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A vehicle service contract, or VSC, is comprehensive coverage that pays for unexpected mechanical repairs and failures. You can buy a service contract from the manufacturer at the time of car purchase, or you can buy it from a dealer or other third party at any time.
What does a service contract cover? Service contracts cover parts likely to break down within the warranty period. For example, the contract might cover repairs to major components of the vehicle, such as the engine, transmission and air conditioning, as well as roadside assistance and rental car reimbursement.
For example, a Service Contract might be used to define a work-agreement between a contractor and a homeowner. Or, a contract could be used between a business and a freelance web designer. Most often, Service Contracts include details such as deadlines and payment agreements.
Extended warranty can be a confusing term, but actually refers to a service contract. A true warranty comes from the manufacturer WITH the purchase of your car, while an extended warranty or service contract is an extra protection that you can purchase for your vehicle that extends beyond the manufacturer warranty.
How to Write a Service AgreementA description of the parties involved in the agreement.A description of the services to be performed.A description of fees and payment schedules.The effective date of the contract, when work will begin, and the terms under which it can be terminated.Include a place for signatures.More items...