Automotive Warranty News

How-To Find Vehicle Identification Number (VIN)?

2008-01-14T09:20:00.004-05:00

The Vehicle Identification Number or VIN number is the unique 17-digit identifier often needed for used car buying. It can be located on most vehicles in several areas.

The most common places to find your VIN number:

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

Sounds simple, but when you don't know where it is,
it can be very frustrating. :-)

What Does Extended Warranty Wear and Tear Coverage Really Mean?

2007-12-10T09:16:00.001-05:00

Most used car warranty policies are not maintenance contracts and that is okay. That just means that you are responsible for routine maintenance items like oil changes ¤ brake pads ¤ windshield wipers etc.

Many buyers and just as many warranty salespeople... confuse this coverage with "wear and tear" coverage. There is a clear distinction and understanding the difference can be valuable to you.

"Wear and tear" is the expected reduction in performance of a part due to the cars age ¤ mileage and/or use. This coverage should be clearly defined in any warranty contract and it should read something like this: "It is the company's responsibility to repair or replace any part that no longer meets the manufacturer's specs whether it is broken or not." Look for this simple statement and be assured that you will never face the rejection of a claim on the grounds that the failure can be attributed to "wear and tear".
See Auto Service Warranty coverage « here.

Does Your Extended Warranty Cover Overheating Damage?

2007-11-12T09:15:00.003-05:00

While many extended warranty companies shy away from damage caused by overheating, Auto Service Warranty 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 Service Warranty's FREE Roadside Assistance makes sure you get taken care of... Fast!

What is the No In-Service Date Program?

2007-10-10T09:10:00.003-04:00

...and why should I care? One major warranty company (that shall remain nameless here) offers a no in-service date program. What's the DIFFERENCE?

Auto Service Warranty (ASW) offers vehicle warranties that BEGIN on the day you buy the warranty and not the in-service date of the car. Quite simply... ASW offers you MORE time than the others.

When 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 being offered by other national companies... that start your coverage from the day the vehicle was purchased brand new, the (in-service date).

Compare your extended auto warranty coverage.

No Extended Warranty for Your Car?

2007-08-13T12:34:00.000-04:00

People regularly ask me why some extended warranty companies refuse to offer them a contract on their high performance car. For example it's pretty difficult to find any warranty company foolish enough to offer coverage on certain vehicles built by Land Rover (possible quality issues, frequent and expensive repairs), Jaguar (expensive repairs), Mercedes AMG ($20,000 for an engine) and many turbo engine models like Porsche etc.

If a warranty company turns you down they should be honest about why. Be more concerned with the company that is crazy enough to cover these cars. First of all you can bet they won't cover wear and tear failures and the foremost thing on their minds will be trying to somehow get out paying your repairs.

My best advice for you if you have a high end car which no warranty company will touch, is to create your own claims reserve account and don't be stingy. Then you can be your own extended warranty.

Where is Your Auto Service Contract Honored?

2007-07-09T12:33:00.000-04:00

Will you be traveling or perhaps moving to another state? Is the contract honored across the United States and Canada? What are the restrictions or limitations on emergency repairs when you are traveling?

Asking these questions up front can save many headaches when you are on the road. Auto Service Warranty allows you to take your vehicle anywhere in the U.S. and Canada for repairs. There are also no restrictions on emergency repairs and roadside assistance whenever you travel in the U.S. and Canada.

Is Your Extended Waranty Transferable?

2007-06-11T12:25:00.000-04:00

Another much overlooked but important perk is the transferability of the contract. Also you will always want to be sure that you can transfer your extended warranty contract to a new owner if you decide to sell the vehicle before the warranty expires.

Not only will prospective buyers feel safer purchasing from you, but they will probably be willing to pay more for the peace of mind a warranty offers. Don't forget to ask about this standard perk. You'll save yourself aggravation and maybe even make a few more dollars when you decide to sell.

Rental Car Reimbursement

2007-05-14T12:22:00.000-04:00

Envision this: You take your vehicle into the shop and the mechanic announces that it will take 2 to 3 days to repair. You have work to do... places to go and people to see! You can't be without your car.

Some auto warranties offer a free rental reimbursement service that will pay for a rental car for 4 days if your own vehicle is ever in the shop for more than a day. Don't overlook this perk while shopping for just the right extended warranty.

If your vehicle has a "salvaged title" by all means let the warranty company know. Otherwise you may make a costly investment only to find out that a salvaged title voids your warranty.

REMEMBER to: Always check a used car's VIN# prior to buying and get the accurate status of the vehicle.

Four Simple Ways to Avoid Rejected Warranty Claims

2007-04-09T12:21:00.000-04:00

First and foremost, always get approval from the warranty company before repairs are done! You'd be surprised how many people are denied re-imbursement for a normally covered claim because they failed to get prior authorization.
Most warranties, if not all, require the owner to follow the manufacturer's maintenance guide for your car or you'll be denied a claim. For example, If your engine dies and it's been over a year since you changed the oil, there is a very good chance that your warranty will not cover the repairs.
If your car overheats, please pull over. Damage caused by continued operation after a failure is not covered. Even a rookie inspector can tell when you kept driving with an overheated engine. Towing it to a repair shop is much cheaper than a rejected $2,000 engine repair and your warranty probably includes a roadside assistance program.
If your vehicle has a "salvaged title", by all means let the warranty company know. Otherwise, you may make a costly investment only to find out that a salvaged title voids the extended warranty. Check any used car's VIN# prior to buying to get the accurate status of the vehicle.

How can I compare extended warranty offers?

2007-03-12T12:22:00.000-04:00

Below you will find a warranty comparison chart that will help you to compare “apples to apples” so to speak. Complete one for each company that you are evaluating. Simply answer the questions “Yes” or “No” or fill in the information.

• Is this a full-service warranty company? Yes____ No____
• Is the plan comprehensive? Yes____ No____
• Is the warranty transferable? Yes____ No____
• Does the contract include wear & tear? Yes____ No____
• Are parts & labor paid at 100% ? Yes____ No____
• Can you choose the repair facility? Yes____ No____
• Does the deductible apply to each visit? Yes____ No____
• Are claims paid with a corp. credit card? Yes____ No____
• Are inspections free and/or random? Yes____ No____
• Zero Interest and Zero Fee Financing? Yes____ No____
• Name of Company: ______________
• Effective Date: ___________
• Miles: _____
• Are the miles “add-on” or “total”? __________
• Months: _____
• Deductible: ______
• Price with Deductible: _______
• Price with Zero Deductible: _______

You'll know you have found a good company and a great deal when the first 10 questions are answered "Yes". Then, choose the best fit for you regarding months, mileage and deductible at the lowest price.

Who should not buy an extended warranty?

2007-02-12T11:50:00.000-05:00

Extended warranties are a waste of money for lazy owners. Timely vehicle maintenance is a demand of any reputable auto warranty company. So, if little Joe Jr. is heading off to college and you have the slightest suspicion that he might skip an oil change or spend the bucks you send for brake pads on beer, do not waste your money on an extended warranty. It is also important to keep records, so when a claim is filed the maintenance of the vehicle is never an issue.

How are claims paid?

2007-01-08T12:25:00.000-05:00

Some warranty companies ask you to pay and wait for reimbursement. Others pay promptly with a corporate credit card. No brainer... right?

Search until you find an extended warranty company that pays all parts and all labor... allows you to go to the repair facility of your choice and pays with a company credit card.

What do I need to know about my warranty?

2006-12-11T12:16:00.000-05:00

What about parts... labor and qualified repair facilities?

Many companies will only pay what is known as "reasonable" or "standard" rates for parts and labor. That means that if your mechanic charges $85 per hour and the contract's "reasonable" is listed at $55 per hour, you pay the difference.

Beware of companies that include a cap on parts or labor since those extra dollars will be coming right out of your pocket. Also, choose an extended warranty company that allows you to go to the repair facility of your choice, including the dealership if that’s what you prefer.

What different types of vehicle warranties are available?

2006-11-14T00:20:00.000-05:00

There are Powertrain warranties that only cover the engine, transmission and drivetrain. Since the average vehicle contains thousands of parts that are not covered, the Powertrain warranty is not a great value, even though it is often the least expensive.

There are also Breakdown warranties. These only cover breakage, no wear and tear items.

There are also warranties that list everything that is covered and others that list only what is not covered. Whichever you choose, you will want to ask about a wear and tear clause. That means that the warranty will pay for worn parts that need to be replaced. This is superior since not replacing a known worn part is not only dangerous, but will likely result in a more costly repair down the road. A comprehensive auto warranty that includes wear and tear coverage is generally the best choice.

Will my vehicle be inspected?

2006-10-09T12:14:00.000-04:00

Some warranty companies inspect every vehicle. Others rarely inspect. The best companies conduct random inspections on 10 -20% of the vehicles they cover at no charge to you. This is good because inspections are expensive and the money saved by conducting fewer is often passed on to you. However, in order to protect themselves from covering a disabled vehicle, your coverage may not take effect for 30 days and/or 1,000 miles or both.

If, for some reason, a wait period does not work for you, do not hesitate to ask what other options are available. Again, good companies will work with you. Look for a warranty company that conducts random inspections and never pay for an inspection unless you are asking the company to waive a waiting period. Even then, ask them to pay for it if your vehicle passes.

Extended warranty comparisons and decisions?

2006-09-11T12:15:00.000-04:00

What extended warranty comparisons and decisions should I be prepared to make? First, find out what kind of contract each company is willing to offer you. Generally, you will be comparing time, mileage, deductibles and price. Nevertheless, you need to compare other factors too.

For example, are you being offered "add-on" miles or "total" miles? Often, you will find the high mileage contracts are based on total miles. "Add-on" miles refer to mileage the contract will offer you in addition to your current mileage. Both are acceptable, as long as you are clear on what you are actually paying for.

Let's say that you do not plan to keep the vehicle very long. In that case, ask for a quote with fewer miles and/or less time and be sure to ask if the warranty is transferable since a warranty can be a good selling feature if you decide to sell the vehicle on your own.

What about an extended warranty for a used vehicle?

2006-08-14T12:15:00.000-04:00

No problem. Again, the best time to buy is when the mileage and age are at their lowest. However, there is an industry rule of thumb that you should consider prior to purchasing your used vehicle. Any reputable warranty company, that plans to stay in the business, wants your warranty to end before that vehicle has reached 10 years of age and/or about 100,000 miles.

Also, don't forget to discuss the maintenance with the prior owner and ask for the maintenance records. No records? Just be honest about your knowledge of the vehicle's history with the warranty company. The good ones will try to work with you.

Lastly, you cannot make comparisons by just visiting web sites. There are often understandable surcharges makes, models, four wheel drive, turbo engines, 1/2 ton trucks, etc. Therefore, you will need to speak with someone in order to get an official quote.

What are the risks of waiting to purchase my extended warranty?

2006-07-10T12:20:00.000-04:00

As the vehicle accrues mileage, the cost of an extended warranty increases.Labor rates are constantly rising. Many parts of the country have seen labor rates increase as much as 20% just in the past few years. Naturally, warranty coverage costs rise as well. As your vehicle ages, more repair data becomes available and many vehicles, especially high-line models, are placed into higher rate classes. However, once you buy coverage, your rate class is guaranteed not to change.

Here’s a final rule of thumb for you to consider. Any reputable warranty company who plans to stay in the business wants your warranty to end when your vehicle has reached 10 years of age and/or 100,000 miles. Not following this basic rule will lead them to bankruptcy. So beware of any company that promises more than common sense can deliver.

Can I finance an extended auto warranty?

2006-06-12T12:15:00.000-04:00

The short answer is yes. However, beware of the auto salesman who trys to lure you into buying an extended warranty by rolling the price into the sales price of the vehicle. That may sound like a good idea; but remember that you will be paying 6 to 10% interest for years on that extended warranty. That $1,800 extended warranty, tacked onto an 8% loan for 5 years, will actually cost you $2,644.79. And, that figure doesn’t even included the commission that you will be paying to the salesman, the finance guy and the dealership for acting as the broker!

What is the alternative? Simple. Shop direct and save. Don’t buy into the inflated pricing from a dealership. Take advantage of those internet-based warranty companies “Zero interest – Zero financing plans” with no hidden monthly fees. Some companies will promise you a zero interest-zero financing plan and then turn around and charge you a monthly “handling” fee, which can be up to $20 per month. So, look for the very best deal, which is an extended warranty company that is willing to accept a modest down-payment at 0% interest-financing with no monthly transaction fees.

What is the difference between a broker and a warranty administrator?

2006-05-08T12:30:00.000-04:00

...and Why is it important for me to understand the difference before I purchase my warranty?

A warranty administrator is the company responsible for actually paying your auto warranty claims. A broker, on the other hand, is a person who sells you an auto warranty and then “farms” the deal out to an outside administrator. There are lots of brokers, but relatively few actual full-service warranty companies who administer their own programs. Understanding the difference is important to you for several reasons:

1. It is impossible to research the claims handling history of a broker since they do not pay the claims.

2. Brokerage firms often need the services of an outside administrator because their own company does not have the financial assets to back up their claims. You want a company with a claim paying history and the assets to service your vehicle over the entire term of your contract.

3. Common sense tells you that you will receive much better customer service when your contact for claims is the same contact that sold you the coverage. Remember, the average consumer buys many cars during a lifetime and reputable companies depend of happy consumers purchasing repeatedly. They also depend of their customers to refer friends and other family members. Brokers are not worried about you after your contract is signed. You will be someone else’s problem.

So, be careful. The first questions you need to ask a warranty salesperson is “Are you a broker or does your company actually process and pay the claims?” We recommend dealing directly with the administrator, also known as a full-service warranty company, like Auto Service Warranty.

What are the risks of waiting to purchase my extended warranty?

2006-04-10T12:15:00.000-04:00

As the vehicle accrues mileage, the cost of an extended warranty increases. In addition, labor rates are constantly rising. Many parts of the country have seen labor rates increase as much as 20% just in the past few years. Naturally, warranty coverage costs rise as well. Lastly, as your vehicle ages, more repair data becomes available and many vehicles (especially high-line models) are placed into higher rate classes. However, once you buy coverage, your rate class is guaranteed for the life of your contract.

Here is a final rule of thumb for you to consider. Any reputable warranty company who plans to stay in the business wants your warranty to end when your vehicle has reached 10 years of age and/or 100,000 miles. Not following this basic rule will lead them to bankruptcy. So beware of any company that promises more than common sense can deliver.

Smart Extended Warranty Deductible Decisions

2006-03-13T12:45:00.000-05:00

Extended auto warranty plans frequently offer consumers a wide, and often confusing, range of deductible plans. Beware of companies that offer too many choices. The best plans are usually the simplest.

Remember, warranty costs are based on a few simple principles. The make, age and mileage of your vehicle are the most important. Therefore, watch out for companies offering you multiple deductible options. More than likely, these plans include complicated “frill” options that the salesperson knows you are unlikely to need or use. However, you will be paying for them.

Also, be sure to ask if the deductible applies to each "repair" or each "visit". A per repair deductible means that if your mechanic find three problems during one visit and your deductible is $200, you will be charged $600. That is simply a rip-off.

Choosing the right deductible for you should be a simple mathematic consideration. It is a lot like playing the odds. For example, if it costs $500 to go from a $100 to a $0 deductible, you only save money if the car is repaired less then 5 times. However, if a company is offering you a zero deductible for $200, that means that you will save money if the car is repaired more than twice. That is a much better deal.

When is the best time to purchase an extended warranty?

2006-02-14T00:45:00.000-05:00

The smartest consumers know that the very best time to purchase an extended warranty is while your vehicle is still covered by the manufacturer. It’s a lot like life insurance. You wouldn't wait until you're 85 to buy it and then expect a bargain, would you?

Here’s why: Naturally, the cost of a warranty rises as the vehicle ages and accrues mileage. You will be offered the longest terms and the lowest rates for newer vehicles with lower mileage. And, no, you will not be paying for double coverage, this car warranty coverage is simply an extension of that warranty, not double coverage. The manufacturer's warranty has been factored into the 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 lower rates.

How can I compare customer service of different warranty companies?

2006-01-09T12:30:00.000-05:00

Purchasing an extended warranty is a big ticket item for most people. You want a company that will respond quickly, treat you fairly and pay the claims. Every company out there claims that their customers are number one; but we all know that saying it doesn't necessarily make it so. Below are three tips that will help separate the best companies from the fly-by-nights.

1. The best way to evaluate a company’s commitment to service, is the most direct way. Ask the company for the names of dealerships that they have done business with, (not a local garage or independent) call several, and be very specific. Ask how quickly any claim was resolved by that company and how professional they were in resolving the situation. The service director knows the good and the lousy companies.

2. Another way to evaluate a company’s attitude and sense of fair play is to ask for a copy of the contract prior to signing. You will be surprised at how many companies are unwilling to let you see what you are really purchasing up front.

3. Lastly, beware of companies that try to pressure you to buy with threats of rising costs or huge discounts that are ending tomorrow. Reputable firms do not use these tactics. Reputable companies that intend to remain in the business use actuaries with mountains of statistics to produce their rates and those statistics do not change daily or weekly.

Using these three simple tips should go a long way in helping you to effectively evaluate the companies that you are considering doing business with.

Car Myths and Truths.

2005-12-21T11:27:00.000-05:00

Myth: Running the air conditioning can put a lot of stress on your car and can reduce the life of your car.

Truth: Waaayyy back when, that was decidedly true. Today, it doesn’t hurt a thing. Enjoy the cool air.

Myth: Using the parking brake is a bad idea, particularly if the car is hit while parked.

Truth: Using the parking brake is a good idea; it protects the transmission if the car is bumped while in park. Use of the the parking brake keeps the brake cables and related parts from seizing and on some vehicles use of the parking brake is necessary to adjust the rear disc brakes

Myth: Fuel additives should be used as a preventative, or to boost performance.

Truth: To boost performance, No. For preventive maintenance, absolutely. Make sure to follow recommended dosages, more is not better.

Remember without respect to maintenance any part of any vehicle can fail at any time without warning.