Louisiana vehicle service contracts: who regulates them and what the law requires

In Louisiana, a company that provides a vehicle service contract registers with the Secretary of State, not the Department of Insurance, and the statute says the contract is not insurance. The same statute sets what the contract must say and gives the buyer a short window to return it for a refund.

The short answer

Who registers providers: a vehicle service contract may not be issued, sold, or offered for sale in Louisiana unless the provider has registered with the Secretary of State and remains in good standing (R.S. 51:3163(A)). A registration is effective for two years unless it is denied or revoked (51:3163(C)).¹
Not insurance: the statute says a motor vehicle service contract "is not insurance in this state or otherwise regulated under any provision of the Louisiana Insurance Code" (51:3162(5)(c)).²
What backs the promise: each contract must be insured under a reimbursement insurance policy from an insurer authorized to do insurance business in Louisiana, and the provider must file a copy of the policy with the Secretary of State (51:3163(E)(1)-(2)). A vehicle manufacturer is exempt from the registration and financial-responsibility requirements (51:3163(I)).¹
Your return right: the contract must let you return it within 20 days of the date it was mailed, or within 10 days of delivery if it was handed to you at the sale, or longer if the contract allows. If no claim has been made, the contract is void and you are owed the full price (51:3165).⁴
Required wording: the contract must state that it is not insurance, is not regulated by the Department of Insurance, and that concerns or complaints may be directed to the attorney general (51:3164(B)(12)).³

Why it matters

The office that holds a provider's registration depends on the product. For a home service contract, Louisiana moved registration back to the Department of Insurance in 2024; see our guide to Louisiana home warranty regulation. For a vehicle service contract the statute points elsewhere, to the Secretary of State. Knowing which office applies tells you where a registration would be on file and what the contract itself is required to tell you.

What counts as a vehicle service contract

The statute defines a motor vehicle service contract as a contract or agreement, for a separately stated price and for any duration, to perform or pay for the service, repair, replacement, or maintenance of a motor vehicle for operational or structural failure due to a defect in materials or workmanship, an inherent defect, or normal wear and tear.² The definition also reaches several add-on products sold for a separate price: repair or replacement of tires or wheels damaged by road hazards, paintless dent removal, repair or replacement of windshields damaged by road hazards, and replacement of a lost, stolen, or inoperable key or key fob.²

The chapter lists what it does not cover. Those exclusions include:⁵

a "warranty" as the statute defines it: a warranty made solely by the manufacturer, importer, or seller that is not negotiated or separated from the sale of the vehicle and is incidental to the sale;²
maintenance-only agreements, meaning contracts of limited duration that provide only scheduled maintenance;
contracts sold to people other than consumers;
a service contract on a single item of property sold at the time of sale or within a year of the date of sale;
a vehicle mechanical breakdown insurance policy offered by a vehicle mechanical breakdown insurer under Title 22; and
tire and wheel coverage a retailer sells as part of a package with tires or wheels, under Title 22.

Our guides to mechanical breakdown insurance vs. a service contract and extended warranty vs. manufacturer warranty explain the same dividing lines in general terms.

What the statute requires of the provider

Provider requirements under La. R.S. 51:3163 and 51:3166
Requirement	What the statute says
Registration	Register with the Secretary of State and remain in good standing before issuing, selling, or offering a contract; registration is effective for two years unless denied or revoked, with a renewal application due 90 days before it expires¹
Registration contents	Name, address, contact person, an in-state agent for service of process, a list of all officers, directors, and 10%-or-greater owners, and a copy of the basic organizational documents¹
Material changes	Notify the Secretary of State of any material change in the registration information within 60 days¹
Financial backing	Insure each contract under a reimbursement insurance policy and file a copy with the Secretary of State; the policy's issuer must meet one of two surplus tests ($15 million, or $10 million to under $15 million with a premium-to-surplus ratio of no more than three to one)¹
If the provider does not perform	The reimbursement insurer must accept a claim directly from the contract holder if the provider has not met a contractual obligation within 60 days of a valid claim being presented¹
Name and statements	A provider may not use "insurance," "casualty," "surety," "mutual," or similar words in its name; its contracts must say "This agreement is not an insurance contract"; it may not make or allow false or misleading statements or deliberately omit a material statement that would mislead if omitted⁶

What the contract must say

The statute requires a contract to be written in clear, understandable language and to include the items below.³

The provider's name and address, and any administrator.
For an insured contract, a statement that the provider's obligations are insured under a service contract reimbursement insurance policy, plus the insurer's name and address. This statement is not required for a manufacturer's own service contract on its own products.
The seller's name, the holder's name (if furnished), the total price and the terms of sale, and any deductible.
The goods and services provided and any limitations, exceptions, or exclusions.
Any restrictions on transferring the contract. Our guide to how warranty transfers work covers why that line matters when a vehicle is resold.
The terms for cancellation by either side. A provider that cancels must mail written notice at least 15 days beforehand, except for nonpayment, a material misrepresentation, or a substantial breach of the holder's duties.
The holder's duties, such as protecting against further damage or following the owner's manual.
Whether consequential damages and preexisting conditions are covered or excluded.
If repairs need prior approval, how to get it and how to make a claim, including a toll-free telephone number and a procedure for emergency repairs outside normal business hours.
The three-part statement: the contract is not insurance, is not regulated by the Department of Insurance, and complaints may be directed to the attorney general.

The return window

Under R.S. 51:3165 the contract must allow the original holder to return it within 20 days of the date it was mailed, or within 10 days of delivery when it is delivered at the time of sale, or within a longer period the contract permits. If no claim has been made, the contract is void and the provider must refund or credit the full purchase price. A ten percent penalty per month is added to a refund not paid or credited within 45 days after the contract is returned. The right is not transferable and applies only to the original holder.⁴

The statute does not set a refund formula for cancelling after that window. That depends on the cancellation terms the contract itself must disclose.³ For the broader picture across states, see vehicle service contract cancellation and refund rights.

What you can check

Read the contract for the three-part statement, which the statute requires in every motor vehicle service contract, and for the insurer's name and address, which it requires in an insured contract (a manufacturer's own contract on its own products is exempt from the insurer statement only).³
Note the date the contract was mailed or delivered. The 20-day and 10-day windows run from those dates.
Ask the Secretary of State's office how to confirm a provider's registration. The statute names that office, but this page does not point to a specific online search.
If a dispute arises, the statute's own wording is that complaints "may be directed to the attorney general." Our guide to where to file a warranty complaint lists other routes.

Limits and unknowns

This page covers the Louisiana chapter on motor vehicle service contract providers, R.S. 51:3161 through 51:3166. It does not cover federal rules that can also apply, such as the FTC Used Car Rule guide and the FTC Holder Rule, or financing add-ons such as GAP. We do not describe filing fees or forms, and we do not evaluate any company. Separately, the Louisiana lemon law applies to the manufacturer's express warranty, not to a service contract you bought.

General information, not legal advice. This page describes what the statute text says. It does not apply the law to anyone's facts, and it does not predict how a court or agency would decide a particular situation. Statutes change; the linked texts are the authority.

Last reviewed: 1 October 2026. Statute text as published by the Louisiana Legislature; the section histories show amendments through Acts 2024, No. 176 (to 51:3163). Our how we check explains how we treat state licensing and registration; see also the Register.