Frequently Asked Questions

Know what you are buying. Simple advice. Service Contracts are filled with fine print and confusing information—so make sure you get exactly what you need by asking the right questions and making an informed decision.

To help you, we’ve compiled a list of answers to some of the most frequently asked questions we receive from customers just like you. And remember, if you have additional questions you can always call and talk to one of us.

  • What is an extended vehicle service contract or extended auto warranty?

    Most new vehicles come with a 3 year /36,000 mile bumper-to-bumper (comprehensive) manufacturer’s warranty—guaranteeing that in the event of a mechanical malfunction or breakage of faulty part before the 3 year / 36,000 mile mark, then the manufacturer is responsible for all necessary repairs.

    After the manufacturer’s warranty expires you can purchase an extended service contract, which provides repairs for covered components during a specific period of time or a certain number of miles. Service contracts vary greatly, all offering differing levels of protection, types of protection, cost of deductible and duration of coverage.

  • How do extended auto service contracts work?

    An extended auto service contract is basically an agreement with an insurer to pay for parts and labor in the event of a vehicle malfunction. When your car breaks down you can take it to a certified repair facility of your choice, have your mechanic call Auto Repair Protection, and if the broken parts and labor are covered by your service contract, get it all paid for immediately by company credit card.

  • How will I know what is covered and what isn’t?

    Every extended service contract has a very specific list of covered components (parts). Some contracts offer bumper-to-bumper coverage—normal wear and tear sometimes included and sometimes excluded—others only offer powertrain coverage—providing repairs and parts in the event of major malfunction. Read your service contract carefully before you purchase so that you understand exactly what is covered. All covered and uncovered components will be spelled out carefully.

    Service contracts generally do include things like your transmission and the lubricated parts contained within your engine. Contracts don’t generally include things like windshield wipers, break pads, gas caps or upholstery.

    Service Contracts require you to complete all routine maintenance specified by the vehicle owner’s manual. Neglecting a car is a frequent cause for claim denial. So change that oil every 3,000 miles and keep accurate records and receipts for any work you have done on your vehicle. Your car (and our service department) will thank you.

  • What makes a good extended service contract?

    A good service contract is backed by one of the highest rated insurance companies, allows repairs to be made at any certified shop, and pays claims in full up front with the company credit card. A really great contract also provides roadside assistance, trip interruption insurance and rental car benefits.

  • What types of extended auto service contracts are there?

    Powertrain Service Contract
    Covers the engine, transmission, and other parts of the drivetrain (What is referred to as the powertrain) only, which is defined as the 29 parts of the vehicle through which oil flows. These are the parts least likely to fail.

    Bumper to Bumper
    Covers nearly all of the mechanical systems of the vehicle, from front bumper to back bumper; except for those on the "exclusion list", listing the parts that are NOT covered by the extended service contract. It is much easier for a customer to see a short list of items that are not covered and know that everything else is.

    Named Component Contract
    Covers the major mechanical systems of the vehicle from mechanical breakdown and mechanical failure. If the part is not listed, it's not covered by the contract.

    Roadside assistance and travel reimbursement plans are typically offered as part of the extended auto service contract. Some benefits even offer free lodging and meals if your vehicle breaks down on a trip.

  • What assurance do I have that any claims will be paid in years to come?

    All of our contracts are directly insured by an AM Best “Excellent” rated insurance company. This means that the insurance company must follow all state regulations and adhere to state insurance guidelines regarding financial solvency and financial stability. These insurance filings can be located through your state insurance company.

  • Where is the Auto Repair Protection contract honored?

    You have the option of taking your vehicle to your dealership or any ASE certified repair facility nationwide. Additionally, your new and used car extended service contract is accepted at national repair facilities such as Pep Boys, Firestone, AAMCO, and All Tune and Lube as well many others.

  • How are claims paid and what is the claims process?

    If your vehicle breaks down or is in need of repair, take it or have it towed to any ASE certified repair facility and present your service agreement to the Service Department before he or she begins any repairs. After the shop diagnoses the problem, they will call the claims administrator and receive repair authorization for all covered repairs.

    All claims are paid directly to the repair facility of your choice with a corporate credit card. You will not have to wait for reimbursement.

  • What is a deductible and how does it work?

    A deductable is the amount of money that you must pay out of pocket before your Service Contract kicks in. Normally it is a fixed quantity associated with your policy. Generally, the higher your deductable, the lower your monthly premium. A more expensive, extensive plan with a high premium generally has a lower deductable. It depends on what plan you have selected as the best fit for your financial situation.

    For example, if you have a plan with a $200 deductable and your total cost of repairs is $1000, then you must pay the first $200 and then your policy covers the additional $800.

  • What additional benefits are included in your service contract plan?

    24-hour roadside assistance, rental car benefits, trip interruption benefits and towing benefits are all included in our policies. Please refer to each policy for the specific details regarding these additional benefits as they vary from policy to policy.

  • Is my service contract transferable?

    A deductable is the amount of money that you must pay out of pocket before your Service Contract kicks in. Normally it is a fixed quantity associated with your policy. Generally, the higher your deductable, the lower your monthly premium. A more expensive, extensive plan with a high premium generally has a lower deductable. It depends on what plan you have selected as the best fit for your financial situation.

    Yes, for a small fee you can transfer your service contract to a private party or an individual. This option adds value to the resale of your vehicle.

  • When can I cancel my service contract?

    If the service contract is cancelled within 60 days (new vehicle plans) or 30 days (preowned vehicle plans) from the date shown on the registration page and no claims have been made, you will receive a full refund.

    If a claim has been made against your contract, or if the contract has been in effect more than 60 days (new vehicle plans) or 30 days (pre-owned vehicle plans), a pro-rated refund will be calculated based on whichever is greater: the length of time the contract is in place or the miles driven compared to the total time or mileage of your contract term, less any applicable cancellation fee.

    Cancellation provisions vary by state. Please refer to the actual service contract for provisions relating to your state.