Cancel a vehicle service contract in California
General information, not legal advice. Laws change. Facts last checked on 13 November 2026 against the sources linked.
We name no lender and sell nothing.
Vehicle service contract
Cancel in writing within 60 days of receiving the contract, with no claim made, and the full price is refunded (30 days for a used car with no maker warranty; your contract may allow longer).
Otherwise the refund is for the unused part, less a fee of up to $25 if the window has passed.
Our summary of the law quoted below. Your contract says what applies to you.
Used car with no maker warranty
Fee: 10 percent or $25, whichever is less
Optional? When a dealer writes about an add-on while you negotiate on a specific car, it must say in writing, at least once, that you can buy the car without it (not for used cars sold at auction).
“the full amount paid shall be refunded by the seller to the purchaser if the purchaser provides a written notice of cancellation to the person specified in the contract, and if no claims have been made against the contract.”
More from the law (6)
“Unless the contract provides for a longer period, within the first 60 days after receipt of the contract, or with respect to a contract covering a used motor vehicle without manufacturer warranties ... within the first 30 days”
California Civil Code 1794.41(a)(4)(A)
“If a claim has been made against the contract either within the first 60 days after receipt of the contract … a pro rata refund … shall be made by the seller to the purchaser”
California Civil Code 1794.41(a)(4)(A)
“the seller may assess a cancellation or administrative fee, not to exceed 10 percent of the price of the service contract or twenty-five dollars ($25), whichever is less.”
California Civil Code 1794.41(a)(4)(B)
“When making any written representation during the negotiation to purchase or lease a specific vehicle about an add-on product or service, the dealer shall disclose at least once that the add-on is not required”
California Civil Code 1784.41(b), (g)
“the consumer can purchase or lease the vehicle without the add-on. This disclosure shall be in writing and shall be clear and conspicuous.”
California Civil Code 1784.41(b), (g)
“This section shall not apply to a used vehicle sold at an auction.”
Not covered yet
These pages do not yet cover paint and fabric protection, tire and wheel protection, key replacement, theft etching or prepaid maintenance plans, and state no rule for them. For questions, read the contract or ask the offices below.
- Paint and fabric protection
- Tire and wheel protection
- Key replacement
- Theft etching
- Prepaid maintenance plans