Vehicle service contracts, or “VSCs”, are an important and popular aftermarket product. The key point regarding a VSC is the fact that a vehicle service contract is not synonymous with a warranty or mechanical breakdown insurance, despite the fact that all three may cover essentially the same mechanical components. A vehicle service contract is not an extended warranty and should never be referred to as such. ** A VSC is a contractual agreement between an obligor and the owner of a vehicle to reimburse the owner for the cost of correcting qualified mechanical failures that occur during the term of the service contract, represented in months or miles, whichever occurs first. This lesson will begin our discussion of the features and benefits common to most VSCs.