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Vehicle Service Contracts

Vehicle Service Contracts are sold by third party administrators or service contract providers (obligors) to vehicle purchasers, who agree to provide certain covered repairs and services as the result of specified triggering events. The insurer issues a contractual liability insurance policy to the obligor which either reimburses the obligor for all losses incurred or guarantees performance under the service contract.

Ancillary Service Contracts

This is a broad category of products covering lower cost service contracts. Ancillary contracts include Paintless Dent Repair, Tire and Wheel, and Windshield Protection contracts.

Appearance and Protectant Warranties

Warranties are provided, at no additional cost, to a purchaser of the underlying product. Common types of Appearance and Protectant Warranties include paint and fabric protection applications and theft deterrent products.

Vehicle Protection Products

Many states have passed Vehicle Protection Product laws which group together various warranties, ancillary service contracts, and miscellaneous products, such as key fob replacement, for common regulation.

Limited and Lifetime Warranties

Limited warranties provide repairs for defined mechanical breakdowns that occur during the warranty time period. We insure both short-term limited warranties and lifetime warranties.

Guaranteed Asset Protection

Guaranteed Asset Protection program reimburses creditors or assigned lenders for amounts waived under the term of the Guaranteed Asset Protection addendums (waivers) to loan or lease agreements. Guaranteed Asset Protection protects borrowers from loss arising from loan or lease balance exceeding auto insurance settlements in the event of total loss collision or unrecovered theft of the vehicle subject to a loan or lease.

Lease Excess Wear and Tear

Lease Excess Wear and Tear is sold by auto dealers to lessees as an addendum to a lease. The addendum agrees to waive charges for excess wear and tear otherwise levied by lessors upon vehicle return at lease termination. The reimbursement insurance policy issued to the lessor (dealer, OEM captive, or leasing company) reimburses the lessor for losses incurred from waiving Lease Excess Wear and Tear charges.

Involuntary Unemployment Insurance

Group coverage is sold to a lender or lessor who provides this coverage to all purchasers who have financed their purchase. It can be provided on a complimentary basis to the borrower and covers monthly payments owed by the borrower for a stated period. Lenders benefit by avoiding or delaying contract termination or repossession.

Walkaway® Vehicle Return Coverage

The Walkaway® Coverage program is a unique debt cancellation program that provides coverage in the event of involuntary unemployment, disability, international employment transfer, loss of driver’s license due to medical impairment, self-employed personal bankruptcy, and accidental death. Vehicles must be returned to the participating dealership to have the loan balance waived. The coverage is for the difference between the loan balance and the auction value of the vehicle. Following a one-year complimentary coverage, upgrades may be sold that increases the term of the loan or add a payment replacement feature.

Auto Deductible Reimbursement

Automobile Deductible Reimbursement provides coverage to the entity that agrees to waive or reimburse a consumer’s auto physical damage deductible. The benefits there under may be provided on a blanket basis as a complimentary enhancement to the primary larger transaction, such as the purchase of a vehicle, or it may be bundled as part of a membership package.


Insurance coverage is underwritten by a member company of Arch Insurance Group Inc. This is only a brief description of the insurance coverage(s) available under the policy. The policy contains reductions, limitations, exclusions and termination provisions. Full details of the coverage are contained in the policy. If there are any conflicts between this document and the policy, the policy shall govern. Not all coverages are available in all jurisdictions.