A service contract is not a single event. It moves through a sequence, and most problems come from a missed step in that sequence. The steps below follow the usual order. Your contract may change the order or add steps, so check each one against the document you signed.
Before you sign
Read the full contract, not the summary. Confirm the covered parts, the exclusions, the deductible, the waiting period, and the claim procedure. Ask for a copy of the signed contract before you leave, and make sure the copy shows the contract number and the effective date.
The effective date and the waiting period
Write down the effective date. Coverage may not start on the day of purchase. If a waiting period applies, note the date it ends and the parts it covers. A failure during the waiting period may not be covered, even if the failure happens soon after you buy the contract.
Registration or record, if the state requires one
Some states require the seller or the obligor to register a contract with a state agency or to keep a record of it. Check whether your state requires registration. The state pages on this site state whether a roster is published and show the as-of date of that roster. Keep your own copy of the contract regardless of what the state requires.
When a part fails
Call the administrator listed in the contract before you authorize a repair. Give the contract number, the part that failed, and the date of the failure. Ask for an authorization number and write it down. If the contract requires you to use a specific facility, confirm that the facility is in the network before the repair begins.
The repair and the payment
Ask the repair facility for an itemized invoice that lists labor, parts, and any charge that is not covered. Confirm which charges you owe. If the contract pays by reimbursement, submit the claim within the deadline in the contract and keep a copy of every document you send.
A denied claim
Ask for the denial in writing and for the exact contract language the administrator relies on. Compare that language with the covered-parts list and the exclusions. If the denial is unclear, ask for a review under the claim procedure in the contract. A lawyer or a state consumer office can explain your options if the review does not resolve the question. This guide does not give legal advice and has not read every state's rules.