Extended Auto Warranty
Frequently Asked Questions
Extended auto warranty frequently asked questions...
- Are your warranty quotes on this site quotes for real General Motors extended warranties?
- What is a GMPP extended auto warranty?
- What are the different GMPP coverages available?
- If I'm not satisfied with the warranty can I cancel it and get a full refund?
- How will a GM bankruptcy affect their warranty coverages?
- Can I buy a GMPP for a non GM vehicle?
- What's the difference between a service agreement and an extended warranty?
- My basic factory warranty has expired will I still qualify for the General Motors coverage offered here?
- Who should buy an extended warranty?
- Who doesn't need the extended coverage?
- How much do car dealers mark up their warranties?
- What should I watch for if buying from a dealership?
- How do I avoid overpaying for a warranty at the dealership?
1. Are your warranty quotes for real General Motors extended warranties?
Yes, all vehicle extended warranty quotes
from this site are for real General Motors Protection Plan extended warranties.
If you opt to buy, then the contract is actually sold to you from a franchised GM dealer that is authorized to sell the General Motors Protection Plan. Top
2. What is a GMPP extended auto warranty?
GMPP simply stands for General Motors Protection Plan and is endorsed by General Motors. Top
3. What are the different GMPP coverages available?
GMPP offers three levels of coverage:
- Major Guard - Top of the line and only coverage quoted from this site.
- Value Guard
- Basic Guard
There are links to online brochures for each coverage on my GM warranty page: GM Brochures. Top
4. If I'm not satisfied with the warranty can I get a full refund?
If you cancel your extended auto warranty coverage within 60 days of purchase, then you will be entitled to a full refund. If you cancel after the 60 days (assuming no claims filed), then you will receive a prorated refund, less an administrative fee. Top
5. How will a GM bankruptcy affect their warranty coverages?
The simple answer is that it won't in any way affect the General Motors Protection Plan.
Little more detailed answer:
General Motors Protection Plan (GMPP) vehicle service contracts are backed by MIC Property and Casualty Corporation (MICPAC).
MICPAC is a licensed and regulated insurer and a member of the GMAC Insurance Group led by GMACI Holdings LLC (GMACI).
A strongly rated company. Insurance companies of the GMAC Insurance Group, including MICPAC, maintain a financial strength rating of “A-” (Excellent) from A.M. Best Company, the main rating organization for the insurance industry.
The “A-” rating is assigned to companies that have, in the opinion of A.M. Best, an excellent ability to meet their ongoing insurance obligations. Top
6. Can I buy a GMPP for a non GM vehicle?
Yes, GMPP extended auto warranty coverages are available for most all make and model vehicles.
The excellent coverage offered by the GMPP Major Guard protection, partnered with this sites Never Pay Retail pricing model makes buying an extended vehicle warranty a winning proposition for almost all vehicles. Top
7. What's the difference between a service agreement and an extended auto warranty?
Lawyers. By definition a warranty is supposed to be offered free of charge and there is a charge for service agreements.
On this site I refer to service agreements as extended warranties, because that is the more common terminology and more easily recognized by consumers. Top
8. My basic factory warranty has expired will I still qualify for the General Motors coverage offered here?
Unfortunately, no. Once the basic factory warranty has expired, then it is not possible to sell the GMPP coverage, unless it was sold at the time the vehicle was purchased. Top
9. Who should buy an extended auto warranty?
As for who needs, or should buy an extended vehicle warranty, the list could go on and on, but there are a few that really come to mind and need this coverage more than others.
Buy an extended warranty if you:
- Are on a fixed income
- Have limited income
- Have limited savings
- Don't like surprises
- Enjoy peace of mind
Keep in mind that service department labor rates typically run between $80 and $100 per hour. It doesn't take long for a service bill to become very large and financially painful.
In addition, there are many more expensive parts to break on vehicles these days and the engine and transmission should not be your only major concern.
- On board computers
- Air conditioning
- Steering system
- Fuel system
- Engine cooling
Are just some of the common, yet expensive items that may need to be repaired or replaced. The days of the "backyard mechanic" are numbered. Top
10. Who doesn't need the extended coverage?
Some customers opt to "take their chances" and not purchase a warranty. This makes sense if the customer:
- Will trade/sell the vehicle before the factory warranty expires.
- Are very financially secure and can easily cover a $1,000, $2,000, or larger, unexpected repair bill.
- Are not concerned with the peace of mind that can come from having this type of coverage.
A quick note about #2 above. I used to work for a Volkswagen dealer and once saw a customer in the service department that had to have a new diesel engine put into his VW Touareg.
He did not opt to purchase the $1,600 extended warranty when he bought the vehicle and close to $20,000 (of his money) later he got his new engine installed. Ouch!!!
Whether you buy the extended auto warranty or not is up to you, but it is important to know that these Hi Tech vehicles today can be very expensive to fix. Top
11. How much do car dealers mark up their warranties?
This will vary from car dealership to car dealership and Finance Manager to Finance Manager, but I'd say the average mark up falls into the $800 range.
That being said, I've seen much higher mark ups and have had more than one Finance Manager brag about selling an extended warranty with $2500 or more in profit. Top
12. What should I watch for if buying from a dealership?
Outside of the oftentimes ridiculous profit that car dealers try to make from the sale of extended warranties, you'll want to know what coverage you are getting.
I'll apologize in advance to all the legitimate finance managers out there, but the brunt of the blame for extended auto warranty scams, lays on the shoulders of the finance manager.
I've seen finance managers tell customers that they will have full coverage for 5 years or 60,000 miles. It doesn't appear on the surface that they are getting a bad coverage, but the problem is the vehicle (this applies to brand new vehicles) already has a 5 year 60,000 mile coverage from the factory.
They will sell this coverage leading the customer to believe that it begins when the factory warranty runs out, but it really starts from day one and/or expires when the odometer reads 60,000 miles.
Another warranty scam, or outright lie, I've seen is to tell a customer that they have full (exclusionary) coverage when in reality they are only buying a limited powertrain coverage.
In more of a "failure to communicate" type of situation a finance manager might say that it is a full coverage, but fails to disclose that it does not cover items like:
- Normal maintenance items:
- Oil changes
- Brake pads
- Rotors, etc.
- Over heating
- Air bags
- Emissions systemsand/or
- ABS components
Be sure to know the term of your coverage, when it begins and ends, and the systems covered on your vehicle. Top
13. How do I avoid overpaying for an extended auto warranty at the dealership?
Simple. Go prepared. If you plan on taking the Finance Manager at the dealerships word for it, that it's a great deal, then go ahead...But who is it a great deal for? The Finance Manager or you?
Extended auto warranty quotes are free, there is no obligation to buy and it usually takes about 60 seconds to fill out a quote form. You can get a quote for GM Warranties here. Top
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