Vehicle Service Contracts is an automobile business. American Auto Shield offers most of these contracts and a specialist in this domain in the USA. Keeping in mind that automobiles are hands down vehicles which are easily prone to accidents, injuries, damages, malfunctions, theft etc. it is wise to draw up a vehicle service contract or argument. There are many kinds of service agreements doing the rounds in the automobile and each of them has a particular purpose in mind.
The most used ones are the repairing agreement, which takes care of all the expenditures related to your car’s repairing. However, when it comes to automobile much more is at stake and you need to know the details of other agreements. While a repairing agreement will save you from incurring exorbitant expenditures, it won’t save you from all the trouble. So, it’s better to choose the right kind of service agreement and ways of claiming service through it. So here we are, shedding some light into the various types of vehicular service agreement available in the market.
- Mechanical Breakdown Insurance
As the name suggests, this service agreement specifically takes care of mechanical breakdown issues. This kind of contract is very essential if you are purchasing a second-hand car or if you have an expensive luxury car. In both the circumstances, the cost of break down repairing is quite high and it isn’t generally covered under normal insurance. In such scenarios, this is necessary in order to get a compensation for the breakdown. In this case, the obligor is the dealer or the vehicular service contract provider who is liable for this payment.
- Dealer Obligor Service Contract
This kind of contract was quite prevalent earlier but now provided through wide scale vehicular service contract provider American Auto Shield. In case of any damages or injuries that the car encounters the dealer has to pay for the repairing, not the service providers. This is a huge liability on part of the dealer and hence given away toe VSCP.
- Vehicle Service Agreement Provider (VSCP) Contracts
This is nothing but a service provider contract done by vehicle servicing companies. Most of these companies tie up with car dealers and offer service agreements along with the car dealers. This deal can either come from the same company who has manufactured your car or from others. In case, the manufacturers are the same, it becomes quite easy to do the repairing. However, in all circumstance, the VSCP will bear all the cost of repairing and damages. In recent times, some VSCPs are breaking the law and selling service contracts over the internet. Stay clear of such fraudulent activities. VSCP contracts can only be taken through car dealers and nobody else, keep this in mind.
This is a simple agreement where the obligor is the manufacturing company of the car utility products like lubricants, additives, etc., which are used in your car parts. If any damage is incurred due to the application of these products, the manufacturing company is liable to pay the repairing charges as it goes against the product warranty protocol. American Auto Shield Reviews shows its credibility of service to the users.
So, keep these things in mind and use them judiciously to compensate your car repairing expenditure.