Automating Claims Integrity, Sales Oversight, and Underwriting Intelligence – A White Paper on AI-Enabled Automation for Vehicle Service Contracts and Ancillary Products

Executive Summary

The U.S. vehicle service contract (VSC) market is a significant segment of a global market valued at up to $90 billion in 2026 and growing.   This market sits within the U.S. automotive F&I industry, which generates over $40 billion in annual dealer revenue, with a significant portion coming from service contracts. This is a high-volume business built on a long, multi-party chain, including dealer or agent sales, provider underwriting, third-party administration, and a distributed network of dealer and independent repair facilities that adjudicate claims. That structure creates exactly the conditions where artificial intelligence delivers outsized value — large transaction volumes, repeatable decision patterns, and a persistent information gap between what field-level data shows and what actually reaches executives.