Whether the warranty that comes with your car already covers the same repairs that you would get under the service contract or whether the service contract protection begins after the warranty runs out. Does the service contract extend longer than the time you expect to own the car? If so, is the service contract transferable or is a shorter contract available?

Whether the vehicle is likely to need repairs and their potential costs. The value of a service contract is determined by whether the cost of repairs is likely to be greater than the price you pay for the service contract protection.

Whether the service contract covers all parts and systems of the car. Check out all claims carefully. Claims that coverage is "bumper to bumper" may not be entirely accurate.

Whether there is a deductible required, and if so, consider the amount and terms of the deductible.

Whether the contract covers incidental expenses, such as towing and the costs of a rental car while your car is being serviced.

Whether repairs and routine maintenance, such as oil changes, can be performed at locations other than the dealership from which you purchased the contract.

Whether there is a cancellation and refund policy for the service contract, and what the costs are if you cancel.

Whether the dealer or company offering the service contract is reputable. Read the contract carefully to determine who is legally responsible for fulfilling the terms of the contract. Some dealers sell service contracts that are backed by a third party. If a third party is responsible, you may wish to ask if the company is insured and to check the company's performance with the West Virginia Attorney General's Consumer Protection Division at 1-800-368-8808.