Where To Buy Bmw Extended Warranty?

Is a BMW Extended Warranty Worth Buying? (2022) A BMW extended warranty keeps the money in your pocket instead of paying for costly repair bills. Disclosure: This content was produced by an independent editorial party for the purposes of educating our customers, and is not influenced by the other business operations of CARCHEX.

1. Now that you are the proud owner of a BMW, you want to keep your car working as it should.
2. Lasting up to seven years or 100,000 miles, a BMW extended warranty is a vehicle service contract that keeps the money in your pocket instead of paying for costly repair bills.
3. Look to the car warranty and insurance experts at CARCHEX for advice on where to find the right BMW warranty for you.

BMW extended warranties are a great way to help offset expensive repairs. They begin when your manufacturer or factory warranty expires. You can buy an extended warranty for new, used, or pre-owned BMWs from the dealership or from third-party car warranty companies like CARCHEX.
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Can I purchase BMW extended warranty?

BMW ULTIMATE PROTECTION PROGRAM Coverage for your BMW should go above and beyond. ESC expands the coverage of your vehicle for up to 7 years, or 100,000 miles, and offers three levels of coverage so you can pick the exact one you need. In addition, BMW guarantees unmatched quality of care with all repairs completed with 100% Original BMW parts and at an authorized repair facility. : BMW ULTIMATE PROTECTION PROGRAM
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Can you buy extended warranty after purchase?

Third-Party Extended Auto Warranties – You can purchase an extended auto warranty at any time, although waiting until the original factory coverage has expired will generally mean paying a higher premium rate. The most advantageous time for purchase may be near the end of the original warranty term.

At that point, you can do some shopping around to find out what types of coverage and rates are available for your year and model vehicle. This will give you a basis for comparison from one policy to another. It’s important, though, that you carefully choose where to purchase an extended warranty policy.

While the selection of providers is very large, many will most likely not fit your requirements for a quality warranty provider, These contracts are typically filled with fine print that will ensure that your policy isn’t worth the price of the paper it’s printed on.

1. Avoid these companies at all costs and opt for a reputable and trustworthy one! Each third-party provider will have its own list of items covered for repair under their warranty.
2. There are numerous different levels of coverage that you can purchase, so make sure that the level of coverage you choose will fit the needs of your vehicle and your budget.

Buying too little coverage can lead to components and parts not being covered, which will result in a costly repair bill. You want to feel secure that in the event that anything would happen, you’re fully covered, On the other hand, buying too much coverage can be a not-so-great plan as well.

Be sure to check what is included in the policy. If you see that the majority of parts or components listed do not even apply to your vehicle, ask your Vehicle Protection Specialist if there are any other coverage plans that better fit your needs. Just as important, check out the list of exclusions, which are items not covered,

Fully comprehensive coverage, commonly referred to as a “bumper-to-bumper auto warranty,” is best, but we want to make sure you’re aware that it is also the highest priced. But most drivers know from their auto insurance statements that the more coverage you place on your vehicle, the more expensive it will be.

Even the most comprehensive coverage, however, is worthless if you’re buying from an untrustworthy company, If the warranty is being underwritten by a company that may be gone next month or next year, your policy will not be valid, and you’ll be out quite a bit of money. Check out the financial history and claims-paying reputation of any company you’re considering.

And while you’re at it, ask their rating with the Better Business Bureau and whether the company is certified by the Vehicle Protection Association. These are two very important factors to consider when choosing a protection plan from one of the best extended car warranty companies.
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How much does BMW Platinum extended warranty cost?

Cost of the BMW Extended Warranty – If you’re considering BMW extended warranty coverage, the main question you may be asking is whether it’s worth the cost. From what we found in our research, BMW Extended Service Contracts are on the expensive side.

Expect to pay between $1,000 and $8,000 for a BMW extended warranty. We found a BMW M4 owner that was quoted $6,500 for a five-year/100,000-mile Platinum Plan. Others were given similar prices. To find a comparison, we used Cadillac’s Platinum Protection Plan’s pricing tool. A five-year/60,000-mile contract for a 2016 Cadillac ATS no longer under warranty would be $3,750.60.

As you would expect, the price increased for older models with more mileage. A BMW warranty covers almost all parts of a new vehicle, but that protection goes away once the warranty expires.
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Is BMW extended maintenance plan worth it?

Is the BMW maintenance plan worth it? – The BMW maintenance plan usually costs more than maintenance from independent repair shops. If you drive an average amount of miles (15,000 miles per year or less), then it might not be worth it. However, if you put a lot of miles on your car, the maintenance plan can provide more value.
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Is it better to buy extended warranty from dealer?

Dealership Warranty: Should You Buy One? (2022) Dealer warranties are usually automaker-backed “add-ons” that can increase prices by $2000 and include services at approved dealerships for a set period. Extended warranties offered by car dealerships provide a considerable amount of coverage and often offer perks similar to those of a third-party provider.

However, if you aren’t careful, you may overlook markups on your car loan, add-ons you don’t need, or coverage that doesn’t last the amount of time you need. You may have also noticed that extended warranties from a dealership can be more expensive than ones from third-party companies. It may have left you wondering how much money dealerships make on warranties and whether a dealership,

If you’re debating whether to buy an extended warranty plan from a dealership or a third-party company, we recommend comparing several quotes to decide what will work best for your vehicle. Click below to get started with quotes from a few of our recommended,

When you’re offered an extended warranty when purchasing your vehicle at the dealership, it can be difficult to know on the spot what type and length of coverage you need, as well as what cost to expect.Our team has put together a few of the pros and cons of buying an extended warranty from a dealership to help you make an informed decision.Consider the pros of dealership warranties to determine it it’s the best option for you:

Reliable coverage: Buying a manufacturer-backed extended warranty from a dealership can give you more comprehensive coverage than one backed by a third party. You’ll have access to higher-quality service from licensed dealerships and factory-trained technicians who use factory parts for your car. Benefits: Dealership warranties offer an array of benefits like roadside assistance and rental car reimbursement. Manufacturer’s warranties also remove the hassle of paying for services up front and having to be reimbursed later. Convenient for car buyers: Buying an extended warranty at the same time you purchase your used or new vehicle eliminates the need to search for one later. Any deals you’re offered during your car purchase may make warranty pricing seem more reasonable as well, and you may even be offered a reduced down payment.

Take the time to look over some of the disadvantages of buying a dealership warranty as well:

Unnecessary interest rate: When you accept an extended warranty offer from a dealer, your warranty payments may be combined with your regular monthly auto payment. This results in paying interest on your warranty along with your car, making your purchase more expensive. Fees and unwanted add-ons: A dealership warranty can come with additional fees and unnecessary add-ons. While you may be able to negotiate with the salesperson, these fees and add-ons are usually set in place, and the overall plan isn’t as customizable as a third-party warranty plan. Poor return: Dealership extended warranties take effect almost immediately, which means that you may be paying for a warranty well before you need to use it. Depending on the length of the warranty, there’s a chance it could expire before you’ll need any repairs.

Dealerships make most of their big profits from aftermarket sales, which includes selling gap insurance, car products and accessories, and extended car warranties. Each warranty plan a dealership sells can add up to $2,000 per purchase to its bottom line.

• The average dealer generally makes up to half of the selling price of an extended warranty.
• For example, if you purchase an extended warranty for $2,000, the dealer may make a profit of up to $1,000.
• Plus, when you purchase a dealership extended warranty, dealers make money for the duration of your vehicle service contract because you’ll likely bring your car to their service department whenever you need repairs or factory parts replaced.

Because dealerships make a significant portion of their profits from aftermarket sales rather than new car sales, they want to be your primary source for an extended car warranty. Dealers want to make the car buying experience as easy and efficient as possible, so they will try to sell you a warranty based on convenience and accessibility.

However, dealerships often mark up the prices of the extended warranties they offer since these sales are highly profitable for them. Because the cost of a dealership warranty is likely more expensive than a third-party warranty, it is worth evaluating your options and trying to negotiate a lower price for the dealership warranty, if that is the plan you choose.

It can be challenging to determine whether the additional benefits and reliable coverage of a dealership warranty are worth the higher costs. Dealership warranties offer unique advantages in terms of convenience and the high-quality service they provide through factory-trained technicians who use manufacturer-recommended parts.

1. However, you also run the risk of not using the extended warranty to its full benefit.
2. Many drivers find the peace of mind that comes with knowing their vehicles are covered in the case of a mechanical breakdown worth the higher price of a dealership warranty.
3. To help make your decision, consider the type of coverage you would want, the average cost of repairs for the car you’re buying, and potential add-ons and fees you want to avoid.

Research the average, types of coverage, and perks offered by third-party providers as well so you are prepared to compare those packages to the dealership offer. To help you compare dealership warranties to third-party vehicle service contracts, our team has reviewed the companies and rated them based on average cost, coverage, customer service, available perks, and more.

Company	Motor1 Rating	Coverage Levels	Longest Term Available
Endurance	4.6	6	8 years
Olive	4.2	3	3 years
CarShield	4.2	6	Offers month-to-month payment plans

As one of the largest third-party extended warranty companies on the market, Endurance provides multiple coverage options for car owners and holds a gold-level certification from the Vehicle Protection Association. Our team gave Endurance a 4.6 overall rating for its commitment to excellent customer service, positive reviews, reasonable costs, and quality coverage options.

1. All Endurance protection plans come with additional benefits such as 24/7 roadside assistance, rental car reimbursement, and free Endurance Elite Benefits for a year.
2. As a member, you’ll receive up to $1000 toward a replacement vehicle in total loss protection.
3. You also have the option to add additional services to your chosen warranty plan.

To find out more about this provider, check out our and get a free quote below. This relatively new, digital-focused extended warranty company offers three coverage options that last for three years, or until your car reaches 185,000 miles. Olive is subscription-based, meaning you can cancel your warranty plan at any time.

1. The company has an A+ rating from the Better Business Bureau (BBB) and a 4.7-star rating on Google.
2. Olive offers warranty coverage ranging from its basic Powertrain plan to its exclusionary Complete Care plan.
3. Each plan also comes with three deductible options – $100, $250, and $500 – which gives customers the chance to choose between nine different affordable price points for coverage.

To find out more about this provider, you can take a look at our complete and get a quick personalized quote below. CarShield offers six types of extended warranties for both new and used cars, with some plans providing coverage up to 300,000 miles. The company has affordable monthly payments that start around $100, making it a popular choice among buyers looking for a budget-friendly warranty plan.

A few advantages of an extended warranty with CarShield are the ability to choose the certified repair shop of your choice, 24/7 emergency roadside assistance, and transferable vehicle service contracts if you sell your car. Our team gave the company a 4.2-star rating, and we think CarShield’s comprehensive coverage and low rates are worth considering.

Read our to learn more and click below to receive a free quote.
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How much does a BMW warranty cost?

A BMW extended warranty costs around $3,000 for three years of coverage, but prices vary depending on coverage options and the condition of the used BMW. For a three year platinum plan, a BMW can cost as much as $7,000. Year can find cheaper prices for comparable coverage with third party providers.
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What is a downside to purchasing an extended warranty?

Con: They Are More Expensive When Purchased Later In addition, with a few miles on the odometer, you will command a top deal. For new cars, the service contract will not kick in for several years, usually near the time the original warranty expires.
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What is a fair price for an extended warranty?

What Does the Average Extended Car Warranty Cost? – Like car insurance, extended car warranty costs are personalized and vary from driver to driver. Based on the quotes our review team has collected, an extended car warranty can cost anywhere from $1,300 to $4,600, with the average cost being around $2,600.
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Do dealerships mark up extended warranty?

How much do extended car warranties cost? – When you buy a car from a dealer, they’ll likely ask if you want to purchase an extended warranty to go with it. But much like the financing they offer, dealerships tend to mark up the cost of extended warranties to make a profit.

1. If you’re serious about purchasing one, consider negotiating with the dealer to get the price down or check out some independent providers.
2. Coverage options vary widely, and the cost you’ll pay varies based on what the plan covers and the make and model of your car.
3. The upfront cost of the warranty can range from $1,000 to $3,000 or more.

Plus, if you roll the cost of the warranty into your auto loan, you’ll pay interest — and potentially fees — on it. You may also be required to pay a deductible, Deductibles are usually charged in one of two ways — per repair or per warranty service visit.
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Can I purchase a BMW warranty?

Whether you purchased your vehicle new or certified pre-owned, you can add BMW Extended Warranty coverage and enjoy up to seven years or 100,000 miles of coverage in total!
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Can I extend my BMW extended warranty?

BMW extended warranty overview – BMW offers three levels of BMW extended warranty coverage, all of which must be purchased before your original factory warranty expires. Here’s an overview of the vehicle service contracts available to BMW owners: All extended auto warranty options may be extended up to 7 years/100,000 miles from the original in-service date.

1. This time frame includes the new vehicle limited warranty, so you’ll actually only be getting an additional 3 years/50,000 miles of coverage after your factory warranty expires.
2. Each of the three levels of coverage for BMW extended vehicle protection comes with a $50 deductible that must be paid at the time of the covered repair.

All repairs are made using genuine BMW parts at authorized BMW repair facilities. Drivers can transfer their BMW extended warranty protection if they sell their vehicles, but certified pre-owned vehicle (CPO) owners will have to pay a $200 transfer fee.
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What is the 20 year 200 000 mile warranty?

MY KIA 20 YEAR/200,000 WARRANTY Frequently Asked Questions – MY Kia is happy to offer an exclusive 20 Year / 200,000 Mile Limited Powertrain Warranty on all new vehicles purchased from MY Kia in the Salinas Auto Mall! Q: What does the MY Kia 20 Year / 200,000 Mile Warranty cover? A: The 20 Year / 200,000 Mile Warranty covers parts and labor on all approved engine, transmission and driveline failures including applicable seals and gaskets.

1. See question below for a list of all the covered components and disclosures.
2. Q: What do I have to do to keep the 20 Year / 200,000 Mile Warranty in effect? A: Simply maintain the vehicle at MY Kia or any ASE certified service repair shop, in accordance with the Manufacturer’s Recommended Maintenance Schedule.

Note that the recommended maintenance must be performed according to the maintenance schedule booklet. If not serviced at MY Kia, records of service repair will be required. Q: Where can I find the Manufacturer’s Recommended Maintenance Schedule for my vehicle? A: See your Maintenance Guide given at the time of delivery or call and speak to a MY Kia Service Advisor.

Q: Do I have to have my maintenance work done at MY Kia? A: It is not necessary to have your maintenance work performed at our MY Kia dealership, but the maintenance must be documented. Q: Do I have to have my warranty work done at MY Kia? A: Any warranty work completed once the 20 Year / 200,000 Mile Warranty goes into effect (i.e.

after the manufacturer’s warranty is expired), will need to be completed at MY Kia in the Salinas Auto Mall. Q: What does this warranty cost me? A: NOTHING! The 20 Year / 200,000 Mile Warranty is included with the purchase of new vehicles from MY Kia.

Q: Can I change my own oil? A: You may change your own oil, but you must keep date stamped supporting documentation, i.e.: receipts for oil, filters, etc. and will have to keep an oil change log each time an oil change is completed showing that it has been done within the recommended mileage intervals.

The date of receipts must be in line with the recommended mileage intervals of your vehicle. Q: Am I responsible for paying a deductible when making a claim? A: There is no deductible for the Original Factory portion of the Powertrain Warranty. However, when the factory warranty expires, there will be $100 deductible on all covered items.

1. Q: Does my 20 Year / 200,000 Mile Limited Powertrain Warranty contract provide towing? A: When towing is necessary, your vehicle will be towed to the issuing dealer or the closest affiliated dealer.
2. Towing assistance will be covered up to $75, per occurrence, when your vehicle is towed to the issuing dealer or affiliate.

Q: Is the 20 Year / 200,000 Mile Limited Powertrain Warranty transferrable? A: No. The 20 Year / 200,000 Mile Limited Powertrain Warranty expires upon transfer to any subsequent owners. It is only good for “Original Owners” (as defined below). Q: Where is MY Kia Located? A: MY Kia’s service center is located at 222 Auto Center Circle, Salinas, California 93907 at the Salinas Auto Mall, All warranty work can only be performed at this location.
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Is oil change for BMW more expensive?

How much is the cost to get a BMW oil change? How much does it cost to get a BMW oil change? My friend and I were having a debate about whether oil changes cost more or less for nice cars. I think they cost more, but they don’t agree. You’re right! It will usually cost between $135 and $175 to get a BMW oil change compared to an oil change for a more affordable car will cost between $35 and $75.

BMWs use special synthetic oil, which performs better at low temperatures. It also cleans the engine while it heats and lubricates moving parts. More standard oil changes use normal oil. BMWs have specific oil filters, designed for use with their synthetic oil. Though the difference in cost isn’t too significant, BMW oil filters are more expensive than the standard ones. BMW only certifies specific service teams, meaning some shops may not be equipped to deal with a BMW. Of course, you can still get an oil change at an uncertified shop. They just might not be specifically trained in handling BMWs.

That said, oil changes are more expensive for nicer cars. In fact, just about everything is more expensive for a nice car ! Insuring a can cost four times as much as it costs to insure a, But no matter the cost, there are still great ways to save—like using ! A licensed broker, the Jerry app can help you find and compare quotes from top name-brand providers.
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Why is BMW maintenance so expensive?

Why BMW Maintenance is Expensive – Maintaining a BMW is expensive because it’s a German car with specialty parts and technology. BMW is engineered for driving enthusiasts – it’s not just a car to get people from point A to point B. BMW has sophisticated technology that requires specialized certification to properly repair.
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Why is BMW insurance so high?

Our survey found that the average cost to insure a BMW model is $4,049 per year for a 30-year-old male. In order to determine the average cost of insurance for BMW models, we collected insurance rates over the last five years for eight of their popular models.
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What are 2 of the things should you consider before getting an extended warranty?

The Complete Guide To Buying an Extended Warranty (2022) If your manufacturer’s is about to expire, it can be a good idea to look for extended warranty coverage. An, also known as a vehicle service contract, covers unexpected repair costs due to mechanical breakdowns or failures.

If you’re a first-time buyer, you may be wondering what you should look for in a good car protection plan. Our team has polled consumers to find out what matters most to them when selecting extended warranty coverage. We have also reviewed the on the market so you can make a well-informed decision. Our team recently conducted a survey to learn what matters most to drivers when choosing an extended warranty.

We polled 1,000 consumers who had purchased or considered purchasing a vehicle protection plan and found that cost was the top consideration. Here’s a closer look at the top six most important factors according to vehicle owners:

#1 Cost: The most significant factor that impacts consumers’ decisions to buy an extended car warranty is cost. The cost of an extended warranty depends on several factors, such as vehicle type, provider, length of coverage, level of coverage, and more. #2 Term length: The length of a warranty is a major consideration for many consumers. Extended warranty companies that offer flexible term lengths or month-to-month subscription plans are sought out most among car owners. #3 Covered components: The number of plans a company offers can be telling, but more than that consumers look for the parts and components that are covered under the warranty. Access to comprehensive coverage at an affordable price matters to many drivers. #4 Company reputation: When buying an extended warranty, consumers feel more comfortable purchasing from companies with high industry ratings. It can be smart to look for providers that have positive scores from organizations like the Better Business Bureau (BBB) and a low complaint index based on size. #5 Customer service: Consumers want to experience stress-free coverage and great customer service. Many car owners will opt for companies that hold high customer service ratings from Google Reviews, the BBB, Trustpilot, and more. #6 Ease of claims process: No one wants to deal with being reimbursed for car repairs months after they’re completed or battling with a warranty company over what’s covered. Especially if you’re a first-time buyer, we recommend choosing a company that pays repair costs directly to the shop or mechanic.

Our team of experts polled 1,000 consumers who have purchased or considered purchasing an extended car warranty to learn what matters to consumers. When asked which factors are most important when purchasing an extended warranty, 645 out of 1,000 drivers responded that cost is the most significant consideration.

The data in the chart below shows the percentage of respondents from our consumer report who believe cost, term length, covered components, company reputation, customer service, and an easy claims process matter when buying a, Based on our research, the cost of an extended warranty can range between $1,500 and $4,500.45% of consumers polled paid between $1,500 and $2,500 for their extended car warranties, though the amount you pay will vary depending on many factors.

Extended warranty pricing can be affected by:

Vehicle make, model, year, and mileage Type of warranty (powertrain, mid-level, bumper-to-bumper) Deductible Term length (many begin at 3 years/36,000 miles)

The extended warranty plan that’s best for you will depend on your specific needs. However, it’s always smart to consider cost and available coverage options in our decision. Our team has reviewed every major extended auto warranty provider in the industry. We rated each provider in the following categories:

Industry standing: Look for a reputable warranty provider with a history in the industry and strong ratings from automotive experts. Cost: You want to ensure that your extended warranty plan offers a good value for the coverage you receive. Coverage: Many providers offer a range of comprehensive coverage plans. Read through the details of each plan to ensure you get the coverage that’s best for your needs. Transparency: Search for a company that offers a money-back guarantee for greater peace of mind. Customer service: Take a close look at a provider’s reviews to learn about the customer experience and ensure it will handle claims efficiently.

Our team of experts considers these five factors to be the most important when ranking extended car warranty companies – and this is comparable to what consumers look for when making a decision about buying an, Reputable extended warranty companies make it easy to get a quote online or by phone.

Make sure you have details about your vehicle’s year, make, model, and mileage ready before reaching out for a quote. Once you have your quote, consider not only the monthly payment but also the total cost and deductible. A higher deductible can mean a lower overall payment and vice versa. But remember, you will need to pay your deductible for any covered repairs.

We recommend comparing free quotes from multiple providers to find the best price and coverage plan. With hundreds of extended warranty companies that offer a variety of coverage options and costs, it can be challenging to figure out the best choice for your vehicle.

In our consumer survey about buying extended car warranties, the top three companies consumers had purchased plans from were CarShield, Endurance, and CARCHEX. CarShield is the most popular provider in the industry. It offers six coverage plans for cars and specialty vehicles like motorcycles, as well as some of the lowest rates on the market.

Endurance and CARCHEX are two more top providers offering six and five levels of coverage respectively. Endurance is known for its extensive benefits, including roadside assistance, tire repairs, and lockout assistance, while CARCHEX can be a smart choice for high-mileage vehicles with coverage up to 250,000 miles.

Warranty Company	Motor1 Overall Rating	Cost Rating	Coverage Rating
#1 Endurance	$5	$5	4.9
#2 CARCHEX	4	4.3	4.6
#3 Protect My Car	4.3	4.1	4.1
#4 CarShield	4.2	4.5	4.6
#5 autopom!	$4	4.1	4.1

One of the best extended warranty companies of 2021, Endurance is a direct provider of vehicle service contracts and has multiple coverage options. It offers six coverage levels ranging from affordable powertrain coverage to an exclusionary, bumper-to-bumper warranty.

It also offers a comprehensive plan that covers mechanical breakdowns as well as routine maintenance services such as oil changes. A few additional benefits included with every Endurance plan are 24/7 roadside assistance, rental car reimbursement, and a free Endurance Benefits membership for one year.

In our review of the company, we gave Endurance the highest rating of any provider with 4.6 out of 5.0 stars.

Endurance Pros	Endurance Cons
Direct-to-consumer service	Endurance Benefits is only free for the first year
Many choices for coverage, including a maintenance plan and extensive benefits	C+ rating from the BBB
Positive customer service ratings

Read our full for information about coverage. CARCHEX is a leading provider of vehicle service protection for new and pre-owned cars. It offers five coverage tiers ranging from powertrain to exclusionary that are available for vehicles up to 250,000 miles.

CARCHEX Pros	CARCHEX Cons
Strong industry reputation	Average customer service
Comprehensive coverage plans with high mileage limits	No maintenance coverage
Affordable rates compared to competitors

Read our complete to learn more. Protect My Car has three levels of warranty protection, as well as the Ambassador Maintenance program that covers routine maintenance services such as oil changes and tire rotations. If your car doesn’t qualify for extended warranty coverage, the Ambassador plans can be a smart choice to help with maintenance expenses.

Protect My Car Pros	Protect My Car Cons
Maintenance plans available for older vehicles	No basic powertrain or exclusionary warranty plan
Strong customer service reputation	Doesn’t provide coverage for cars over 13 years old
Low monthly payments available with long payment terms

If you’re considering an extended warranty plan from this provider, check out our for more information. Since 2005, CarShield has protected millions of vehicles under six coverage plans. Depending on the plan you choose, an extended warranty with CarShield can include benefits such as roadside assistance, trip interruption coverage, and rental car reimbursement.

The company also offers a specialty plan for motorcycles, ATVs, and RVs. We rated CarShield 4.2 stars for having some of the most affordable rates compared to competitors. CarShield’s extended warranty coverage plans begin at $99 per month. The provider can be a good choice for car owners who prioritize pricing when buying an extended warranty, as well as those with older vehicles.

It has a mileage limit of 300,000.

CarShield Pros	CarShield Cons
Most popular provider on the market	F rating from the BBB
Coverage for specialty vehicles	Average customer service
Industry-low rates	No maintenance coverage

To learn more about the pros and cons of a CarShield warranty, check out our full, Founded in 2009, autopom! has been providing quality extended warranty coverage in all 50 states for the past 12 years. The aftermarket warranty provider holds an A+ rating from the BBB and is highly rated by customers with a rating of 4.6 out of 5.0 stars.

autopom! Pros	autopom! Cons
Easy quote process	Doesn’t cover some luxury vehicles
Varying levels of coverage	No maintenance coverage
Highly regarded customer reviews	Expensive down payment

To learn more about coverage from the provider, read our complete, In our review team’s survey, we asked consumers about their level of trust in extended warranties from both third-party providers and car dealerships. We found that 63 percent of respondents trust an extended warranty from a third-party car warranty company, with 4.4 percent having complete trust.

On the other hand, 15 percent of respondents do not trust purchasing an extended warranty from a third-party car warranty provider, with 2.7 percent who say they don’t trust it at all. When it comes to purchasing an extended warranty from a car dealership, 65 percent of consumers we polled trust this process, and 7.6 percent specified that they completely trust in a dealership extended warranty.

However, 16 percent of respondents don’t trust purchasing an extended warranty from a car dealership, with only 0.6 percent who don’t trust it at all. From this data, we can generalize that slightly more consumers have absolute trust in purchasing an extended warranty from a car dealership than from a third-party car warranty company.
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Do dealers make money on extended warranties?

Table of contents –

• Types of Repair Agreements
• Consumer Alert
• Vehicle Service Contracts issued by ” Vehicle Service Contract Providers”
• VSCs issued by Dealers (Dealer-Obligor VSCs)
• Mechanical Breakdown Insurance
• Important Terms
• The Obligor
• The Price
• The Duration
• What is covered
• What is not covered
• Wear and tear
• Routine Maintenance
• What you need to Do if there is a Claim
• The Backup Insurance Company
• What About New Car Warranties
• Where to Buy, How to Buy and How Much to Pay
• What Should I Do if my Claim is Denied
• Why Isn’t My Car Ready
• Used Car Vehicle Service Contracts
• Can I Cancel a Vehicle Service Contract
• Some Final Reminders about Automobile Repair Agreements
• Resources
• Highlights in Spanish
• Talk to the Department of Insurance

Many people buy a Vehicle Service Contract (VSC) or similar agreement to cover the cost of future repairs. This guide provides information on buying and using a VSC or other type of “repair agreement.” When you buy a VSC or other repair agreement, a company becomes legally obligated to pay for covered repairs to your vehicle.

• The vehicle could be a car, Motorcycle, ATV or boat.) The company that has this obligation is called the “obligor.” There are different kinds of obligors, and some obligors are better in certain ways than others.
• If you are thinking of buying, or have already bought a repair agreement, it is essential to know whom the obligor is, what laws the obligor must follow, and what your rights are.

The laws and your rights depend on the type of obligor. Repair agreements are referred to by different names: auto service contract, vehicle service contract, extended service contract, extended warranty, vehicle service agreement, mechanical breakdown insurance, and others.

• VSCs in which the obligor is a special type of company called a “vehicle service contract provider.” (For the rest of this Guide, we will refer to vehicle service contract providers as VSCPs,)
• VSCs in which the obligor is a dealer who sells a car, motorcycle, ATV or boat. We call these “dealer-obligor contracts.” When we refer in this Guide to “car dealer,” understand that the dealer may also be a motorcycle, ATV or boat dealer.
• Mechanical Breakdown Insurance, For the rest of this Guide we will refer to mechanical breakdown insurance as MBI,)

Back to Top With an additive warranty, the obligor is a company that manufactures an additive that you(or some-one else) pour into your car’s gas tank, engine, radiator, transmission, et cetera. The manufacturer of the additive promises that if you use its additive, it will repair listed parts that break.

If someone tries to sell you an additive warranty in-person, by phone, by mail or over the internet after January 1, 2017, do not buy it, and please report the person and company to the California Department of Insurance. A VSCP is a company that holds a special “VSCP license” from the California Department of Insurance to sell VSCs in California.

(For the rest of this Guide, we will refer to the California Department of Insurance as CDI.) The VSCP is the obligor – the company that is legally required to pay the cost to repair your vehicle if it has a covered breakdown. A VSCP must meet many requirements in order to be granted a VSCP license by the CDI.

The most important requirement is that a VSCP’s promise to pay for repairs must be guaranteed by a “backup” insurance company. (However, there is an exception to this requirement, which we explain later.) The backup insurance company must be authorized by the CDI to provide the guaranty. If a VSCP goes out of business, or simply decides not to honor a claim, a consumer can have the backup insurance company review the claim.

If the claim should be paid, based on the nature of the breakdown and the language of the VSC, then the backup insurance company must pay for the repair if the VSCP does not. The name and address of the backup insurance company must be clearly printed on the VSC.

The only VSCPs that do not need to have backup insurance are VSCPs that have at least $100,000,000 (one hundred million dollars) in “net assets,” or are owned by a company that has $100,000,000 in net assets and agrees to guarantee the obligations of the VSCP.Vehicle Service Contract Provider (VSCP) VSCs If you cannot find the name and address of the backup insurance company on a VSC, and a dealer selling you the VSC cannot show you the backup insurance company’s name and address on the VSC, you should check with the CDI to make sure the VSC is legal before you buy it.

Only a car dealer with a car dealer’s license from the California DMV may legally sell you a VSC issued by a VSCP. Some VSCPs ignore this law and sell VSCs to consumers over the Internet, rather than through car dealers. Companies that sell VSCs in California over the Internet are committing a felony.

You should never buy a VSC over the Internet. Some VSCPs are actually owned by car manufacturers. Many VSCPs are owned by a company that also owns the VSCP’s backup insurance company. Some car dealers sell VSCs in which the dealer, rather than a VSCP, is the obligor. These “dealer-obligor” VSCs are nearly identical to VSCs issued by VSCPs.

The main difference is that when you buy a dealer-obligor VSC from a dealer, the obligor is the dealer, rather than a VSCP. As with a VSC issued by a VSCP, a dealer-obligor VSC must show the name and address of a backup insurance company authorized by the CDI.

The backup insurance company must honor valid claims for covered repairs if the dealer fails to do so. Another important difference between a VSC issued by a VSCP and a VSC issued by a dealer-obligor is that dealer-obligor VSCs will include the name, address and phone number of an “administrator.” An administrator is a special company that will handle claims, process cancellation refund requests, and answer questions about the VSC on behalf of the dealer that sold the VSC.

VSCPs also sometimes use an administrator. When you buy a VSC you may think you are buying an insurance policy. This is because VSCs are very similar to insurance policies. However, VSCs and insurance policies are actually different. An insurance policy is a contract between you and an insurance company.

1. The insurance company is the obligor.
2. If you have a claim, you deal directly with the insurance company (or a claim adjuster hired by the insurance company).
3. A VSC, however, is between you and a VSCP or dealer.
4. VSCPs are not, technically, insurance companies.
5. Many laws apply to MBI policies that do not apply to VSCs.

For example, the price of MBI policies is regulated by the CDI; the price of a VSC is not regulated. Consumers may get the most for their money with an MBI policy, especially one purchased directly from the insurance company. The price of MBI policies is regulated by the CDI to make sure the price is not excessive.

• Confirm the insurance company providing the MBI is licensed by the CDI.
• If you buy MBI from the website of someone other than the insurance company itself, i.e. an insurance agent, make sure the agent is also licensed by the CDI.
• Confirm that an MBI insurer or agent is licensed at the “Company and Agent/Broker Information” page of CDI’s website, at www.Insurance.ca.gov or contact CDI’s Consumer Hotline by phone at (800) 927- 4357.

Never buy MBI unless you confirm with the CDI that both the insurance company and any agent offering the MBI are properly licensed in California! Back to Top All repair agreements contain many provisions. The most important provisions involve:

• The Obligor
• The PriceThe Duration
• What Is Covered
• What Is Not Covered
• What You Need to Do If There Is a Claim
• The Backup Insurance Company

The Obligor — When you pay several thousand dollars for a car you usually get to drive away in the car. But when you pay hundreds or thousands of dollars for a VSC to protect against the cost of car repairs, you only get a piece of paper – a contract that is legally binding between you and the obligor.

• As discussed above in the section “Types of Repair Agreements,” there are three types of obligors: VSCPs, dealers, and insurance companies.
• Over the past 40 years, dozens of VSC companies and car dealers have gone out of business.
• In many cases, car owners who purchased repair agreements from one of these companies that went out of business were stuck with unpaid repair claims.

Their repair agreements became worthless pieces of paper. If you buy a VSC, it is important that you only buy it from a car dealer, and that the VSC contains the name and address of the CDI-authorized backup insurance company. The CDI has received many complaints from people who bought repair agreements from companies that were operating illegally.

Licensed VSCPs, and insurance companies that sell MBI policies, must follow dozens of rules to reduce the chance of bankruptcy, pay valid claims promptly, and otherwise treat people fairly. Unlicensed companies that sell repair agreements by phone, mail or the internet often do not pay valid claims and are committing a felony.

The Price — The price of a repair agreement depends mainly on the type of car, how many miles are on the car’s odometer when you buy the agreement, the kinds of repairs that the contract covers or does not cover, and the number of years or miles the agreement covers before it expires.

Car dealers are allowed by law to make a profit on the sale of a VSC. They may charge you as much as you are willing to pay (and as much as the company financing your vehicle is willing to finance). By contrast, the CDI limits the price of MBI to what is considered fair and reasonable. MBI may only be sold by CDI-licensed insurance companies and CDI-licensed insurance agents.

Agents who sell MBI receive a commission. Unlike VSCs, MBI legally may be bought and sold on the Internet, but only by an insurance company or agent licensed by the CDI. You can negotiate the price of a VSC with a dealer, just as you can negotiate the price of a car.

• However, you cannot negotiate the price of MBI.
• One way to effectively negotiate the price of a VSC is to also shop for MBI (only from a CDI-licensed insurance company) before you go to the dealer to buy your car.
• However, if you compare MBI with a VSC, be careful to compare coverages and exclusions, and not simply the price.

The Duration — All repair agreements expire after a certain length of time or number of miles. The duration typically ranges from one year/ twelve thousand miles to ten years/one-hundred thousand miles. What is Covered — Different repair agreements provide different coverages.

For example, so-called “power train coverage” might only cover the major components of the vehicle, such as the engine, transmission and drivetrain. A more expensive agreement with broader coverage will cover the engine, transmission, drivetrain and other major parts, such as the suspension, brakes, air conditioner and steering.

The broadest level of coverage includes every mechanical part except the parts listed on the contract as “excluded.” This type of contract is sometimes called an “exclusionary” contract. Some people only want to have coverage for the most expensive repairs, like repairs to the engine or transmission.

• They are able and willing to pay for less expensive repairs using their savings, or prefer to buy a less expensive repair agreement even if it means less coverage.
• Other people want their repair agreement to cover more repairs, including less expensive repairs (for example, water pumps or sensors), even though a “broad” repair agreement covering more repairs will cost more, and a covered breakdown may never occur.

It is common for VSCs and MBI policies also to pay for towing and rental car costs that you incur while your vehicle is being repaired. Some agreements also provide coverage for lost or damaged key fobs, windshield damage, paintless dent repair (PDR), or damage to tires and wheels from road hazards.

When considering the purchase of a VSC or MBI policy, you need to read the whole agreement to learn which parts are covered. As noted above, the broadest coverage is a so-called “exclusionary” contract, in which all parts and services are covered except the parts and services listed in the “Exclusions” section of the VSC.

With contracts that provide coverage that is less broad, a part or service must be specifically listed in the “Covered Parts” section of the contract to be covered. Regardless of whether a repair agreement is of the “exclusionary” type, or the “specified parts” type, a breakdown to a part will not be covered if a provision in the contract excludes coverage based on the nature of the breakdown (for example, if you contributed to the breakdown by failing to properly maintain the vehicle).

• What is Not Covered — Many consumers mistakenly believe that a vehicle repair agreement will cover anything and everything that might break.
• This is never true! All repair agreements have a section called “what is not covered” or “exclusions.” Before you buy a repair agreement, read this section slowly and carefully! You must disregard any coverage that is verbally promised by a sales person but is not contained in the written repair agreement! You may find that parts listed as covered may actually not be covered if a breakdown occurs in certain ways.

For example, repair agreements often won’t cover a breakdown caused by or involving:

• Failure to service the car as recommended by the manufacturer
• Overheating
• Insufficient, improper or contaminated coolants, lubricants or other fluids
• Alterations to the vehicle
• Towing excessive weight
• Towing without a manufacturer-installed or a manufacturer – authorized and dealer – installed tow package
• Damage to a non-covered part caused by the failure of a covered part
• Damage to a covered part caused by failure of a non-covered part
• Damage that existed prior to the effective date of the contract (the “pre-existing condition exclusion”)
• Negligence or abuse

Sometimes an auto part covered under a repair agreement is damaged due to the failure of a non-covered part. For example, many VSCs exclude coverage for hoses. If an engine is damaged due to a sudden loss of coolant through a cracked hose, many VSCs will not cover the engine damage.

The VSCP or claim administrator will deny the claim because a contributing cause of the damage (a cracked hose in this case) is not covered. Never continue to drive a car once a dashboard warning light comes on that indicates a serious problem requiring you to stop driving immediately. Continuing to drive a car with such a warning light on is an example of what is called “continued operations.” Continued operations will almost always result in a repair claim being denied based on several exclusions, e.g.

driving your car without proper fluid; negligence or abuse; and/or overheating. Repair agreements may not or will not cover:

• Seals and gaskets (although coverage for these parts may be available as an optional benefit)
• Adjustments, alignments, machining of brake rotors and drums, shop supplies, and unauthorized diagnostic time.
• Correction of engine compression or excess oil consumption.
• Valve grinding, burnt valves, and worn rings.
• Mechanical breakdowns covered under a manufacturer’s new car warranty, manufacturer’s recall, or factory bulletins.
• Vehicles used to transport people or haul goods for profit (unless commercial use coverage has been expressly purchased).

“Wear and Tear” Coverage Some repair agreements exclude repairs needed due to “wear and tear.” However, many car repairs are needed precisely because a part wears out from a long period of use (or improper maintenance). Some experts believe that if a part is going to break on a newer car for some reason other than wear and tear (such as faulty design or manufacturing), it will usually break within the first few years.

In those first few years, almost all new cars are covered by a free, new car warranty provided by the manufacturer. Any breakdown covered by a manufacturer’s new car warranty will not be covered by a VSC or MBI. Before buying a VSC or MBI policy, you should carefully review what is covered and not covered to see whether repairs needed because of wear and tear are covered or excluded.

If wear and tear claims are excluded, you might want to consider buying a repair agreement that does not exclude such wear and tear claims. That way, if it is not clear whether a repair is needed due to wear and tear or for some other reason, it is more likely that the obligor will pay for the repair.

Again, it is a mistake to assume that a repair agreement will cover every repair your car may need. Routine Maintenance Required When a covered part that requires routine maintenance breaks and you cannot prove that the car was properly maintained, an obligor may not pay for the repair. Therefore, you must perform all routine maintenance that is specified in the repair agreement and owner’s manual, and must keep records to prove the maintenance was done.

Before you perform your own maintenance, check your repair agreement to see if it allows you to do so. If it does, and you perform maintenance yourself, keep receipts for products you bought and used, such as oil and other lubricants and fluids, filters, spark plugs, brake pads, belts and tires.

Also, keep a log indicating the type of maintenance you performed, and the date and mileage when performed. A lack of coolant or oil can cause major damage to the engine. Since repair agreements will not cover damage caused by a lack of routine maintenance, you should regularly check your engine for proper oil and coolant levels, and repair or replace heavily worn hoses and seals that might leak.

Back to Top Repair agreements always provide instructions on what to do if you need repairs. Read these instructions carefully as soon as you buy a repair agreement, and read them again when you determine that your car needs a repair. One important instruction is to report needed repairs immediately to the obligor or claim administrator.

1. All repair agreements have a toll-free phone number for this purpose.
2. A claim may be denied if you do not follow the contract’s instructions exactly.
3. For costly repairs, an obligor or administrator will likely dispatch an independent inspector to examine the car.
4. For all repairs that may be covered under the repair agreement, you will need to approve a “tear down.” A tear down is a partial disassembly of the area of the car with the problem so the inspector can determine what the exact problem is, and what might have caused the problem.

If, after the inspection, the obligor refuses to pay for the repair because the obligor thinks the repair is not covered by the repair agreement, then you will need to pay for the tear down and the repair yourself. However, you can try to get the obligor to reconsider its decision not to pay you.

This is discussed later under the section entitled “What Should I Do If My Claim Is Denied?” If the obligor or administrator says the breakdown is covered by the repair agreement, it will provide the repair facility with a “claim authorization number.” This authorization is a promise that the obligor will pay for the particular repair.

You and the repair facility should both write down and keep this authorization number, along with the name of the person giving the approval, what repairs were approved, and the date and time of the approval. As discussed earlier, VSCs are not insurance policies.

• However, because so many VSC companies went out of business without paying claims in the 1970s through 1990s, California law requires that a backup insurance company authorized by the CDI guarantee almost all VSCs.
• This guarantee means that if a VSCP or dealer fails to pay any claim, either because the VSCP or dealer is out of business, or because the VSCP or dealer simply does not think the claim is covered by the VSC, then you can seek to have the backup insurance company review the claim.

The law requires that the name and address of the backup insurance company be “conspicuously” printed on the contract. (If a VSCP has $100,000,000 in “net worth,” it is exempt from the requirement to have backup insurance.) A VSC without the name of a backup insurance company may be illegal and should not be bought without first confirming with the CDI that the VSC is legal.

Companies called “rating organizations” grade insurance companies on their financial strength. Some people prefer to deal only with the strongest insurance companies, for example those with an “A” or “A+” grade or rating. These people might not buy a VSC if the backup insurance company does not have at least an “A” rating.

You can check the Web- sites of insurance company rating organizations, such as A.M. Best, to see what the rating is of a backup insurance company named on a VSC you are thinking of buying. If a VSC includes the name of a backup insurance company, the backup insurance company must evaluate your claim if the obligor doesn’t (because it is out of business or for some other reason).

The backup insurance company must pay your claim if it is covered and not excluded. Some VSCs have backup insurance from a special kind of insurance company called a “risk retention group.” A risk retention group will always have the words “risk retention group” or “RRG” in its name. A risk retention group may be authorized to provide backup insurance, but it is not actually licensed by the CDI.

Because many laws that apply to licensed insurance companies and protect consumers do not apply to risk retention groups, some people recommend that you buy a VSC only if the backup insurance company is actually licensed by the CDI, and not if the backup insurance company is a risk retention group.

• To find out whether an insurance company is licensed by the CDI, check the “Company and Agent/Broker Information” page of CDI’s website,www.insurance.ca.gov or call the Department’s toll-free phone number, (800) 927- 4357.
• Many car repairs are covered by the new car warranty that comes automatically, free, when you buy a new car.

New car warranties are issued by the car’s manufacturer. They vary in their duration and in the parts they cover. Most new car warranties cover the major parts of your car for several years. If a covered part breaks during the term of a new car warranty, the warranty (not a VSC or MBI policy you brought) will pay for the repair.

1. Do not be rushed into buying a VSC. VSCs are long and complicated; before you buy one you need to take ample time to carefully read it to ensure it complies with the law and gives you the coverage you want. Pay special attention to the exclusions.
2. Get a copy of the actual VSC you are thinking of buying, not merely a brochure or summary, and take as much time as you need to read it before you buy. Make sure you understand what is covered and what is excluded, and who the obligor is.
3. Confirm that the VSC contains the name and address of a backup insurance company (or confirm with the CDI that the VSC is exempt from the backup insurance requirement).
4. You will probably pay thousands of dollars for a VSC. All you get in exchange is a piece of paper. You need to confirm with your own eyes what the paper says; you cannot rely on what the dealer tells you it says, or a brochure that summarizes the VSC. Brochures usually emphasize what is covered, and may not thoroughly describe what is not covered.
5. If you decide to buy a VSC, do so only if you can take the actual contract with you when you leave the dealership.
6. After you get home with your new VSC, read it again, paying special attention to the exclusions. If you decide you don’t want the VSC after all, you may cancel within 30 or 60 days and get a full or partial refund.

(See the “May I Cancel a VSC?” section of the Guide) Back to Top If you have a claim that is denied, there are several steps you can take to try to get the repair paid under your repair agreement.

1. Get as much information as you can from the claim administrator about why it is denying your claim. (While we refer in this section to the “claim administrator,” or simply “administrator,” you may be dealing either directly with the Obligor, or with a claim administrator hired by the Obligor.) Ask which specific provisions of the repair agreement the administrator is using to deny your claim. Ask what the administrator’s evidence is that those provisions apply to your repair. For example, if the administrator says it will not pay to repair your engine, and the engine is covered by the repair agreement, ask which exclusions are being used to deny the claim. If the administrator says the engine overheated, and the agreement does not cover overheating, ask what evidence the claim administrator has that the car overheated. Make detailed notes of what the administrator tells you, and try to get the reasons for a claim denial in writing from the administrator. If the vehicle has been inspected, obtain a copy of the inspection report.
2. Get as much information as you can from the mechanic or service writer at the repair shop where your car will be fixed. Does the mechanic/service writer disagree with the administrator? If so, why? For example, does the mechanic think there is no evidence that the car overheated? What does the mechanic or service writer think about the supposed evidence of overheating described by the administrator? Try to get the mechanic/service writer to put his/her evaluation in writing. If that is not possible, make detailed notes of what the mechanic/service writer tells you.
3. If the mechanic/service writer disagrees with the claim denial, talk to the administrator and explain what the mechanic/service writer told you, or,If possible, have the mechanic/service writer arrange a conference call or re-inspection and ask the mechanic/service writer to explain to the administrator why the claim should be covered. Again, make notes.
4. If the administrator still refuses to pay for the repair, or to pay as much as you believe should be paid, you might need to pay for some or all of the repair yourself and try to get reimbursed from the obligor or backup insurance company later. However, before having the repair started, make sure the administrator has either inspected the car, or told you that the administrator does not need to inspect it.
5. After the car is repaired (or while it is being repaired or waiting to be repaired), write an appeal letter or email. The letter or email will be based on your notes of the conversations you or the mechanic/service writer had with the administrator, and your notes of what the mechanic/service writer told you. If you have a VSC, your letter or email should be addressed to the insurance company that guarantees your VSC. If you have an MBI policy, address the letter to the insurance company. In your letter or email, explain why you believe the repair should be covered, and why the exclusions mentioned by the administrator do not apply. Attach copies of all relevant documents. These may include the written estimate or final invoice of the needed repair work from the repair facility, a letter from the mechanic/service writer explaining why the claim should be covered (if such a letter can be obtained), and proof that you have properly maintained your car (if the administrator denied the claim because the car supposedly was not properly maintained).
6. If an insurance company denies your appeal, you may seek assistance from the CDI. Please see the “Talk to Us” section for contact information you can use to file a complaint with the Department.
7. You may also wish to seek assistance from an attorney, and/or may choose to file a lawsuit in small claims court against the obligor (if your claim is $10,000 or less).

It is always frustrating to be without your car while waiting for auto repairs to be authorized or completed. Sometimes obligors or their claim administrators take several days to inspect a car to see if a repair is covered by a repair agreement. When there is no reasonable explanation for the delay, you may be tempted to go ahead and have your vehicle repaired without gaining prior authorization.

If you do this, the obligor or claim administrator may try to deny your claim. Consumers experiencing unreasonable delays from a VSCP or administrator should contact the backup insurance company listed on the VSC. If the issue is still not resolved, contact the CDI for further assistance. Do the same if you experience delay with a claim filed under an MBI policy.

Refer to the “Talk to Us” section in this guide. Once you have received authorization for your claim, you may still experience delays at the repair shop. If your car is being repaired and it is taking weeks or months to complete the repairs, and you think the delay is the fault of the repair facility, or you believe the repairs have been done improperly, you can contact the California Bureau of Automotive Repair (BAR).

Please see contact information for BAR in the “Resources” section of this Guide. The Bureau of Automotive Repair is the California government agency that licenses and regulates automobile repair shops, including those repair shops operated by auto dealers. Most VSCs and MBI policies provide a rental car benefit to help pay for the cost of a rental car while your regular car is in the shop.

Read your repair agreement to see what rental car benefit, if any, is available to you. A used car you buy may run fine when you buy it, but the risk of expensive future repairs may be high. Some used vehicles are not properly maintained by the prior owner(s).

Maintenance is very important in preventing major repairs. Many used cars need repairs not because they were poorly built, but simply because parts have worn out from long use or lack of proper maintenance. The more miles on a car when a repair becomes necessary, the more likely it is that the repair will be needed because the part wore out, rather than because the part broke due to bad manufacturing.

As discussed earlier, some VSCs, especially used car VSCs, do not cover repairs caused by a part simply wearing out; they may only promise to cover parts that break because they were not manufactured properly. However, while some VSCs exclude wear and tear repairs, others do not.

If you are going to buy a used car VSC, be sure to buy one that does not exclude repairs that are needed because of wear and tear. That way, the Obligor may approve payment for the repair if it is unclear whether the repair is needed due to wear and tear or a manufacturing defect. Generally, the higher the mileage on a used car, the fewer the number of parts that will be covered, and/or the broader the exclusions will be.

In addition to buying a used car VSC that doesn’t exclude wear and tear coverage, look for one that covers seals and gaskets, computers and sensors. If you are thinking about buying a used car, have it inspected by a reliable repair facility that is separate from the car dealer selling the car (unless the dealer is a franchisee of a manufacturer, and is selling the car “certified” with at least a one-year warranty free of charge).

• Buying a VSC is no substitute for a good, independent inspection before buying.
• Also, have the inspection mechanic review the coverages and exclusions of any used car VSC you are considering buying, and have the mechanic explain what is covered (wear and tear is a must) and what is not covered that might break.

Keep in mind, if there is any problem with your vehicle at the time of purchase, the Obligor may refuse to repair the vehicle because of a pre-existing condition exclusion. Make sure the dealer fixes any problems with your vehicle before you buy. Back to Top All VSCs are cancelable under California Civil Code Section 1794.41.

• You cancel the VSC within 60 days after receiving the contract, or 30 days if your car is used and came without a manufacturer warranty.
• You send your cancellation notice as specified in the VSC.
• You have not filed a claim with the dealer or VSCP.(If you have filed a claim, you may still cancel, but you will only receive a partial refund. The obligor may keep some of the purchase price based on the elapsed time or mileage, as specified in the VSC.)

You are entitled to a partial refund if you cancel after either 60 or 30 days (whichever is applicable) regardless of whether you have filed a claim. The obligor may keep some of the premium based on the elapsed time or mileage, as specified in the VSC.

• Obtain a sample of the agreement and read it carefully before deciding to purchase. Make sure the MBI insurer, or the VSCP and backup insurer, are licensed by the CDI. If the backup insurer is a risk retention group, and therefore not licensed by the CDI, understand that the CDI does not regulate the finances and claim handling of risk retention groups as closely as it does insurance companies that are licensed in California.
• Understand what the contract covers and does not cover. Read the “what is not covered” or “exclusions” section very carefully.
• Compare VSCs with MBI for cost and coverage.
• Perform all routine maintenance required by the repair agreement and owner’s manual. Keep a maintenance log and save receipts for all work performed.
• Contact the backup insurance company listed in the VSC if you have problems with the VSCP or dealer denying a claim.
• File a complaint with the CDI if the backup insurance company does not resolve your complaint.

Back to Top Contact regarding complaints concerning poor quality auto repairs Bureau of Automotive Repair 10949 North Mather Blvd.Rancho Cordova, CA 95670 Toll free: (866) 799-3811 Web site: www.autorepair.ca.gov Contact Arbitration Certification Program regarding Lemon Law information Department of Consumer Affairs 1625 N.

• Contratos de servicio de vehículo (VSCs) emitidos por “Proveedores Contratados para el servicio del vehículo”
• VSCs Contratos de servicio de agencia obligada
• Garantías de productos
• Seguro contra desperfectos mecánicos
• Términos importantes
• ¿Dónde comprar, cómo comprar y cuánto pagar?
• ¿Y las garantías de carros nuevos?
• ¿Qué debo hacer si rechazan mi reclamó?
• ¿Por qué no está listo mi carro?
• Contratos de servicio de carros usados
• Garantías de productos
• ¿Puedo cancelar un contrato de servicio de automóvil?
• Lo que debe recordar sobre los acuerdos de reparaciones de automóvil
• Recursos

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Can you negotiate an extended warranty on a car?

If you do want to purchase an extended warranty, remember that the price can be negotiated, just like the purchase price for the car.
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How many years does BMW warranty last?

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BMW extended warranty overview – BMW offers three levels of BMW extended warranty coverage, all of which must be purchased before your original factory warranty expires. Here’s an overview of the vehicle service contracts available to BMW owners: All extended auto warranty options may be extended up to 7 years/100,000 miles from the original in-service date.

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Will BMW offer a 5 year warranty?

THE BMW WARRANTY. – We’re confident in our precision and quality. That’s why we offer an excellent warranty on our BMW vehicles and Genuine BMW Parts. From a two year warranty on all genuine parts, to a five year warranty on any of our new vehicles and even an eight year / 160,000km warranty on the battery in our BMW High-Voltage Battery Electric Vehicles, we’re here to let you know we’re with you every step of the way.
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How long after you buy a car can you buy an extended warranty?

It is important to note that you have the option to purchase this auto warranty any time before the manufacturer warranty expires. You can even purchase an extended warranty after the manufacturer warranty expires, although the price will go up considerably.
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