Service plan, insurance and other warranties

These are often confused. They pay for different events.

Vehicle service contract

Pays for covered repairs when a listed part fails from normal wear. It does not replace auto insurance, which pays for accidents, theft and weather damage, and it may overlap with a factory warranty while that is still active.

Home service plan

Pays for repair or replacement of covered systems and appliances that fail from normal wear. It does not replace homeowners insurance, which pays for sudden damage such as fire and storms, and it may overlap with a builder or manufacturer warranty.

What to do

Check the dates on any warranty you already have first, and keep your insurance in place. A plan is a separate purchase with its own start date, fee, limits and exclusions.