Extended Auto Warranty
Frequently Asked Questions
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?
3. What are the different GMPP coverages available?
4. If I'm not satisfied with the warranty can I get a full refund?
5. How will a GM bankruptcy affect their warranty coverages?
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?
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?
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?
9. Who should buy an extended auto warranty?
Buy an extended warranty if you:
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.
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?
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?
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?
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:
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?