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. Warranty Direct'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.
2.
Why should I choose Warranty Direct over the others?
Warranty Direct
is the consumer division of one of the nation's oldest and
largest warranty companies. You can buy from us with
complete confidence. This 25 year old company has received
numerous distinctions of its financial stability including
being named a Forbes Magazine Top 200 Company three
times. 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 well over 1.5 million plans sold,, assets in
excess of $140 million and over $400 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, banks and credit unions. Others rely solely on the
Internet for all their business, that's risky. That's
peace of mind.
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 $1 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.
3.
Are the warranties insured?
A solid warranty
company will offer you three layers of protection, the
administrator, the insurer and the reinsurer. 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
(3 times named to Forbes Magazine Top 200 Companies list).
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 $1 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.
4.
What is Wear and Tear coverage?
Warranty Direct
provides coverage for parts that break as well as those that
wear out. All covered parts include a "wear and tear"
provision. The parts need not break for you to be covered.
If they wear out prematurely, you're covered with Warranty
Direct.
Many plans out there have " wear-and-tear" exclusions; that
means you are buying less coverage. Plans that do not cover
"wear-and-tear" won't cover such things as your struts,
piston rings, valves or other expensive components that wear
out. Others may say they cover "wear-and-tear" but we urge
you to look at the contract. Warranty Direct uses the term
Failure, others use the term Breakdown. Ask them what it
means; better yet, read the definitions section of the
contract. Beware of plans that call themselves "Mechanical
Breakdown Plans". They often have a "wear-and-tear"
exclusion, thus offering you less coverage.
5.
What is the no In-Service date program?
Warranty Direct
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).
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,
Warranty Direct 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,
Warranty Direct's FREE Roadside Assistance makes sure you
get taken care of... fast!
7.
What benefits do you offer?
When you experience a
mechanical breakdown, Warranty Direct is there with you even
before you file your claim. In addition to the most
comprehensive coverages and fastest claims handling in the
industry, your Warranty Direct 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.
In addition, your contract also provides for car rental
reimbursement ($30 per day up to 8 days) and trip
interruption protection ($75 per day for up to 3 days).
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.
» Click here to look up your
repair facility
9.
How are claims paid?
Warranty Direct 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 Warranty Direct 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 18,000 repair facilities across the
country, call us to look up yours.
10.
How does the deductible work?
With Warranty Direct,
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.
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.
12.
Why buy it now? I'm still covered by the manufacturer.
Extended warranties
cost less the earlier you buy them. The cost for coverage
rises as your vehicle ages and accrues 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, if still
in effect, has been factored into your price quote. The more
factory warranty you have remaining, the lower the cost of
the warranty extension. You may use our peace of mind
benefits for the full term of the warranty agreement.
If you buy an extension to 100,000 miles today or in 2
years, it will still expire at 100,000 miles. The difference
is the cost which will be higher in 2 years. Also, the
length of the warranty offered to you in two years will be
less. We can offer you the lowest cost and longest term the
sooner you purchase the warranty. Buying now will lock into
today's lower price and protect yourself from tomorrow's
rising repair rates.
Take advantage of the our peace of mind benefits (FREE 24x7
roadside assistance, car rental, trip interruption) for the
entire life of the agreement, even while you are covered by
the manufacturer's warranty.
13.
Can I buy this same type of coverage through my dealer?
Perhaps, but plan on
paying as much as 40% more for the similar coverage and be
required to have the repairs done at the dealer facility.
With Warranty Direct, you have the freedom to go for repair
service wherever you like throughout the United States and
Canada. Many dealer plans also have "wear-and-tear" and
overheating exclusions and do not provide the extensive
benefits that Warranty Direct does. Most dealer coverage
begins at the in-service date, we do NOT. We offer you
longer and more comprehensive coverage for less.
14.
I've seen lower prices on the Web. Why should I buy a
Warranty Direct plan?
The lowest price
often does not provide the best value; a closer look will
reveal a different picture. Warranty Direct offers the best
value in extended warranties. We are aware of no other
company that offers you coverage as comprehensive as ours,
with fewer exclusions, contractual benefits and the
financial stability of a 25 year old company that has sold
and administered well over 1.5 million warranties. Many web
sites have appeared offering low prices only to disappear a
few months later. Sadly, this has left many people with no
protection for their vehicle. Research the company you are
buying from as well as the company that will handle the
claims. Be an informed consumer. Quotes obtained via the
Internet may not tell the whole story either. Will there be
additional charges for certain components? Are you receiving
prices for all possible coverages? With Warranty Direct, you
are quoted ALL available coverages and terms.
One should look at the contract and its language. That is
where many companies hide the language that they can use to
deny claims. Do they exclude wear-and-tear, overheating or
certain parts of your vehicle? What special requirements are
written into their contract? How long have they been in
business? Are they an Internet start-up company? Are
adequate claims reserves set aside to assure sufficient
funds to pay claims? Will they allow you to preview the
actual contract you are buying? These are important
questions to ask of your warranty company, questions we're
happy to answer and provide verifiable ways to check.
Our customers tell us they are looking for comprehensive
coverage and benefits, and a financially stable company that
is documented. No other company can match our reputation,
comprehensive coverage, outstanding benefits and longevity.
We continue to lead the industry with such innovations as
"wear-and-tear" coverage and our " no in-service date" and
our innovative "Wrap" programs. Our sign-and-drive roadside
assistance, car rental reimbursement, trip interruption are
all part of one insured contract. You might find a lower
price but you won't find a better value.
15.
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 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.
» Click here to look up your
repair facility
16.
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.
17.
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.
18.
Is my warranty renewable?
Yes, you may renew
your warranty for continuous one year increments at the then
prevailing renewal rates. Vehicles must meet the current
underwriting guidelines at renewal time.
19.
Do you have a payment plan?
Warranty Direct
offers EZPay, an interest free payment plan. You can get
started with a small down payment and spread payments out
over many months. We accept all major credit cards for
payment plans. Please call a Certified Warranty Advisor for
further details.
20.
What happens with the money I pay Warranty Direct?
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. Since we've done
this for 25 years, we have been through the cycles with our
customers and are expert at putting away adequate funds in
reserve to pay 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.
21.
How do I enroll my vehicle with Warranty Direct?
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. A Warranty Direct membership card will also
be included.
22.
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:
