Iowans can purchase motor vehicle service contracts to help provide repair, replacement, or expense reimbursements when a motor vehicle has an operational or structure failure due to a defect in materials, skill of work, or normal wear and tear. The motor vehicle service contract company must be licensed with the Iowa Insurance Division, so double-check before purchasing a motor vehicle service contract. You may be responsible for additional costs for expenses related to a repair or replacement, as the contract may not cover the complete costs of the repairs or replacement of parts.