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If you purchase a California auto insurance repair agreements, the California auto insurance company will be liable to cover the repairs. The California auto insurance company which has this obligation is known as the Obligor. The word Obligor is vital in the sence that there are different types of obligors.
The type of obligor you are dealing with should be known.
The word auto insurance repair agreements can exist with many other names such as: auto service contracts, extended warranties, extended service contracts, mechanical breakdown insurance, etc.
The types of repair agreements, with each having a certain type of obligor:
Vehicle Service Contract Provider, Dealer Obligor Service Contracts, Product Warranties, Mechanical Breakdown, Insurance (MBI).
Vehicle Service Contract Provider (VSCP)
California auto insurance obligor of a VSCP service contract is a company which possesses an important license issued by the California Department of Insurance (CDI) to provide service contracts. To get a license, several requirements are meant to be met.
Extended warranties, automobile service contracts, and other repair agreements in California Department of Insurance requires only car dealers to provide a VSCP service contract. Several companies have been found to be selling VSCP service contracts through the Internet to consumers directly, instead of selling through car dealers. Any of the California auto insurance company caught will be charges with felony.
Dealer Obligor Service Contracts
There are similarities between these first two service contracts. But the major difference is that the obligor is the car dealer, when you purchase a dealer obligor service contract.
Product Warranties
Having a product warranty, the obligor is a producer that makes the products like treatments, lubricants, fluids
etc, which you or another person pours into the gas tank, radiator, engine, etc. The producers which makes these product offers that when their product(s) are used, it will repair or replace particular broken parts.
Having said all, service contract protects much more than product warranties.
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