Frequently Asked Auto Warranty Questions

We've attempted to answer the most commonly asked questions below. With more than 20 years in the industry, we stand by our customer service and strive to uphold our operating principles - No Hassles. No Gimmicks.

Instructions: For answers to any of the following questions, click the linked words in the question.

General Overview

What is an extended warranty or vehicle service agreement?
I haven't had any problems. Do I really need an extended warranty?
What if my vehicle is still covered by the manufacturer's warranty?
How do I choose the right coverage plan?
Is there a money-back guarantee?
Are there any payment or financing plans for the purchase?

About The Policies
Are coverage plans available for both new and used vehicles?
Can I still buy a warranty if my manufacturer's warranty has expired?
How old can a vehicle be and still qualify for an extended warranty?
When does my extended warranty begin and expire?

What's included with the purchase of an extended warranty?
Is wear & tear coverage included?
Do plans cover all parts and labor?
Are seals and gaskets covered by your extended warranties?
Do after-market components get coverage?

Making A Claim
Where can I have repairs done?
Will a dealership honor my extended warranty?
What do I do if the repair shop won't honor the warranty?
How do I make a claim for covered repairs?
How are claims paid? Do I have to wait for reimbursement?
Is the deductible paid on each repair visit or each repaired component?

Is my extended warranty transferrable if I sell the vehicle?
What happens if I trade in the vehicle for a new one?

Reliability And Stability
Why should I use Discount Warranties services?
Why not buy from the dealership?
Why are your prices less than a dealership or other online company?
How can I be certain this extended warranty is reliable?

What is an extended warranty or vehicle service agreement?
Commonly referred to as a "warranty", vehicle service agreements pay you in the event of a mechanical failure or wear beyond the manufacturer's tolerances for all labor, parts and other associated costs required to repair or replace the damaged vehicle components designated in the agreement.
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I haven't had any problems. Do I really need an extended warranty?
Yes, if you want to avoid being surprised by high repair costs. Mechanical failure happens frequently and is always unexpected. The probability for mechanical failure increases with the vehicle's age and mileage. This probability is why vehicle manufacturers only provide a warranty for a specific number of years or miles. With an extended warranty, you choose protection to match your future plans to trade or sell the vehicle.
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What if my vehicle is still covered by the manufacturer's warranty?
As vehicles age and mileage increases, so does the cost of an extended warranty. So the earlier you purchase a protection plan, the less it will cost. Also note that the extended warranty coverage applies for a period of years beginning on the date the agreement was purchased. Be aware that some dealer programs and other warranty companies begin their coverage on the vehicle's in-service date; not the date of the vehicle service agreement.
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How do I choose the right coverage plan?
It's always better and less expensive to buy a warranty when you have fewer miles on your vehicle. The more miles you have on the vehicle, the more you should expect to pay. However, you need to consider your driving habits. Examine how many miles you drive each year and how long you plan to keep the vehicle. Your answers will help you determine the best term and mileage option. Then our quote system will show you the cheapest plan for each option.
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Is there a money-back guarantee?
All plans offer a FULL money-back guarantee for 30 days, as long as there are no claims.
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Are there any payment or financing plans for the purchase?
All of our warranty providers offer financing options.
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Are coverage plans available for both new and used vehicles?
Yes, coverage plans are available for both new and used vehicles. Your vehicle's model year and mileage determines how the vehicle is classified. Vehicles beyond a set age and mileage may still qualify for a new vehicle warranty with an extended eligibility surcharge; otherwise, it will qualify for a used vehicle warranty. But don't get confused, our system will analyze your vehicle's information automatically and compare rate plans from multiple warranty companies to select the least expensive options for the most coverage.
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Can I still buy a warranty if my manufacturer's warranty has expired?
You may purchase an extended warranty after your manufacturer's warranty has expired, but the longer you wait, the more expensive the policy. Nonetheless, extended warranties are availabile for vehicles up to 15 years old with 125,000 miles.
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How old can a vehicle be and still qualify for an extended warranty?
Generally speaking extended warranties will expire at the 10th anniversary of the vehicle or at approx. 100,000 miles. However we do have companies who can provide limited coverage on vehicles 15 years old and have been driven up to 125,000 miles.
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When does my extended warranty begin and expire?
Extended warranty coverage should begin the day that you purchase the warranty; not the vehicle in-service date. Thus you receive the full benefit of the term option that you select.

For a "new" vehicle program, your extended warranty will expire at the end of the term or when the odometer reaches the total mileage selected. For example, a 5 year/100,000 mile plan would expire 5 years from the date you purchased the warranty or when the odometer reaches 100,000 miles.

For a "used" vehicle warranty, the mileage of the plan selected is in addition to the current odometer mileage. For example, a 48 month/48,000 mile plan would expire 48 months from the date the warranty was purchased or when the vehicle has been driven an additional 48,000 miles.
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What's included with the purchase of an extended warranty?
Every extended warranty includes free roadside assistance during the full coverage term. If you have a break down anywhere in the United States or Canada, one phone call will summon assistance for fuel, flat tires, dead battery and more. All companies will also provide car rental while your vehicle is in the repair facility.
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Is wear & tear coverage included?
Wear & tear refers to a covered component that is worn beyond the manufacturer's tolerances and should be included with all good policies.
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Do plans cover all parts and labor?
The warranty provider pays full retail rates for all labor and parts required.
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Are seals and gaskets covered by your extended warranties?
Seals and Gaskets coverage is included on all plans.
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Do after-market components get coverage?
No. After-market items are not covered by any warranty company. Only factory-installed components are eligible for coverage.
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Where can I have repairs done?
You can have your vehicle repaired by any licensed repair facility that makes you comfortable. You may take it in for repairs at your original dealer, your favorite repair shop, or any national chain that performs vehicle repairs. And all claims are paid direct to the repair shop with a corporate credit card so you don't have to file a claim and wait for reimbursement.
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Will a dealership honor my extended warranty?
Absolutely! They are paid full retail price on all labor and parts for a covered repair, so a dealership will welcome the additional business. And all claims are paid direct using a corporate credit card so you don't have to wait for reimbursement when you file a claim.
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What do I do if the repair shop won't honor the warranty?
First, there's no reason a reputable repair facility shouldn't accept your warranty coverage. Full retail price is paid on all labor and parts for a covered repair. But if you are told that the warranty will not be honored, call the toll-free number found in your agreement and let the administrator talk to the repair facility. If the repair facility still won't accept the warranty plan, then go somewhere else as they may be attempting to pull something over on you.
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How do I make a claim for covered repairs?
Simply take your vehicle to the repair facility of your choice, or have it towed with the free roadside assistance benefit included with your warranty. Show your extended service agreement to the Service Department, and they will call the administrator at the toll-free number listed in the agreement to authorize the repair. Your only out of pocket expense is the deductible. All repair facilities are paid directly over the phone using a corporate credit card.
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How are claims paid? Do I have to wait for reimbursement?
All covered claims are paid direct to the repair facility using a corporate credit card. Thus you do not have to pay for the repairs, file a claim and wait endlessly for reimbursement. In fact, most repair facilities will not accept extended service agreements unless the company pays direct.
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Is the deductible paid on each repair visit or each repaired component?
Your deductible is the only out of pocket expense you incur for a covered repair. But more importantly, you only pay one deductible per repair visit. Be careful when researching other warranty wholesalers because some charge a deductible per repaired component.
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Is my extended warranty transferrable if I sell the vehicle?
You bet! All extended warranties that we sell can be transferred in the event you sell your vehicle to another individual. In fact, your used vehicle may be worth more because you can transfer your extended warranty into the new owner's name. Also see the answer to the question below regarding trading a vehicle.
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What happens if I trade in the vehicle for a new one?
If you trade your vehicle with a dealer, your extended warranty cannot be transferred to the dealer. Instead, you receive a pro-rated refund of the warranty's purchase price based upon the term and mileage remaining on the agreement. Some conditions may apply depending upon the company.
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Why should I use Discount Warranties services?
We've been in business since 1984, and our longevity speaks for the quality of the products and customer service we provide. Furthermore, we're the only wholesale provider of extended vehicle warranties that offers you more than one company's coverage plan. Our relationships with multiple industry-leading companies allows us to compare the plans of many companies and select the plans with the best pricing and most comprehensive coverage according your vehicle information. Thus, we do the shopping for you! We make sure the companies have flexible payment options with Easy Pay and Interest-Free Financing programs.
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Why not buy from the dealership?
The main reasons you shouldn't buy a warranty from a dealership are price and flexibility. Dealerships use the sale of warranties to increase their profits and will often finance the warranty's price with your vehicle. So not only are dealership prices 3 or 4 times higher, but you also end up paying interest that makes your warranty even more expensive. Additionally, a dealership's warranty is typically restricted to being valid only at the location where the warranty was purchased. A warranty from Discount Warranties does not have these restrictions, and because we don't use dealerships as "middlemen", you get better coverage at a much, much lower price.
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Why are your prices less than a dealership or other online company?
Discount Warranties is a wholesale service provider of extended vehicle warranties versus a dealership being a retailer. Thus, our direct relationship with you, the consumer, means we eliminate the dealership as a "middleman". Plus, a dealership's price reflects the profit needed to cover it's high overhead expenses and massive inventory costs. The efficiencies of Internet marketing and delivery further reduce the cost of doing business, and again, we compare coverage plans from multiple companies to get you the best coverage at the lowest price available. Combining these advantages results in substantial savings that we pass along to you.
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How can I be certain this extended warranty is reliable?
Our wholesale pricing approach was the reason for naming the company Discount Warranties, but we will not sacrifice quality for a cheaper warranty. We only offer plans to make sure you receive comprehensive protection against high repair costs. Every warranty is valid at any reputable repair facility in the United States, including dealerships. We rely on a customer's satisfaction to be our biggest marketing voice, and thus, take reliability very seriously.
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You won't find a better auto warranty priced for less anywhere!
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