GENERAL PROVISIONS
NOTE: All highlighted terms are specific to the type of Vehicle Service Contract you may purchase and may be of special note to you as you review these terms and conditions of the contract.
1. AGREEMENT Term: Coverage under this AGREEMENT will expire on the Expiration Date or when the VEHICLE reaches the specified Expiration Odometer Mileage, whichever occurs first, as shown on the DECLARATION PAGE of this AGREEMENT. Plan Coverage Expiration is determined as follows:
a. MOTORAIDE ADVANTAGE VEHICLES : The expiration Date is determined by adding the months of the Term Selected to the AGREEMENT Purchase date; and the expiration odometer Mileage is determined by adding the mileage of the term selected to the odometer reading of the VEHICLE on the AGREEMENT purchase date.
b. NEW VEHICLES: The Expiration Date is determined by adding the months of the Term Selected to the AGREEMENT Purchase Date, and the Expiration Odometer Mileage is the mileage of the Term Selected.
c. WRAP COVERAGE: The Expiration Date is determined by adding the months of the TERM Selected to the IN-SERVICE DATE. If the IN-SERVICE DATE is not provided; July 1st of the model year will be deemed as the IN-SERVICE DATE, and the Expiration Odometer Mileage is the mileage of the TERM Selected. The Wrap Coverage TERM cannot exceed the Manufacturer’s powertrain warranty.
d. PRE-OWNED VEHICLES: No coverage will be provided under this AGREEMENT during the thirty (30) day period of time following the AGREEMENT Purchase Date and the first five hundred (500) miles the VEHICLE is driven after this AGREEMENT is purchased, as calculated from the Odometer Reading shown on the DECLARATION PAGE . The Expiration Date is determined by adding the months of the Term Selected to the AGREEMENT Purchase Date, and the Expiration Odometer Mileage is determined by adding the mileage of the Term Selected to the Odometer Reading of the VEHICLE on the AGREEMENT Purchase Date.
2. Coverage: The coverage afforded to YOU for the VEHICLE is determined by the PLAN Selected, Type of coverage and Term Selected by YOU on the DECLARATION PAGE and pursuant to the terms and provisions of this AGREEMENT. WE will pay on behalf of or reimburse YOU for the approved cost to repair or replace any of the COVERED P ARTS listed in the Schedule of COVERED PARTS which cause a MECHANICAL BREAKDOWN, less any DEDUCTIBLE, and will pay to YOU the Additional Benefits and the 24-Hour Roadside Assistance Benefits listed in the Schedule of Coverages, provided YOU comply with all of the terms and provisions of this AGREEMENT. Repairs may be completed with parts of like kind and quality, commensurate with the age and odometer reading of the VEHICLE at the time the part(s) failed. In some cases, manufactured or used parts may be utilized.
Please see the Schedule of COVERED PARTS document for a detailed list of COVERED PARTS and to determine the coverages applicable to YOUR PLAN. All covered components must be functioning properly at the time of the sale of this AGREEMENT. Please refer to the AGREEMENT Holder’s Guide to Filing a Claim section of this AGREEMENT for claims instructions.
3. Deductible: WE will pay the portion of the expense for a covered repair that is in excess of the DEDUCTIBLE Selected on the DECLARATION PAGE of this AGREEMENT. The standard DEDUCTIBLE is one hundred dollars ($100) per CLAIM. An optional DEDUCTIBLE of fifty dollars ($50) or two hundred dollars ($200) is also available on all PLANS. If no DEDUCTIBLE is indicated on the DECLARATION PAGE, the DEDUCTIBLE will be the standard one hundred dollars ($100) per CLAIM. The DEDUCTIBLE will not apply to the Additional Benefits or the 24-Hour Roadside Assistance Benefits listed in the Schedule of COVERED PARTS section.
4. Limits of Liability:
a. Single Claim Limit: OUR liability with respect to any one CLAIM is limited to the approved cost to repair or replace any COVERED PARTS using the approved retail labor rate, and the listed labor time from a nationally recognized labor time guide (i.e. Motors Guide or All-Data), less any DEDUCTIBLE . Parts replacement may include new parts, or parts of like kind and quality, which may include serviceable, used parts or remanufactured parts, as customarily used in the automobile industry. In all cases parts replacement cost shall not exceed the manufacturers suggested retail price. In no event shall O UR liability exceed the approved cost necessary to correct the actual cause of the MECHANICAL BREAKDOWN.
b. Aggregate Limit: OUR liability with respect to the total of all benefits paid or payable while this AGREEMENT is in force shall not exceed the lesser of: (1) The Actual Cash value of the VEHICLE at the time of the current repair; or (2) The NADA retail value of the VEHICLE at the time of the current repair:
5. Manufacturer’s Warranty: If any part is repaired and/or replaced under the manufacturer’s warranty covering the VEHICLE, and those same components are listed in the Schedule of COVERED PARTS section of this AGREEMENT, WE will reimburse YOU for a portion of the manufacturer’s deductible if the manufacturer’s deductible exceeds the Deductible Selected, as shown on the DECLARATION PAGE. The amount WE reimburse will be the actual amount YOU were required to pay under the terms of the manufacturer’s warranty, less the DEDUCTIBLE shown on the DECLARATION PAGE that is made part of this AGREEMENT.
6. Territory: The benefits provided under this AGREEMENT are only available for losses and expenses incurred within the United States and Canada. United States means the 50 United States and the District of Columbia and does not include Puerto Rico, Guam or other territories and possessions.
7. Incidental & Consequential Damage: OUR and the ADMINISTRATOR’S liability for incidental and consequential damages including, but not limited to, property damage, loss of use of the VEHICLE , loss of time, inconvenience, or commercial loss resulting from the operation, maintenance and/or use of the VEHICLE , is expressly excluded herein.
8. Subrogation Provision: In the event that coverage is provided under this AGREEMENT, WE shall be subrogated to all the rights YOU may have to recover against any person or organization arising out of any safety defect which is the subject of a voluntary or mandatory recall campaign, as well as out of any order, judgment, consent decree, or other settlement, and YOU shall execute and deliver instruments and papers and do whatever is necessary to secure such rights. YOU shall do nothing to prejudice those rights. Further, all amounts recovered by YOU for which YOU have received benefits under this AGREEMENT shall belong to, and be paid to US, up to the amount of benefits paid under this AGREEMENT.
9. Maintenance Requirements: In order to keep this AGREEMENT in effect, YOU must have the VEHICLE checked and serviced in accordance with the manufacturer’s recommendations. Failure to follow such recommendations may result in a denial of coverage. YOU must retain verifiable receipts for the maintenance services performed. If YOU perform the actual services, then verifiable receipts showing purchases of all required parts and materials necessary to perform the maintenance must be retained, along with a statement showing the date and mileage when the services were performed. Proof of maintenance may be required to be submitted to U S when a C LAIM is filed.
10. Other Provisions:
a. This AGREEMENT is not a contract of insurance.
b. This AGREEMENT is inclusive of the manufacturer’s warranty; it does not replace the manufacturer’s warranty, but provides certain additional benefits during the term of the manufacturer’s warranty. Losses covered by the manufacturer during the manufacturer’s warranty period are not covered under this AGREEMENT.
c. This AGREEMENT is not renewable
EXCLUSIONS FROM COVERAGE
THIS AGREEMENT DOES NOT PROVIDE COVERAGE:
1. FOR REPAIR COSTS OR EXPENSES FOR PRE-OWNED VEHICLES OUT OF THE MANUFACTURER WARRANTY INCURRED WITHIN THE FIRST THIRTY (30) DAYS AND FIVE HUNDRED (500) MILES OF THE AGREEMENT PURCHASE DATE;
2. FOR ANY MECHANICAL PROBLEMS THAT EXISTED PRIOR TO THE PURCHASE OF THIS AGREEMENT;
3. FOR REPAIR COSTS OR EXPENSES REPORTED OR MADE AFTER THE EXPIRATION OF THE TERM OF THIS AGREEMENT OR NOT AUTHORIZED BY THE ADMINISTRATOR;
4. FOR REPAIR COSTS OR EXPENSES IF THE ODOMETER OF THE VEHICLE BREAKS OR BECOMES INOPERABLE OR UNRELIABLE FOR ANY REASON AND ODOMETER REPAIRS WERE NOT MADE IMMEDIATELY AT THE TIME OF FAILURE, OR IF THE ODOMETER HAS BEEN TAMPERED WITH, DISCONNECTED OR ALTERED IN ANY WAY;
5. FOR REPAIR COSTS OR EXPENSES IF THE VEHICLE HAS BEEN USED FOR THE FOLLOWING PURPOSES, REGARDLESS OF WHETHER THE BUSINESS USE OPTION WAS PURCHASED: POLICE OR LAW ENFORCEMENT SERVICES, FIRE, AMBULANCE OR EMERGENCY SERVICES, TAXI, LIMOUSINE OR SHUTTLE SERVICES, PICK-UP AND/OR DELIVERY OPERATIONS, RACING, NEWSPAPER OR MAIL DELIVERY, RENTAL SERVICES, CONSTRUCTION, SECURITY SERVICES, SNOW REMOVAL OR SNOW PLOWING, CABLE OR LINE INSTALLATION, OR HAULING FOR HIRE, OR IF THE VEHICLE HAS BEEN USED FOR HAULING TRAILERS IN EXCESS OF THE MANUFACTURER’S RATED CAPACITY OR HAULING TRAILERS WITHOUT SUITABLE EQUIPMENT, OR IF THE REQUIREMENTS IN THE MANUFACTURER’S MANUAL FOR VEHICLES USED TO PULL TRAILERS ARE NOT FOLLOWED;
6. FOR REPAIR COSTS OR EXPENSES IF YOU CANNOT PROVIDE TO THE ADMINISTRATOR ACCURATE RECORDS PROVING THAT YOU HAVE MAINTAINED THE VEHICLE IN ACCORDANCE WITH THE MANUFACTURER’S SPECIFICATIONS AND INSTRUCTIONS, OR IF ANY MECHANICAL OR ELECTRICAL ALTERATIONS HAVE BEEN MADE TO THE VEHICLE INCLUDING, BUT NOT LIMITED TO, THE USE OF OVERSIZED TIRES, INSTALLATION OF HEADER PIPES OR LIFT, LOWERED KITS, AND REMOVAL OF ANY EMISSION CONTROL PARTS SYSTEM;
7. FOR REPAIR COSTS OF ANY MECHANICAL BREAKDOWN CAUSED BY THE AGREEMENT HOLDER’S FAILURE TO PROTECT THE VEHICLE FROM FURTHER DAMAGE, INCLUDING THE FAILURE TO REPLACE LEAKING SEALS AND/OR GASKETS IN A TIMELY MANNER.
8. REPAIR COSTS FROM OVERHEATING DUE TO CONTAMINATION (INTERNAL OR EXTERNAL) OR INADEQUATE AMOUNTS/LEVELS OF FLUIDS AND/OR LUBRICANTS; ANY FAILURE RELATED TO THE AGREEMENT HOLDER’S FAILURE TO MAINTAIN PROPER QUALITIES OR LEVELS OF COOLANTS OR LUBRICANTS
9. FOR REPAIR COSTS OR EXPENSES IF THE VEHICLE IS STILL IN THE MANUFACTURER’S BASIC WARRANTY PERIOD OR COVERED BY A RECALL OR SPECIAL POLICY BY THE MANUFACTURER;
10. FOR REPAIR COSTS ACQUIRED OUTSIDE OF THE CONTINENTAL UNITED STATES (EXCLUDING ALASKA AND HAWAII); OR IF THE VEHICLE IS REGISTERED OUTSIDE OF THE CONTINENTAL UNITED STATES (EXCLUDING ALASKA AND HAWAII)
11. FOR ANY FAILURE TO A COVERED PART DAMAGED BY A NON-COVERED PART. FOR ANY FAILURE TO A NONCOVERED PART DAMAGED BY A COVERED PART.
12. FOR REPAIR COSTS OR EXPENSES IF THE VEHICLE HAS BEEN ABUSED OR NEGLECTED, OR ANY PART OF IT HAS BEEN SUBJECT TO ALTERATION OR ACCIDENT, OR FOR ANY ACCIDENTAL LOSS OR DAMAGE RESULTING FROM COLLISION OR UPSET, FALLING MISSILES OR OBJECTS, FIRE, THEFT, ARSON, EXPLOSION, LIGHTNING,
EARTHQUAKE, WINDSTORM, ICE, HAIL, WATER, FLOOD, MALICIOUS MISCHIEF, VANDALISM, RIOT OR CIVIL COMMOTION, OR IF THE VEHICLE IS A TOTAL LOSS, HAS BEEN REPOSSESSED OR IS THE SUBJECT OF A REPOSSESSION ACTION, OR FROM ANY OTHER CAUSE WHATSOEVER, EXCEPT AS OUTLINED IN THIS AGREEMENT;
13. FOR LIABILITIES FOR DAMAGE TO PROPERTY OR FOR INJURY TO OR DEATH OF ANY PERSON ARISING OUT OF THE OPERATION, REPAIR, MAINTENANCE OR USE OF THE VEHICLE, WHETHER OR NOT RELATED TO ANY COVERED PART, OR FOR CONSEQUENTIAL LOSSES OR DAMAGE, INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE, LOSS OF USE OF THE VEHICLE, LOSS OF TIME, INCONVENIENCE, OR COMMERCIAL LOSS RESULTING FROM THE OPERATION, MAINTENANCE AND/OR USE OF THE VEHICLE, UNLESS SPECIFICALLY COVERED HEREIN;
14. FOR REPAIRS TO ANY PART THAT HAS NOT SUFFERED A MECHANICAL BREAKDOWN, OR IF THE WEAR ON THE PART HAS NOT EXCEEDED THE PUBLISHED FIELD TOLERANCE ALLOWED BY THE MANUFACTURER, OR FOR REPAIR COSTS NOT NECESSARY TO CORRECT A MECHANICAL BREAKDOWN, OR FOR DAMAGES OR ANY LOSS RESULTING FROM FAULTY OR NEGLIGENT AUTO REPAIR WORK OR FROM THE INSTALLATION OF DEFECTIVE PARTS;
15. FOR ANY REPAIR COSTS DUE TO CONTAMINATION OF ANY KIND, CORROSION, RUST, DETONATION, PREIGNITION, CARBON BUILD UP, SLUDGE, ELECTROLYSIS, RATTLES, WATER LEAKS, WIND NOISES;
16. FOR ANY OF THE FOLLOWING PARTS: VOICE RECOGNITION SYSTEMS; PERIMETER WARNING SYSTEMS OR ANY PART THEREOF; INFRARED SYSTEMS OR ANY PART THEREOF; SATELLITE SYSTEMS THAT ARE NOT INTEGRAL TO THE FACTORY INSTALLED RADIO; MANUAL AND HYDRAULIC CLUTCH ASSEMBLY SUCH AS, BUT NOT LIMITED TO; MANUAL CLUTCH PEDAL, CLUTCH DISC, PRESSURE PLATE AND THROW-OUT BERARING; GLOW PLUGS; BRAKE PADS, SHOES, ROTORS AND DRUMS; WIPER BLADES, WIPER ARMS; ALL BATTERIES, BATTERY CABLES; HYBRID VEHICLE COMPONENTS SUCH AS, BUT NOT LIMITED TO ELECTRIC MOTOR, POWER CONTROLLER, HYBRID TRANSAXLE, ELECTRONIC TRANSMISSION, INVERTER, GENERATOR(S) AND ELECTRONIC DISPLAY MONITOR UNLESS THE OPTIONAL HYBRID/ELECTRIC VEHICLE OPTION WAS SELECTED AND PAID FOR BY YOU; AIR FILTERS, OIL FILTER, COOLANTS AND FLUIDS, IF NOT IN CONNECTION WITH A COVERED REPAIR; SPARK PLUGS; PLUG WIRES; EGR VALVE; DRIVE BELTS; RUBBER HOSES; EXHAUST PIPES; CATALYTIC CONVERTERS; MUFFLERS; RESONATORS; SHOCK ABSORBERS; TIRES, WHEELS AND WHEEL COVERS; ANY COMPONENT THAT ITS ONLY PURPOSE IS FOR ILLUMINATION SUCH AS BUT NOT LIMITED TO; SEALED BEAMS; HIGH –INTENSITY DISCHARGE (XENON) HEADLAMPS, LED’S, LIGHT BULBS AND LENSES; NON-FACTORY INSTALLED AUDIO SYSTEMS AND DISC PLAYERS; PLASMA TELEVISIONS; CAR PHONES; CELLULAR, SATELLITE, OR MICROWAVE COMMUNICATION DEVICES; ANY BODY COMPONENT SUCH AS BUT NOT LIMITED TO; BRIGHT METAL PARTS, RUBBER MOLDINGS, WEATHER STRIPS, METAL, ALL GLASS AND INTEGRATED DEFFOGER, PLASTIC AND TRIM; UPHOLSTERY; SEAT PADS; VINYL TOP; CARPET; ASH TRAYS; CUP HOLDERS; ANY NON-FACTORY INSTALLED PARTS; CONVERTIBLE TOP, FRAME AND MECHANISM; UNROOF TRACK AND MECHANISM; SAFETY RESTRAINT SYSTEMS (SEAT BELTS AND AIR BAGS) OR ANY PART THEREOF; OR CHARGES FOR: SHOP SUPPLIES, FREIGHT, HAZARDOUS WASTE DISPOSAL, WHEEL ALIGNMENT AND TIRE BALANCE.
17. REPAIR COST OR EXPENSES FROM ANY OTHER CAUSE WHATSOEVER, EXCEPT AS OUTLINED IN THIS AGREEMENT AND THE SCHEDULE OF COVERED PARTS.