Automotive Service Contract Terms

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Questions and Answers

What happens to the deductible if you return the vehicle to the original Seller for repair of a Breakdown?

It remains unchanged.

It is waived in its entirety. (correct)

It is doubled.

It is removed partially.

What is defined as Normal Wear and Tear?

Complete failure of a vehicle component.

A condition that existed prior to the Agreement Purchase Date.

Reduction in operating performance exceeding manufacturer’s tolerances.

Damage that meets manufacturer's tolerances and specifications. (correct)

What qualifies as a Pre-existing condition?

Any mechanical issue that arises within the warranty coverage.

A failure that existed prior to the Agreement Purchase Date. (correct)

A breakdown that occurs during the warranty period.

A condition that develops after the Agreement Purchase Date.

Which type of vehicles qualifies as a Qualified Lift Drop?

Vehicles with lift kits under 6 inches or drops under 4 inches. Signup and view all the answers

Who is referred to as the 'Seller' in the Agreement?

The dealership from whom the Agreement was purchased. Signup and view all the answers

What type of vehicles are excluded from the Roadside Assistance benefit?

Motorcycles and antique vehicles Signup and view all the answers

Which scenario will NOT be covered under the Roadside Assistance benefit?

A vehicle breakdown due to intoxication Signup and view all the answers

Which of the following costs are included in the Roadside Assistance benefit?

Repair work performed at a site of breakdown Signup and view all the answers

What type of towing service is excluded from the Roadside Assistance benefit?

Non-emergency towing to a repair shop Signup and view all the answers

Which of the following is NOT considered a reason for damage or disablement that is excluded from coverage?

Fire damage from an internal engine issue Signup and view all the answers

Which services are explicitly mentioned as NOT covered under the Roadside Assistance benefit?

Shoveling snow from around a vehicle Signup and view all the answers

What type of vehicles can also be excluded from coverage aside from trucks and motorcycles?

Recreational Vehicles (RVs) and commercial vehicles Signup and view all the answers

What is the total limit of coverage liability for key(s)/key fob(s)/remote(s) replacement under this agreement?

$5,000 Signup and view all the answers

What must be done with non-working key(s)/key fob(s)/remote(s) before repairs can be initiated?

They must be available for inspection. Signup and view all the answers

What does the agreement state about the warranty on replacement key(s)/key fob(s)/remote(s)?

There is no warranty on replacements. Signup and view all the answers

Who is responsible for out-of-pocket expenses exceeding $5,000 throughout the term of the agreement?

The Agreement Holder Signup and view all the answers

Which statement best describes what is meant by 'Eligible Key(s)/Key Fob(s)/Remote(s)'?

Key(s)/key fob(s)/remote(s) provided at the time of the vehicle’s original delivery. Signup and view all the answers

What is the maximum amount that may be paid for a part according to the guidelines?

Manufacturer’s suggested retail price Signup and view all the answers

Which of the following best describes the types of parts that may be used for replacement?

New, remanufactured, or used parts Signup and view all the answers

What must you do if your vehicle is dangerous to operate?

Have the vehicle towed Signup and view all the answers

What should you do immediately after a breakdown?

Take action to prevent further damage Signup and view all the answers

Who must provide an estimate of parts and labor costs?

The Repair Facility Signup and view all the answers

What action must the Repair Facility take before starting any repairs?

Contact the claim department for approval Signup and view all the answers

Under what circumstance can the Administrator move your vehicle to another Repair Facility?

At their sole discretion Signup and view all the answers

What does the Agreement not cover?

Damage from delayed repairs Signup and view all the answers

What determines the labor rate that may be covered?

The Repair Facility’s published hourly labor rate Signup and view all the answers

Which of the following actions is NOT recommended after a breakdown?

Operating the vehicle to a shop Signup and view all the answers

Study Notes

Definitions and Terms

Disappearing Deductible: Deductible waived entirely if repairs are made by the original Seller listed in the Agreement.
Normal Wear and Tear: Damage to components that haven’t failed but don’t meet manufacturer specifications. Reduced performance exceeding tolerances is not considered normal wear.
Pre-existing Conditions: Underlying conditions or failures existing before the Agreement Purchase Date.
Qualified Lift Drop: Vehicles with lift kits under 6 inches or drop kits under 4 inches qualify for coverage.

Provider and Seller Information

Service Contract Provider: Smart AutoCare, located in Richardson, TX, with customer service contact 855-292-9309, except in Florida.
Florida Provider: Lyndon Southern Insurance Company, located in Jacksonville, FL, with license number 03698 and customer service contact 800-888-2738.
Seller: The dealership from which the customer purchased the Agreement.

Exclusions from Coverage

Roadside assistance does not cover emergencies from intoxication, vehicle usage in felonies, non-emergency towing, or part replacements.
Service for vehicles exceeding 1.5 tons, antique vehicles (over 20 years old), and commercial vehicles is excluded, along with damage from specific incidents like collisions or vandalism.
Coverage does not include removal of snow tires, tire repairs, or costs related to taxes and fines.

Claim Filing Process

Immediate action is required to avoid further damage; failure to do so may void coverage.
If the vehicle is unsafe, towing is necessary, using roadside assistance if applicable.
Vehicles must be taken to the Seller or authorized Repair Facility; Administrator can offer assistance via phone.
Repair Facilities must obtain approval before proceeding with repairs by calling the Claim Department.

Coverage Details

Key replacement for lost, stolen, or inoperable keys covered under specific terms; non-working keys must be provided for inspection.
Maximum limit of coverage liability for key replacement set at $5,000.
No warranty or guarantees on replacement keys provided by the Service Contract Provider.

Limitations and Exclusions

Damage due to negligence, misuse, or failure to perform manufacturer-recommended maintenance is not covered.
Coverage excludes breakdowns caused by lack of necessary fluids, environmental damage, or if the vehicle's odometer has been tampered with.
Breakdown or repairs outside the US and Canada are not covered.

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Description

Test your knowledge on key automotive service contract definitions and terms. This quiz covers important concepts such as deductibles, wear and tear, pre-existing conditions, and coverage qualifications. Ensure you understand the intricacies of service contracts in the automotive industry.