Can I cancel an extended warranty (service contract) in Florida?
Yes. Florida law lets you cancel a motor vehicle service agreement within 60 days of buying it for a refund of everything you paid, minus any claims and an administrative fee of no more than 5%. If you cancel after 60 days, the refund must be at least 90% of the unearned pro rata amount, minus claims.
Extended warranty or service contract?
They’re the same thing. The FTC explains that a service contract is “sometimes called an ‘extended warranty,’” but that it “is not a warranty” (FTC). Florida law calls it a motor vehicle service agreement, and the definition also reaches road-hazard tire and wheel coverage, paintless dent removal, key and key fob replacement, and some theft-protection products (Fla. Stat. 634.011(8)). The rules below cover all of them, and The finance office and dealer add-ons explains how they’re sold.
Within 60 days: a refund of what you paid
“Any service agreement is cancelable by the purchaser within 60 days after purchase. The refund must be 100 percent of the gross premium paid, less any claims paid on the agreement. A reasonable administrative fee may be charged not to exceed 5 percent of the gross premium paid by the agreement holder” (Fla. Stat. 634.121(3)(a)).
Example (illustration only): you paid $2,400, had no claims and cancel on day 30. The fee can be no more than $120, so you get back at least $2,280.
After 60 days: a pro rata refund
If you cancel after 60 days, the company must “return directly to the agreement holder not less than 90 percent of the unearned pro rata premium, less any claims paid on the agreement” (Fla. Stat. 634.121(3)(b)). The Florida Chief Financial Officer’s overview states the same rules (Florida CFO).
Example (illustration only): a $2,400, 48-month contract with no claims, cancelled after 12 months. If the contract prorates by time, $1,800 is unearned, and the refund must be at least 90% of that, or $1,620. Check how your contract figures the unearned part.
If your lender cancels the contract instead, that cancellation is “only valid if authorized by the terms of the service agreement” (Fla. Stat. 634.121(3)(b)).
Where the refund goes, and the tax on it
- The company owes it. The service agreement company “remains responsible for full refunds to the consumer on canceled service agreements,” though it may pay refunds through the dealer that sold the contract (Fla. Stat. 634.121(3)).
- The sales tax comes back too. A dealer passing a refund along must include “the sales tax refund owed to the service agreement holder” (Fla. Stat. 634.121(3)(c)). Florida’s Department of Revenue rule says that when a refund is prorated, the tax is refunded “based on the same proration” (Fla. Admin. Code R. 12A-1.105(3)).
- It may go to your loan. When a dealer handles the refund, a lender’s record showing your balance went down by the refund counts as proof it was paid (Fla. Stat. 634.121(3)(d)).
What to send, and to whom
To whom. The company named on your contract. Florida requires every service agreement form to identify “the name, address, and Florida license number of the licensed insurer or service agreement company” (Fla. Stat. 634.121(9)). The CFO notes the company may be listed as “underwritten by” or “Obligor” (Florida CFO). Send a copy to the dealer that sold it and, if you have a loan, to your lender.
What. Follow the contract’s cancellation section and use its form if it has one. Include the contract number, the VIN, the date and odometer reading, and a payoff letter if the loan was paid off. Ask for the refund amount and how it was figured.
How. In writing, by a method that shows delivery, and keep a copy. CFPB examiners found it abusive for servicers to require two in-person dealership visits to cancel an add-on (CFPB Supervisory Highlights, Issue 35).
If the company doesn’t respond, the CFO’s overview lists the Florida Insurance Consumer Helpline, and its Division of Consumer Services takes requests for help.
What to say
“I’m cancelling service contract number [] on VIN []. I bought it on [date], within 60 days, so I’m asking for a refund of the full price, minus any claims and no more than a 5% fee.”
“I’m cancelling after 60 days. Please refund at least 90% of the unearned pro rata amount, minus claims, and show me how you figured it.”
“Please include the sales tax I paid on the contract.”
“What is the Florida license number of the company on this contract?”
“Will the refund come to me or go to my lender?”
Before you sign or cancel: checklist
7 things to check before you sign.
Florida notes
FAQ
Is there a fee to cancel a service contract in Florida?
There can be. Within 60 days of buying it, you get back what you paid, less claims and any fee, which can’t be more than 5%. After that, you get at least 90% of the unearned pro rata amount, minus claims.
Can I cancel if I sell or trade in the car?
Check the contract’s cancellation provision, which every Florida service agreement must have. If you cancel after 60 days, the refund must be at least 90% of the unearned pro rata amount, minus claims. If you sell to a private buyer, you can instead transfer the contract for a fee of no more than $40.
Does paying off my loan cancel the service contract?
Not by itself. The CFPB notes that vehicle products like service contracts “may continue to provide benefits after the loan is terminated.” If you want a refund, ask for it. The Packed Payment Detector shows what the contract added to your payment.
What if the dealer says it can’t cancel the contract?
Write to the company named on the contract. Florida law says it “remains responsible for full refunds to the consumer on canceled service agreements.”
Sources
- Fla. Stat. 634.121 (2026): notice that it isn’t required (1), transfer and $40 fee (2), refunds within and after 60 days, company and lender cancellations, refunds through the dealer, sales tax refund, proof of refund (3), company name and license number (9), rate not regulated (11) (accessed Oct 2026)
- Fla. Stat. 634.011 (2026): what counts as a motor vehicle service agreement (accessed Oct 2026)
- Florida CFO – Motor Vehicle Service Agreement Overview: refund rules, licensing, rate not regulated by the Office of Insurance Regulation, “Obligor” tip, verify the company, consumer help (accessed Oct 2026)
- Florida CFO – Division of Consumer Services: consumer help and company search (accessed Oct 2026)
- Florida DOR – Rule 12A-1.105, Service Warranties: tax refunded on the same proration when a service warranty is cancelled (accessed Oct 2026)
- FTC – Buying a Used Car From a Dealer: a service contract is not a warranty (accessed Oct 2026)
- CFPB – Supervisory Highlights, Issue 35: Auto Finance (Oct 2024): service contracts can outlast the loan; two-visit cancellation requirement found abusive (accessed Oct 2026)
About this guide
This page is general information about Florida rules as of October 2026. It isn’t legal advice. Your service contract and the law control, and the law can change. If something here doesn’t match your paperwork, ask the company named on the contract to explain it in writing.
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