Exclusionary, listed parts, powertrain only: how a contract on an older car is written

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100,000 miles and up, the shape of the contract matters as much as the company. Here are the three shapes and the four pages to read first.

Three shapes

Listed parts. The contract names the parts and systems it pays for. If a part is not on the list, it is not covered. The longer the list, the more it covers, so the list is what you compare.

Exclusionary. The contract names what it does not pay for. Everything else in the car is covered, subject to the rest of the terms. The exclusions page is the one to read, and it is usually shorter than a parts list.

Powertrain only. A listed-parts contract narrowed to the engine, the transmission and the parts that drive the wheels. Read which internal parts are named, and whether seals, gaskets and the computer that runs the transmission are on the list.

Why the shape matters past 100,000 miles

On an older car, the question is rarely whether the engine is covered. It is whether the specific part that failed is covered, and whether the company calls the failure wear, a breakdown or a condition that existed before the contract. Those calls live in three places: the exclusions, the definitions and the pre-existing condition clause.

An exclusionary contract puts most of that on one page. A listed-parts contract spreads it across the list and the definitions. Neither shape is better on its own. The better contract is the one whose words you have read before you pay.

Read these four pages first

• Exclusions. Wear items, maintenance items, cosmetic items, and anything tied to modifications.
• Definitions. How the contract defines breakdown, wear, and pre-existing condition.
• Your obligations. Maintenance intervals, record keeping, and what to do before a shop starts work.
• Cancellation. The refund rule after coverage starts and any fee that comes off it.

Ask the seller for a sample contract before you buy. Some companies post one on their site for anyone to read. The score gives 15 of its 100 points to that one fact.

Confirm against your VIN. The factory clock starts at first sale, not at the model year. Terms vary by model year, trim and market.