Guide to Auto service contracts

27 Also, have the inspection mechanic review the coverages and exclusions of any used car VSC you are considering buying, and have the mechanic explain what is covered (wear and tear is a must) and what is not covered that might break. Keep in mind, if there is any problem with your vehicle at the time of purchase, the Obligor may refuse to repair the vehicle because of a pre-existing condition exclusion. Make sure the dealer fixes any problems with your vehicle before you buy. Can I Cancel a VSC ? All VSCs are cancelable under California Civil Code Section 1794.41. The obligor must give you a full refund of the VSC purchase price if you meet all of the following requirements: • You cancel the VSC within 60 days after receiving the contract, or 30 days if your car is used and came without a manufacturer warranty. • You send your cancellation notice as specified in the VSC. • You have not filed a claim with the dealer or VSCP. (If you have filed a claim, you may still cancel, but you will only receive a partial refund. The obligor may keep some of the purchase price based on the elapsed time or mileage, as specified in the VSC.) You are entitled to a partial refund if you cancel after either 60 or 30 days (whichever is applicable) regardless of whether you have filed a claim. The obligor may keep some of the premium based on the elapsed time or mileage, as specified in the VSC. The obligor may also keep a fee of up to $25.00 or 10% of the premium, whichever is less. If a VSCP or dealer is not honoring the cancellation and refund sections of the contract, then contact the insurance company listed on the VSC. If the insurance company does not resolve the problem, then contact the CDI.