Everything people ask me, answered.

No, and this is the single most common mix-up. Insurance covers accidents, theft, weather, and vandalism. A vehicle service contract covers mechanical breakdown: parts that fail on their own from normal use.

They cover opposite categories of problem, which is why most drivers end up with both. Your insurance won't pay for a failed transmission, and a service contract won't fix a fender.

Technically, only a manufacturer can issue a "warranty," and it comes with the car. Everything sold afterward is a service contract. Everyone calls them extended warranties in conversation, including me, but the paperwork will say service contract and that's correct.

It depends on five things: the vehicle, its mileage, the coverage tier, the term length, and your deductible. A low-mileage sedan and a 200,000 km European SUV are not in the same universe of pricing.

Anyone who quotes you a flat price before asking about your car is guessing. Most people pay monthly over a set number of months rather than all at once.

Usually yes if: you're keeping the car a while, the model has a known record of expensive repairs, and a surprise $3,000 bill would genuinely hurt.

Usually no if: the car is worth less than the coverage costs, you already keep a repair fund, or you're still comfortably inside the factory warranty.

I've written a longer breakdown of the math in this post.

Often not, but your options narrow and prices climb with every kilometre. Most administrators stop writing new contracts somewhere past 200,000 to 240,000 km depending on the vehicle.

If you're near that line, it's worth checking now rather than in six months.

Yes. Nearly every contract has one, commonly around 30 days and 1,600 km. It exists so people can't buy coverage on Monday for a noise that started Sunday.

Anyone who tells you there's no waiting period is either misinformed or selling you something that won't hold up at claim time.

No. Pre-existing conditions are excluded under every contract in this industry, and administrators do check, through your service history, the diagnostic trouble codes stored in the car, and sometimes an inspection.

Fix what's broken first, then we can talk about protecting what isn't.

Coverage exists for all three, but eligibility, pricing, and which components are included vary a lot by administrator and vehicle. Exotic and heavily modified vehicles are frequently declined outright.

Send me the details and I'll tell you honestly whether there's a real option.

No. Any licensed repair facility or franchise dealership in Canada, including the mechanic you already trust. Just tell them you have a service contract before they start work.

The administrator pays the repair facility directly by card once the claim is authorized. You pay your deductible and nothing else on the covered portion. You are not fronting thousands and waiting on a reimbursement check.

Denials almost always come down to one of three things: the failed part isn't on your covered list, your maintenance records are missing, or the shop started the repair before calling the claims line for authorization.

Two of those three are completely preventable, which is why I go over them with every single customer. And if you have coverage through me, you don't argue alone. Call me and I'll get on the line with the administrator.

Yes, and this is the most underrated advice on this page. On a large engine or transmission claim, the administrator will ask for proof the vehicle was maintained on schedule. No records, no payout, regardless of how good your coverage was.

Take a photo of every service receipt and keep them in one folder on your phone. That's all it takes.

Yes. There's a review window, commonly 30 days, where you can cancel for a full refund if you haven't filed a claim. After that, you get a prorated refund based on the time and mileage left, sometimes minus a small administrative fee.

Your specific numbers are in the cancellation section of your contract, and I'll point them out to you before you buy.

Most contracts transfer to a private buyer for a small fee, and remaining coverage is a genuine selling point that can raise what you get for the car. Transfers usually don't apply to dealer trade-ins.

If you'd rather not transfer it, cancel instead and take the prorated refund.

Usually, and you get to choose it. A lower deductible means a higher monthly cost and vice versa. Some contracts also offer a "disappearing deductible" if you return to the same shop.

Deductibles typically apply per visit rather than per part, so one trip that fixes three covered items is one deductible.

Getting a quote from me never involves a credit check. Some payment plans may involve one before financing is approved. If that applies to your situation, I'll tell you before anything happens, not after.

Fair question, and you should ask it of everyone. Here's my answer: I don't cold call, I don't auto-dial, and I don't buy lead lists. You contact me first, or we never speak.

Beyond that, I'll tell you the administrator's name, send the full contract before you pay a dollar, and never pressure you with a deadline. Every one of those is something a scam operation can't do.

No. Not to lead brokers, not to marketing partners, not to anyone. A big reason those robocalls exist at all is that most warranty sites resell the details you type into them. Mine doesn't. See the privacy policy.

Refusing to name the administrator. "Final notice" urgency. A price that drops the moment you hesitate. Demanding payment before you've seen the contract. Any request for gift cards, wire transfers, or crypto.

I broke all six down in this post.