Your contract has an Exclusionary section that lists what the vehicle service contracts do not cover. Additionally, all parts not specifically listed under the covered parts section of your contract are considered not covered. The following information is not the full list of exclusions, but rather the most commonly misunderstood.
Normal maintenance items or repairs such as engine tune-ups and front end alignments are not covered. Adjustments or Alignments to covered parts are not covered. In addition, if the diagnosis determines the breakdown was caused by lack of proper maintenance, continual use of vehicle in need of repair, rust, corrosion, lack of proper fuels, fluids, coolants, lubricants or failure to replace seals and gaskets in a timely manner would result in a covered part being excluded.
Also, any cost which would be covered by a manufacturer warranty or any pre-existing conditions prior to the contract purchase date are also considered exclusionary. You should ALWAYS refer to your contract for a complete list of terms, covered parts, exclusions, and or definitions.