance company authorized by the CDI. The backup insurance company must honor valid claims for covered repairs if the dealer fails to do so. Another important difference between a VSC issued by a VSCP and a VSC issued by a dealer-obligor is that dealer-obligor VSCs will include the name, address and phone number of an “administrator.” An administrator is a special company that will handle claims, process cancellation refund requests, and answer questions about the VSC on behalf of the dealer that sold the VSC. VSCPs also sometimes use an administrator.