First, there is a major difference between the manufacturers warranty and the "service contract" you purchased that is commonly called an extended warranty. The biggest and most important difference is that a manufacturers warranty is covered under the federal Consumer Protection act. Here is a link to a reference
http://www.duramax.bizhosting.com/ma...s-warranty.htm Under this act a manufacturer cannot void a warranty unless they can prove what you did caused the failure. It also prevents them from forcing you to use their products or services in order to keep a warranty. This act was a direct result of the old "use my oil and services or else" ploys the auto dealers used for years.
An extended warranty is a contract and is not covered under this act as I understand it. Since it is a "contract" for product protection other laws apply. I am a firm believer in the saying that only a fool buys an extended warranty and believes it will always protect them.
We used to sell new motorcycles and the F&I and extended warranty programs are shell games. The dealers get big kickbacks on the warranties sold and are free to add points to the interest over and above what they are approved to offer. In other words, the finance company offers the dealer financing at 3.5% for your loan. The dealer then adds on 1,2,3 or more points and makes the offer knowing he has a lot of room to knock off some of the extra points to close the deal. A dealer never looses on anything contrary to the sales pitch. The extended warranty is just icing on the cake as the get a big chunk of it also. The way it works is simple. The company offering the contract sells it to the dealer at a fixed rate for each model. The dealer then adds what he wishes or can scam out of the glassy eyed customer that is on the hook. The dealer can sell it at "list" and make a straight percentage or jack it up as much as he can. Meantime, the customer is drooling and twitching over their new ride and does not even bother to read the documents. We all have done it and we all have heard the stories.