Motor Vehicle Service Agreement Overview
A motor vehicle service agreement is a contract or agreement between the owner/leaser of a motor vehicle and the company providing coverage. It provides coverage for a motor vehicle specified on the service agreement; this includes new or used vehicles. It covers loss due to failure of a mechanical or other component part, or a mechanical or other component part that does not function as it was originally intended. Motor Vehicle Service Agreements are defined in Section 634.011, Florida Statutes.
These contracts usually provide service after the normal warranty expires but some begin at other stated times. These contracts are also referred to as an “extended warranty”. (Please note: service agreements sold to cover company fleet vehicles used for commercial purposes are excluded from this definition and are exempt from regulation under the Florida Insurance Code.)
A motor vehicle service agreement company is a corporation, sole proprietorship, or partnership (other than an authorized insurance company) issuing motor vehicle service agreements. An authorized insurance company may also write this product, if authorized for this line of business. A motor vehicle service agreement company must have a license to sell this product in Florida, pursuant to Section 634.031, Florida Statutes.
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