Auto Service Contract FAQ's
Our FAQs are divided into the following categories:
- Purchasing MBP
- MBP Ownership & Features
- Vehicle Eligibility
- Claims & Repairs
- What's Covered
- The Insurance Carrier & Your Security
- Definitions
Purchasing MBP
I have had good luck with my vehicle so far. Do I really need Mechanical Breakdown Protection?
A Mechanical Breakdown Protection plan buys you "Peace-Of-Mind" for "Pennies Per Day".
A Mechanical Breakdown Protection plan will help insure that your vehicle is kept in the best repair condition and it can save you thousands in the event of mechanical failure during the term of your coverage. Vehicles are becoming increasingly complex. Consequently, a single major repair typically can cost more than the cost of mechanical breakdown coverage.
I'm still covered by the manufacturer. Why not wait until later to purchase Mechanical Breakdown Protection?
The pricing of our extended warranty is based on mileage, age and other factors. The sooner you purchase your extended warranty, the less it will cost. As your vehicle gets older, the price for protection increases and the available terms of coverage (months/miles) decreases. You also run the risk of becoming ineligible for coverage the longer you wait.
Another thing to consider is that pricing may increase over time due to increasing parts and labor prices. Lock in today's low prices and protect yourself from tomorrow's rising repair rates.
Can I buy this same type of coverage through my dealer?
Yes you can! But be prepared to pay two to three times as much for less coverage. You may find that we offer you longer and more comprehensive coverage for less, with much lower deductibles. In addition, your Mechanical Breakdown Protection Plan allows you to take your vehicle to any licensed repair facility (in the US and Canada) and includes valuable other benefits such as:
- Rental Car
- Roadside Assistance (including towing)
- Tire Protection
- Trip Interruption
For a complete list of our MBP features and benefits, click here.
How much does Mechanical Breakdown Protection cost?
It depends! Our Mechanical Breakdown Protection Plans provide Peace-of-Mind for "Pennies Per Day"! Use our FREE state-of-the-art online quoting system to determine your cost.
How do I purchase Mechanical Breakdown Protection?
Start with a FREE Quote. Our state-of-the-art online quoting system will step you through the process. You will not be asked for any personal identifying information until you decide to "Submit" or "Save" your quote. When you "Submit" or "Save" your quote, you will be prompted for your name, telephone number and address. By submitting your quote, you're requesting one of our loan service representatives to contact you to complete the transaction.
Am I obligated to purchase Mechanical Breakdown Protection if I request a quote?
Our quotes are really FREE! In fact you can use our state-of-the-art online quoting system to receive as many FREE quotes as you need. We won't ask you for any personal identifying information until you "Save" or "Submit" your quote.
What if I am not satisfied with my purchase?
We offer a 60-day "Free Look". If you are not satisfied with your purchase, you can cancel within the first 60 days and receive a 100% refund. If you cancel after the first 60 days you may be eligible for a partial refund.
MBP Ownership & Features
What is my responsibility for maintaining my vehicle if I purchase Mechanical Breakdown Protection?
You are required to have all of the manufacturer's recommended service and maintenance for your vehicle completed by a licensed repair/service facility. You must keep verifiable receipts and work orders indicating the date, mileage and service performed.
What are the most important things to remember after I purchase an extended warranty?
- Call us before any repair work is started on your vehicle
- Change your oil and filters on a regular basis
- Perform other recommended maintenance
- Keep your receipts for the record
Can I transfer my Mechanical Breakdown Protection Plan if I sell my vehicle?
Your extended service plan can be transferred to any private party who purchases your vehicle. This feature also increases the resale value of your vehicle and makes it easier to find a buyer.
What if I trade my vehicle?
If you decide to trade in your vehicle (with a dealership), call our 800 number and we will calculate a pro-rated refund.
What if I want to cancel my contract/policy?
You're entitled to a pro-rated refund of the unused portion of your coverage agreement. Your contract/policy contains full details on our refund provisions.
What happens when my Mechanical Breakdown Protection Plan expires?
Depending on the year, make, model and other factors, you may be able to purchase a new Mechanical Breakdown Protection Plan contract. Otherwise, your coverage expires according to the plan/term you purchased. To determine if you're vehicle qualifies, simply user our FREE state-of-the-art online quoting system.
Does your plan include a "waiting period"? When does my Mechanical Breakdown Protection Plan become effective?
Unless your vehicle qualifies through our "Open Enrollment" eligibility program, your Mechanical Breakdown Plan is effective the day you purchase it...there is no "waiting period". However, remember that breakdowns that are found to be pre-existing will not be covered.
If your vehicle qualifies through our "Open Enrollment" eligibility program, there is a 30-day, 1,000 mile claim exclusion period from the application purchase date and miles.
Vehicle Eligibility
Are vehicles with pre-existing conditions covered?
No. Benefits are not provided for a condition which can be shown to have existed prior to the effective date of the contract, or which existed prior to the expiration of the manufacturer's warranty.
If my vehicle is out of the manufacturer's warranty, can I still get coverage?
You may still be eligible to purchase our Mechanical Breakdown Protection depending upon the age, mileage, purchase date and other factors.
What is the oldest a vehicle can be and the maximum mileage I can have on my car and still be eligible for coverage?
It depends! To see if your vehicle qualifies, simply use our FREE state-of-the-art online quoting system.
I bought a used car from a private party, can I get coverage?
You are eligible for the same coverage no matter who you purchase the vehicle from. However, eligibility for coverage may depend upon when you purchased the vehicle and other factors. To determine if your vehicle is eligible, simply use our FREE state-of-the-art online quoting system.
Under what circumstances is a vehicle inspection required prior to enrollment?
No vehicle inspection is required in order to purchase our plans. If you meet our underwriting guidelines and are able to obtain a quote from our system, you may apply for coverage. Keep in mind, though, that benefits are not provided for a condition which can be shown to have existed prior to the effective date of the contract/policy, or which existed prior to the expiration of the manufacturer's warranty.
Do you provide coverage for new as well as used vehicles?
Yes. If your vehicle qualifies, we provide coverage on both new and pre-owned vehicles. The vehicle's age, mileage and other factors will determine the coverage that is available. To determine if your vehicle qualifies for a Mechanical Breakdown Protection Plan, simply use our FREE state-of-the-art quoting system.
Do you provide coverage for SUV's and trucks?
Yes. Most SUV's and most trucks/vans under 1 ton qualify for extended service plans. To see if your vehicle qualifies, simply use our FREE state-of-the-art online quoting system.
Do you provide coverage for one-ton vehicles?
It depends! To determine if your vehicle qualifies for a Mechanical Breakdown Protection Plan, simply use our FREE state-of-the-art quoting system.
Are light commercial-use vehicles eligible for coverage?
Yes, commercial-use vehicles are eligible for coverage for an additional $300 surcharge.
What vehicles are ineligible for a Mechanical Breakdown Protection Plan?
If it is not listed in our FREE state-of-the-art online quoting system, then it is not covered. To determine if your vehicle is eligible (or not) simply use our FREE state-of-the-art online quoting system. Examples of excluded vehicles include:
- Limited Production
- Exotic, High Performance Vehicles
- Modified or Concept Vehicles
- Gray Market Vehicles
- Any vehicle with a "salvage", "junk", "flood damage" or "reconstructed" title
- Any vehicle where the odometer has been altered in any way
- Any vehicle that has ceased to operate and repairs have not been made immediately
- Any vehicle that has been declared a "lemon"
- Any vehicle With a Known Failure at the Time of Sale
- Any vehicle that does not have a valid manufacturer VIN (Vehicle Identification Number)
- Any vehicle with engine, transmission, drive axle, frame, suspension, emissions and/or exhaust modifications
- Any vehicle with a "Lift Kit" installed
Claims & Repairs
Do I have to go back to my original dealer for repairs?
The choice is yours. You can take your vehicle to any licensed repair facility you choose in the US and Canada.
What if I'm not near my home when my vehicle breaks down?
You can take your vehicle to any licensed repair facility throughout the United States and Canada. Our claims department can be reached through our toll-free telephone number 800-654-8455 M-F 8am-7pm, Sat 8am - 2:00pm Central time.
What if I break down after hours?
Customers unable to get prior authorization before the repairs can be completed can, at their own discretion, have the repairs completed at their own expense and will be reimbursed for all covered components. They must report the emergency repairs to the claims department on the first normal business day following the emergency.
How much is my deductible?
The deductible varies depending upon the plan and program quoted. Lower deductibles are available for a small charge. To determine the deductible options, simply use our FREE state-of-the-art online quoting system.
Is the deductible per repair or per visit?
Your deductible (if any) is applied per repair visit...so, if you have 3 different components repaired during one visit to the repair facility, you will incur only one deductible.
What happens if my repair facility or dealership does not want to accept your plan?
Once the repair is authorized and completed, we pay the repair facility/dealership immediately by credit card. Repair facilities and dealerships are generally eager to accept the business we refer to them. In the rare event that a dealer does not accept our payment and you have to pay out of pocket, you will be reimbursed once you send in documentation of payment for the authorized repairs.
Can I do my own repairs?
No. Repairs must be performed at a Licensed Repair Facility.
If I have a claim on my vehicle, what is the procedure?
If your vehicle needs repair, drive it (or have it towed) to the nearest licensed repair facility and present your contract/policy to the service department. The repair facility will call our claims administrator to receive repair authorization for all your covered repairs. Claims are paid directly to the repair facility via our corporate credit card (you do not pay "out of pocket" except for your deductible).
The following is a summary of the procedure...
- Take your vehicle to a licensed service facility in the United States or Canada.
- Give the service manager your Mechanical Breakdown Protection Plan information.
- The service manager will determine the necessary repairs and should call the Plan Administrator to obtain a repair authorization number before any repairs are made.
- After repairs are completed, the service facility will ask you to authorize the repair order with your signature. He will then fax the authorized repair order to the Plan Administrator.
- The Plan Administrator will pay the service facility via corporate credit card.
- If applicable, you pay only your deductible.
What's Covered
Are parts, labor and applicable taxes covered?
Our Plans cover 100% of all covered components, parts and labor charges including applicable taxes less any deductible that may apply, based on published list prices and established industry time and labor guides. In certain states that do not require sales tax on the service contract purchase, there may be sales tax charged on the deductible.
Does your Mechanical Breakdown Protection Plan cover "Wear and Tear"?
Yes, our plans will cover a part that has worn beyond the "Manufacturer's Tolerance" and has resulted in a verifiable mechanical breakdown of the part, not just a gradual reduction of operating performance. Please keep in mind that routine maintenance items like brake pads/shoes, spark plugs, tune-up items, oil and Lubricant Changes, etc. are not covered.
Are maintenance items such as oil changes and brake pads covered?
Routine maintenance items such as oil changes, filters, brake pads, spark plugs, tune ups, etc. are not covered by your Mechanical Breakdown Protection plan. You must retain verifiable receipts that you have had the recommended maintenance service performed on your vehicle.
Do you cover damage due to overheating?
We do not have an overheating exclusion. We pay all costs for covered components provided the vehicle does not overheat due to negligence.
Are seals and gaskets covered?
Yes, seals and gaskets are covered for all covered components.
The Insurance Carrier & Your Security
What protection do I have that my claim will be paid in the future?
All of our products are underwritten by A rated insurance companies. You can be confident that your claims will be paid.
Are your Mechanical Breakdown Protection plans insured?
Our warranties are fully insured by AM Best A+ rated (Superior) insurers.
Definitions
What is Mechanical Breakdown Protection?
Mechanical Breakdown Protection, also known as a Vehicle Service Contract or and Extended Warranty, is automobile protection that extends beyond the manufacturer's factory warranty and covers repairs of unexpected mechanical breakdowns. For the period of time the contract is in effect, you are assured that covered components of your vehicle will be repaired in the event of failure, including labor, subject to any applicable deductible.
What does it mean to be "Under Original Manufacturer's Warranty"?
In order for your vehicle to be considered "under manfacturer's warranty", your vehicle must have at least 1 day and 1 mile remaining on the original bumper-to-bumper warranty provided to you by your vehicle's manufacturer.
What is the "Original Manufacturer's Warranty?"
The Original Manufacturer's Warranty is the full "bumper-to-bumper" warranty that is provided by the manufacturer for a new vehicle. A typical warranty is limited to 36 months or 36,000 miles, whichever comes first.
What is the "In-Service" date?
The in-service date of a vehicle, also known as the manufacturer's warranty start date, is the date the manufacturer's factory warranty went in to effect, generally the original purchase date of the vehicle when it was brand new.
Where is my Vehicle Identification Number (VIN)?
Your Vehicle Identification Number (VIN) can be located in any of the following places.
- On your vehicle Insurance Card
- On a tag on the dashboard
- On a sticker that is attached to the driver-side door edge
- On your vehicle registration
What is the definition of a "Light Commercial-Use" vehicle?
Business/Commercial use means the use of your vehicle for purposes other than personal and private use. Some examples of business/commercial use are farming, ranching, deliveries, construction, rodeo, etc.
What is the Money Back Guarantee?
Now you can enjoy the benefits of Mechanical Breakdown Protection risk free! If your vehicle qualifies for our Money Back Guarantee Program, and if you never experience a claim during the term of your contract, you will qualify to receive a 100% refund of your premium! You have nothing to lose, so don't hesitate to take advantage of this program.
What is the difference between a "Named Exclusion" plan and a "Named Component" plan?
These are the two primary types of extended service plans. "Named Exclusion" is the more comprehensive extended service plan. In this extended service plan, every component is included unless a component is specifically named to be excluded. In the "Named Component" extended service plan, only the parts that are specifically named are covered.
What does it mean to be externally refinanced at a competing institution?
An external refinance is a loan resulting from the payoff of a loan from a competing financial institution.
