1. What is a vehicle service contract/extended warranty?
Once the manufacturer's warranty expires, you have nothing to protect you from expensive vehicle repairs. Most vehicles come with a 3 year/36,000 mile bumper-to-bumper warranty. Once that expires, you have no protection against breakdowns or failures. Auto Warranty US's service contract assures that for a specified amount of time and/or mileage, both parts labor and sales tax (if applicable) required for replacement or repair of covered mechanical systems in your vehicle will be paid.
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2. Why should I choose Auto Warranty US over the others?
Auto Warranty US is a division of one of the nations oldest and largest warranty companies. You can buy from us with complete confidence. When looking at extended warranty companies, this financial stability is of the utmost importance. It's important to know that we handle our own claims, we never send you off to an unknown third party. Our experience is unmatched with nearly 2 million plans sold, assets in excess of $165 million and over $500 million in paid claims. When looking at extended warranty companies, financial stability should be of utmost importance; after all, you will need them to be there down the road to pay your claims.
We are NOT an Internet only company; we have a long history of selling plans through wholesale channels such as car dealers, manufacturers, banks and credit unions. That's peace of mind. Others rely solely on the Internet for all their business, that's risky.
In addition to our financial stability, all our extended warranties are insured. For even greater protection, they are reinsured by an "A' rated A.M. Best insurance company with over $3 billion in assets. Insurance provides peace of mind but most important is the financial stability of the administrator, as they pay for your vehicle repairs. And if that's not enough, all plans come with a money back guarantee. You'll be hard pressed to find a more financially stable administrator than us. We can't reiterate how important that is.
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3. Are the warranties insured?
A solid warranty company will offer you three layers of protection, the administrator, the insurer and the re-insurer. Insurance provides peace of mind; however the administrator is the company that handles claims. They are often NOT the company selling you your warranty. Their financial strength is the most important factor in buying a warranty. We administer our own warranties and have documented financial stability.
In addition to our financial stability, all our extended warranties are insured. For even greater protection, they are reinsured by an "A' rated A.M. Best insurance company with over $3 billion in assets. Insurance provides peace of mind but most important is the financial stability of the administrator, as they pay for your vehicle repairs. And if that's not enough, all plans come with a money back guarantee. You'll be hard pressed to find a more financially stable administrator than us. We can't reiterate how important that is.
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4. What is Wear and Tear coverage?
Wear and tear protection is the highest level of coverage one can purchase. Auto Warranty provides coverage for parts that break as well as those that wear out. It is a much broader level of coverage than the mechanical breakdown only plans offered elsewhere. All Auto Warranty US plans include coverage for wear-and-tear failures.
Many extended warranties exclude repairs needed due to "wear and tear." A large number of car repairs are needed because a part wears out from a long period of use, not because it was poorly built.
Many extended warranties define "mechanical breakdown" as a defect in parts and workmanship as supplied by the manufacturer, or a defect that makes the part unable to perform the function for which it was designed. Often, they will state that the gradual reduction in operating performance (wear-and-tear) is not covered. Service contracts that exclude wear and tear will not cover repairs needed because a part's performance has gradually deteriorated because of normal wear and tear, unless a mechanical breakdown has occurred.
The more miles on a car when a repair becomes necessary, the more likely it is that the repair will be needed because a part wore out, rather than because the part broke due to poor manufacturing. Again, many extended warranties do not cover parts that wear out.
Before buying an extended warranty, you should carefully review what is covered and not covered to see whether wear and tear claims are excluded from coverage. That way, if it is not clear whether a repair is needed due to a manufacturing defect or simple wear and tear, it is more likely that the service contract company will pay for the repair. It is a mistake to assume that a repair agreement will cover every repair your car may need.
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5. What is the no In-Service date program?
Auto Warranty offers a no in-service date program. All our traditional auto warranties begin on the day you buy them, not the in-service date of the car. Quite simply, we offer you more time than the others. If you purchase a 4 year /100,000 mile warranty today, it will expire 4 years from today or when your odometer reaches 100,000 miles. Beware of plans that start your coverage from the day the vehicle was purchased brand new (in-service date). .
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6. Do you cover damage due to overheating?
We do NOT have an overheating exclusion in our contract. While many warranty providers shy away from damage caused by overheating, Auto Warranty US takes a much different approach. Although damage sustained when a vehicle overheats can be severe, we take care of all repair costs for covered components provided the vehicle does not overheat due to negligence and provided you act immediately to prevent unnecessary damage when your vehicle overheats. In fact, if your vehicle overheats and you require a tow or fluid replacement, Auto Warranty US's FREE Roadside Assistance makes sure you get taken care of... fast!
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7. What benefits do you offer?
When you experience a mechanical breakdown, Auto Warranty US is there with you even before you file your claim. In addition to the most comprehensive coverage's and fastest claims handling in the industry, your Auto Warranty US agreement includes the most comprehensive peace of mind benefits package in the industry. Assistance is available 24 x 7; you'll never be stranded on the side of the road with no one to call. Best of all, it's all part of your fully insured agreement.
Our plans provide protection for you 24 hours a day, 7 days a week. All our plans include FREE membership in a nationwide roadside assistance plan. Simply call the toll free number anytime you need help. This benefit is extended to you for the full term of your warranty agreement. This is a true roadside assistance plan, not a limited reimbursement plan. Need a tow? Flat tire changed? Lock your keys in the car? Run out of gas? Just call the toll-free number and help will be on the way.
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8. Where can I take my vehicle for repairs?
Repairs can be made at the repair facility of your choice (dealer, national chain, local mechanic) anywhere in the United States or Canada. We have an extensive database with thousands of repair facilities who have already accepted our plans and can even help you locate a reputable repair facility anywhere in the US. You will not find a plan more widely accepted than ours.
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9. How are claims paid?
Auto Warranty lets you use the repair facility of your choice (dealer, national chain, local mechanic) and pays your claim quickly and efficiently over the phone via our corporate credit card. Simply present your Auto Warranty US Membership Card to the service professional, who in turn will contact our claims department. You simply pay your deductible (if any). There is no paperwork, no need to lay out any money and no limit on the number of claims you may have. We cover parts, labor and even sales tax, if applicable. With over 50 people dedicated to handling claims, we are proud that we process claims faster than anyone else in the industry. We have done business with over 21,000 repair facilities across the country, call us to look up yours.
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10. How does the deductible work?
With Auto Warranty, each repair visit, no matter how many items need to be fixed will only require payment of one deductible. Many plans offer a zero deductible option where you'll never reach into your pocket for a covered repair. Some plans even cover the deductible on your manufacturer's warranty.
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11. Do I really need an Extended Warranty?
There are many reasons to purchase an extended warranty. Your vehicle is one of your biggest investments. An extended warranty will ensure it is always in the best mechanical condition. With the complexity of today's vehicles, one major repair often costs more than the extended warranty. Hourly labor rates can top $100 or more per hour in some markets.
Since our warranty is transferable, it increases the resale value to potential buyers. Who wouldn't want to own a vehicle that comes protected from repair bills? Our contract also provides for a pro-rated refund for the life of your contract should you sell your vehicle and elect not to transfer the warranty to the new owner.
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12. Why buy it now? I'm still covered by the manufacturer.
A common misconception is that by waiting to purchase extended coverage, you will get coverage for a longer time. Much like life insurance a cost rise as we age, a cost for a car warranty will rise as the vehicle ages and accrues mileage. You will be offered the longest terms and the lowest rates for newer vehicles with lower mileage.
We understand that you may have a warranty from the manufacturer. Our coverage is simply an extension of that, not double coverage. The manufacturer's warranty has been factored into your price quote. The more factory warranty you have remaining, the lower the cost and greater the length of the warranty extension. In other words, you are paying for tomorrow's coverage at today's rates. In addition, our Roadside Assistance benefit, with $100 towing limits may prove to be invaluable during the Manufacturer's Warranty period.
FACT: The newer your vehicle, the lower the rates for extended coverage.
Waiting may also carry other risks. Coverage costs rise as repair rates do. Labor rates have been steadily rising over the past few years. It is not uncommon for a repair facility to charge $100 or more per labor hour. As more repair data becomes available for your vehicle, its costs may also rise. These factors can cause the rates for your vehicle to rise should you elect to delay purchasing coverage.
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13. I've seen lower prices on the Web. Why should I buy an Auto Warranty plan?
When customers question our pricing, we often find that no one has taken the time to explain how extended coverage really works. Without that knowledge, price is the only thing one can base their decision on. Buying a warranty is all about transferring your risk of costly repairs and having your claims paid. Low prices may look good up front but they are often coupled with low levels of service and many restrictive contract clauses which will lead to many out of pocket costs for you on each claim. Here are some important facts one must consider when comparing different offerings.
We are not an online only company. Auto Warranty US is a division of one of the oldest and largest independent automobile warranty providers in the US. In addition to offering our car warranties direct to consumers, over 2,200 manufacturers, dealers, banks and credit unions choose to market our coverage. As such, our coverage compares more favorably to those of the major manufacturers (GM, Ford, and Chrysler) and not the Internet coverage's. In addition, we handle our own claims (no third party outsourcing) and have the most solid insurance backing.
With the online companies, you will likely have further out of pocket expenses with their plans. They operate much like HMO plans do. Their contracts state that they will use certain manuals to determine the labor rate they will pay. Your dealer will likely charge more than that. You will be responsible for paying the difference on every repair. We pay the labor rate the dealer normally charges.
A review of the online companies shows very restrictive contract language. Here are a few clauses you should be leery of:
At the sole discretion of the Administrator…
Parts may be used or recycled…
You must maintain your vehicle according to the severe requirements of your manufacturer (that will double your maintenance costs)
Burned/worn valves/guides, valve grinding, worn rings and burned pistons are not covered. (These are classic wear and tear failures)
Any covered part that has not failed; this includes seepage of seals and gaskets.
The gradual reduction in operating performance is not covered.
National flat rate hourly guides
You will NOT find these restrictive clauses in an Auto Warranty US contract.
Many repair facilities will not accept plans with those clauses. As we sell primarily through dealers, you will not have these problems with us. Dealers don't sell plans that cause them problems when trying to get claims paid.
What about claims handling and customer service? These areas are not as important to the low price companies. Handling your claim will be hassle free with Auto Warranty US. No other company handles claims faster or more efficiently. With over 50 dedicated Claims Advisors, we authorize claims in an average of six (6) minutes or less.
If you'd allow us the opportunity, we can show you that our rates will be less if you consider total costs over the full life of the warranty. We may cost a little more, but we provide more extensive coverage and benefits.
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14. What if my repair facility won't take your plan?
It is rare that a repair facility will not accept our plans as we pay them immediately and utilize industry standard manuals to determine pricing. When they find out they do not have to bill us, they are eager to accept the business we refer to them. In addition, they also want your routine maintenance business, so it is rare that they will turn down the rest of your business. We would be happy to call your repair facility to establish a relationship before you buy. We also maintain a database of tens of thousands of repair facilities that have already accepted our plan; yours may already be there. In the rare event a repair facility will not accept our direct credit card payment; we will reimburse you promptly for the authorized amount.
FACT: Honest and reputable repair facilities will accept an Auto Warranty US plan.
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15. What if I want to cancel my warranty?
Our agreement contains full details on refunds. You have either 30 or 60 days to obtain a full and prompt refund. After that, you are entitled to a pro rata refund of the unused portion of your contract. Unlike some companies, we do not pro rate your refund from the in-service date of your vehicle.
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16. Is my warranty transferable?
Absolutely, for a modest ($50 or less) transfer fee, you can transfer the warranty to another private purchaser of your vehicle. Vehicles with extended warranties typically offer much higher resale values because the buyer knows they are not going to get hit with huge repair costs.
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17. Do you have a payment plan?
Auto Warranty offers EZPay, a convenient payment plan using your credit or debit card. Simply put as little as 10% down and we will automatically bill your credit or debit card for the balance in as many as 24 equal monthly installments. Each monthly payment will have a $5 service fee added. We can also customize a plan with fewer monthly payments if that fits your needs. Unlike other companies, we will authorize and pay a claim before your policy is paid in full.
Lower down payments (as low as 10%) and longer terms (up to 24 months) may be available for qualified vehicles. Please call to discuss eligibility for special payment plans.
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18. What happens with the money I pay Auto Warranty?
Most of the money you pay us for an extended warranty is deposited in a "claims reserve account". These accounts are fully insured and are strictly designated to pay future claims. With some of our competitors, they oversell their warranty and when reserves are depleted, it then becomes very difficult to get a claim paid.
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19. How do I enroll my vehicle with Auto Warranty?
You may purchase your agreement online using our state-of-the-art, secure software. You may also call a Certified Warranty Advisor who can take your application over the phone. We'll simply need your Vehicle Identification Number (VIN) and an accurate odometer reading. It takes only 7 minutes to protect your vehicle from the high cost of future repairs.
Once enrolled, you will receive your contract booklet which will include full details on coverage and the roadside assistance plan. An Auto Warranty US membership card will also be included.
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20. Where do I get my Vehicle Identification Number (VIN)?
Your VIN is located in several areas and is a unique 17-digit identifier of your vehicle. The most common are:
On the driver's side dashboard of your car
- On your insurance card
- On the title to your vehicle
- On the vehicle's registration card
- On a sticker inside the driver's side door
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21. Does Auto Warranty US have a privacy policy?
Yes we do. In short, any information you provide to us will never be sold or shared with any other company. We only send out relevant emails about your price quote, promotions and valuable information about your vehicle. Requests to unsubscribe from our list are handled immediately.
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22. Are you open 24 hours a day?
We provide 24x7 roadside assistance with all our agreements. Just call the toll-free number in your agreement booklet and help will be on the way.
Our Claims Department maintains some of the longest hours in the industry. They are open Monday-Friday from 8 am-8 pm EST and Saturday from 9:30 am -5pm EST.
Our Sales Department is open Monday-Friday from 9 am-8 pm EST and Saturday from 10 am-4 pm EST. We are closed on Saturdays during the summer. Of course, you can purchase from our secure web site anytime.
Our Customer Service Department is open Monday-Friday from 9 am-6 pm EST.
Some warranty firms claim to be open 24 hours a day. They are, but all they can do is sell you a warranty, not provide help or process a claim.
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23. How do I know I can trust Auto Warranty US?
There are many factors one should consider before selecting a warranty company. Longevity and a proven track record are two important factors. Auto Warranty US is the consumer division of one of the oldest and largest independent automobile warranty providers in the US. In addition to offering our car warranties direct to consumers, over 2,200 manufacturers, dealers, banks and credit unions choose to market our coverage. Why pay the dealer's markup when you can buy similar coverage direct from the source? We're much more than just a web site selling warranties.
Auto Warranty US is a member in excellent standing of the Better Business Bureau and has earned the prestigious BBB Online Privacy designation.
Many of the 50 states have licensing/registration requirements to make sure Auto Warranty US companies are financially sound and/or properly insured. A growing number of states, including New York, Florida and California have very strict requirements when it comes to issuing licenses. Auto Warranty's ability to market in all states reflects our dedication to compliance, financial stability and claims payment history.
For even greater peace of mind, all our products include a written, money back guarantee.
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