Buying a car? You also may be encouraged to buy an auto service contract to help protect against unexpected, costly repairs. While it may sound like a good idea, don't buy in until you understand both the terms of the contract and who is responsible for providing the coverage. 
Contributed by: Federal Trade Commission
Last Reviewed: 07/17/2009

http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut02.shtm