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Selling Service Contract/Warranty for car repair

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smuggymba

Junior Member
We're a small car dealership in texas and my boss has asked me to come up with a business plan to sell warranty to customer which will take care of their car repairs in case of an accident.

We plan to charge 100 dollars/month for this service plan. I have some questions/points to make:

1.) Do we need some insurance company to back this warranty or can we back this on our own. We have a repair/body shop and we can fix the car ourselves (the parts will cost)

2.) We don't plan to take responsibility for liability, this warranty plan will cover just the repair of the car.

I'm new to all this and need help from y'all to figure out any legal requirements/implications etc.

Are we legally eligible to sell warranty or do we need some license/bond etc. Is there a price for such policy/bond.

Please help ASAP.
 



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