Frequently Asked Questions
The information on this page attempts to answer the most commonly asked questions. Just click the linked words in the question, or scroll down, to read the answer.
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General Information
- What is an extended warranty or vehicle service contract?
- I haven't had any problems. Do I really need an extended warranty?
- What if my vehicle is still covered by the manufacturer's warranty?
- How do I choose the right coverage plan?
- What warranty options do you offer and what are the differences?
- How do I purchase an extended warranty for my vehicle?
- Do you offer a money-back guarantee?
- Do you offer any payment or financing plans for the purchase?
- What other benefits are included?
About The Policies
- Do you offer coverage plans for both new and used vehicles?
- Can I still buy a warranty if my manufacturer's warranty has expired?
- How old can a vehicle be and still qualify for an extended warranty?
- When does my extended warranty begin and expire?
- Is a vehicle inspection required for coverage?
- What's included with the purchase of an extended warranty?
- Do your coverage plans cover wear & tear?
- Do your coverage plans cover parts and labor?
- Are seals and gaskets covered by your extended warranties?
- Are after-market components covered?
- Will your warranty cover vehicles for commercial or agricultural purposes?
Making A Claim
- Where can I have repairs done?
- Will a dealership honor your warranty?
- What do I do if the repair shop won't honor your warranty?
- What if my vehicle breaks down while I'm away from home?
- How do I make a claim for covered repairs?
- How are claims paid? Do I have to wait for reimbursement?
- Is the deductible paid on each repair visit or each repaired component?
- Is your extended warranty transferrable if I sell the vehicle?
- What happens if I trade in the vehicle for a new one?
Reliability And Stability
- Why not buy a service agreement from the dealership?
- Why are your prices less than a dealership or other online company?
- How do I know that my claims will be paid?
- Who insures or reinsures your extended warranties?
Answers:
- What is an extended warranty or vehicle service contract?
Commonly referred to as an "auto warranty", vehicle service contracts pay you in the event of a mechanical failure or wear beyond the manufacturer's tolerances for all labor, parts and other associated costs required to repair or replace the damaged vehicle components designated in the agreement.
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- I haven't had any problems. Do I really need an extended warranty?
Yes, if you want to avoid being surprised by high repair costs. Mechanical failure happens frequently and is always unexpected. The probability for mechanical failure increases with the vehicle's age and mileage. This probability is why vehicle manufacturers only provide a warranty for a specific number of years or miles. With an extended warranty, you choose protection to match your future plans to trade or sell the vehicle.
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- What if my vehicle is still covered by the manufacturer's warranty?
As a vehicle's age and mileage increases, so does the cost of an extended warranty. So the earlier you purchase a protection plan, the less it will cost. Also note that our extended warranty coverage applies for a period of years beginning on the date the agreement was purchased. Be aware that some dealer programs and other warranty companies begin their coverage on the vehicle's in-service date; not the date of the vehicle service contract.
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- How do I choose the right coverage plan?
It's always better and less expensive to buy a warranty when you have fewer miles on your vehicle. The more miles you have on the vehicle, the more you should expect to pay. However, you need to consider your driving habits. Examine how many miles you drive each year and how long you plan to keep the vehicle. Your answers will help you determine the best term and mileage option.
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- What warranty options do you offer and what are the differences?
Technically, vehicle service contracts are either "exclusionary" or "name component" contracts. The exclusionary contract is commonly referred to as a bumper-to-bumper plan and covers everything on your vehicle except components specifically listed in the agreement as being excluded. The list of excluded components consists mainly of routine maintenance items. On the other hand, the name component contract covers only those components listed as being covered in the agreement. A name component contract is intended to cover major items on the vehicle compared to the exclusionary policy that covers virtually everything.
Detailed information on our coverage options can be found in our Coverage Plans section.
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- How do I purchase an extended warranty for my vehicle?
The fastest and easiest way to purchase a warranty is to use our online enrollment form. Once we receive your basic information, a customer service representative will contact you to discuss your options and answer any questions.
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- Do you offer a money-back guarantee?
All of our plans offer a FULL money-back guarantee for 30 days, as long as there are no claims.
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- Do you offer any payment or financing plans for the purchase?
Yes, with "interest-free financing", you pay a minimum down payment (typically 20% of the sales price) at the time of purchase and finance the remaining amount in equal monthly installments of twelve or eighteen months.
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- What other benefits are included
Every extended warranty purchased from us includes Emergency Road Service, Trip Interruption, Rental Reimbursement and Tire Service. With one phone call, we'll bring you fuel, unlock your doors, jump start your dead battery or tow your vehicle. We'll also pay for a rental car and, in some circumstances, hotel and meals while your vehicle is being repaired. Click herefor more information on these benefits.
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- Do you offer coverage plans for both new and used vehicles?
Yes, coverage plans are available for both new and used vehicles. Your vehicle's model year and mileage determines how the vehicle is classified. Vehicles beyond a set age and mileage may still qualify for a new vehicle warranty with an extended eligibility surcharge; otherwise, it will qualify for a used vehicle warranty. But don't get confused, our system will analyze your vehicle's information automatically and select the best coverage to meet your needs.
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- Can I still buy a warranty if my manufacturer's warranty has expired?
You may purchase an extended warranty after your manufacturer's warranty has expired, but the longer you wait, the more expensive the policy. Nonetheless, we offer extended warranty availability for vehicles up to 9 years old with 125,000 miles.
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- How old can a vehicle be and still qualify for an extended warranty?
For a "new" vehicle extended warranty, the maximum age is current model year plus 4 years, and the maximum mileage is 50,000 miles. For a "used" vehicle warranty, we offer plans for vehicles up to 9 years old with 125,000 miles.
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- When does my extended warranty begin and expire?
Whether you buy a "new" or "used" extended warranty, your coverage begins the day that you purchase the warranty; not the vehicle in-service date. Thus you receive the full benefit of the term option that you select.
For a "new" vehicle program, your extended warranty will expire at the end of the term or when the odometer reaches the total mileage selected. For example, a 5 year/100,000 mile plan would expire 5 years from the date you purchased the warranty or when the odometer reaches 100,000 miles.
For a "used" vehicle warranty, the mileage of the plan selected is in addition to the current odometer mileage. For example, a 48 month/48,000 mile plan would expire 48 months from the date the warranty was purchased or when the vehicle has been driven an additional 48,000 miles.
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- Is a vehicle inspection required for coverage?
In some instances, the administrator may require that your vehicle pass an inspection before coverage begins. This usually only occurs when your vehicle only qualifies for a "used" extended auto warranty policy. Most "new" car polices do not require a vehicle inspection. However, we do require that you wait 30-days and 1,000 miles after purchase for the policy's coverage to begin. Furthermore, no vehicle service contract covers a pre-existing condition, regardless of where you purchase the policy.
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- What's included with the purchase of an extended warranty?
Every extended warranty that we sell includes Emergency Road Service during the full coverage term. If you have a break down anywhere in the United States or Canada, one phone call will summon assistance for fuel, flat tires, dead battery and more. This benefit also includes a per-day allowance for alternate transportation and an allowance for a hotel and meals if the breakdown is more than 100 miles from your home. For complete details, click here.
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- Do your coverage plans cover wear & tear?
Wear & Tear refers to a covered component that is worn beyond the manufacturer's tolerances and is an available option with every warranty that we sell.
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- Do your coverage plans cover parts and labor?
Our administrator pays full retail rates for all labor and parts required to repair a covered component. This includes payments for taxes, fluids, removal fees, shop supplies and freight, if necessary.
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- Are seals and gaskets covered by your extended warranties?
Seals and Gaskets coverage is included on all plans.
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- Are after-market components covered?
No. After-market items are not covered by any vehicle service contract. Only factory-installed components are eligible for coverage.
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- Will your warranty cover vehicles for commercial or agricultural purposes?
Vehicles used for commercial or agricultural purposes do qualify for coverage except for uses specifically prohibited. A surcharge is added to the plan's total cost for commercially used vehicles, and you must designate the vehicle for commercial use when purchasing the extended warranty.
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- Where can I have repairs done?
You can have your vehicle repaired by any licensed repair facility that makes you comfortable. You may take it in for repairs at your original dealer, your favorite repair shop, or any national chain that performs vehicle repairs such as Firestone or Goodyear. And all claims are paid direct to the repair shop so you don't have to file a claim and wait for reimbursement.
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- Will a dealership honor your warranty?
Absolutely! We pay full retail price on all labor and parts for a covered repair, so a dealership will welcome the additional business. And all claims are paid direct to the repair shop so you don't have to wait for reimbursement when you file a claim.
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- What do I do if the repair shop won't honor your warranty?
First, there's no reason a reputable repair facility shouldn't accept your warranty coverage. We pay full retail price on all labor and parts for a covered repair. But if you are told that the warranty will not be honored, call the toll-free number found in your agreement and let the administrator talk to the repair facility. If the repair facility still won't accept the warranty plan, then go somewhere else as they may be attempting to pull something over on you.
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- What if my vehicle breaks down while I'm away from home?
Help is on the way! With vehicle service contract we sell, we include Emergency Road Service that provides for trip interruption among other benefits. You receive compensation of $75 per day for hotel and meals if you find yourself stranded and are more than 100 miles from home. You also receive per diam amount for alternate transportation. Coverage also includes bringing your fuel, changing a flat, and more. For information about included benefits, click here.
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- How do I make a claim for covered repairs?
Simply take your vehicle to the repair facility of your choice, or have it towed with the Emergency Road Service benefit included with your warranty. Show your vehicle service contract to the Service Department, and they will call the administrator at the toll-free number listed in the agreement to authorize the repair. Your only out of pocket expense is the deductible. The adminstrator will pay the repair facility directly for all covered repairs.
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- How are claims paid? Do I have to wait for reimbursement?
All covered claims are paid direct to the repair facility. Thus you do not have to pay for the repairs, file a claim or wait endlessly for reimbursement. In fact, most repair facilities will not accept extended service agreements unless the company pays direct.
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- Is the deductible paid on each repair visit or each repaired component?
Your deductible is the only out of pocket expense you incur for a covered repair. But more importantly, you only pay one deductible per repair visit. Be careful when researching other warranty wholesalers because some charge a deductible per repaired component.
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- Is your extended warranty transferrable if I sell the vehicle?
You bet! All extended warranties that we sell can be transferred in the event you sell your vehicle to another individual. In fact, your used vehicle may be worth more because you can transfer your extended warranty into the new owner's name. Also see the answer to the question below regarding trading a vehicle.
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- What happens if I trade in the vehicle for a new one?
If you trade your vehicle with a dealer, your extended warranty cannot be transferred to the dealer. Instead, you may receive a pro-rated refund of the warranty's purchase price based upon the term and mileage remaining on the agreement. Some conditions may apply depending upon the administrator, so read the section regarding this topic in your agreement.
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- Why not buy a service agreement from the dealership?
The main reasons you shouldn't buy a warranty from a dealership are price and flexibility. Dealerships use the sale of warranties to increase their profits and cover inventory costs and will often finance the warranty's price with your vehicle. So not only are dealership prices 3 or 4 times higher, but you also end up paying interest that makes your warranty even more expensive. Additionally, a dealership's warranty is typically restricted to being valid only at the dealership's repair facility. Our vehicle service contracts do not have these restrictions, and because we don't use dealerships as "middlemen", you get the same, or better, coverage at a much lower price.
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- Why are your prices less than a dealership or other online company?
We are a wholesaler of vehicle service contracts versus a dealership being a retailer. Thus, our direct relationship with you, the consumer, means we eliminate the dealership as a "middleman". Plus, a dealership's price reflects the profit needed to cover it's high overhead expenses and massive inventory costs. The efficiencies of Internet marketing and delivery further reduces our cost of doing business, and we shop coverage options from multiple A+ ("Superior") rated insurance companies to get you the best coverage at the lowest price available. Combining these advantages results in substantial savings that we pass along to the consumer.
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- How do I know that my claims will be paid?
All of our agreements are insured and reinsured by insurance companies rated A+ ("Superior") or higher by A.M. Best Company, the world's oldest and most authoritative source of insurance company ratings and information. We continually monitor our partner insurance companies' ratings, payment history and financial stability so that we only offer you choices from companies that have a proven track record of stability and reliability.
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- Who insures or reinsures your extended warranties?
Because we provide coverage plans offered by multiple insurance companies to bring you the best coverage at the lowest price, there isn't a definitive answer to this question. However, every warranty is insured or reinsured by a company rated A+ ("Superior") or higher by the industry's leading authority on insurance companies' financial strength and stability, A.M. Best Company. We also confirm that we do not offer you a warranty from an insurance company with outstanding complaints filed with any state's Attorney General office.
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