A Florida vehicle service agreement is optional, even when financed

A Florida motor vehicle service agreement is optional, even when its price is part of the car loan. Before the sale, the seller must tell you in writing that you do not need the agreement to buy or finance the car.

This is a paid repair contract. It is not the maker’s warranty or a form of auto insurance. Ask for the full sample contract before you decide. Read what it leaves out, the service and mileage rules, the deductible, and whether repairs need approval first. Also check which shops and parts are allowed, any rental benefit, the dates, and the licensed company behind the plan.

You may cancel within 60 days. The refund is 100 percent of the gross price, less paid claims, and the fee may be no more than 5 percent. After 60 days, a customer who cancels gets at least 90 percent of the unused share, less claims.

Those rules cover common state-regulated plans. Fleet plans and a few narrow add-on plans sit outside them. To judge the value, compare the full financed cost with the terms and limits before this paper blends into the rest of the car deal.