FAQs

Frequently Asked Questions

What’s the difference between a warranty and a vehicle service contract?
There seems to be a lot of confusion for consumers about this. Simply put a warranty can only be issued by the original manufacturer who built the vehicle. Most new vehicles come standard with a 36 month or 36,000 mile factory warranty which covers just about every part on the vehicle, some manufacturers also issue powertrain warranties on just the major components such as the engine and transmission. Once the original warranty expires often times vehicle owners are forced to choose between worrying about unexpected repairs or just trading in and buying a new vehicle which costs thousands of dollars. That’s where vehicle service contracts come in. Since most manufacturers are unwilling to cover a vehicle once the factory warranty has expired several aftermarket vehicle service contract companies have emerged to fill that void. Vehicle service contracts work just like the original manufacturer warranty however it is not issued by the manufacturer it is issued by a third party such as the companies we work with at American Auto Assurance. Since our plans are not from the manufacturer they often are much more affordable and give you better protection with added benefits such has roadside assistance, towing, rental car and trip interruption. Since our coverage is not from a manufacturer though it is not a warranty it is a vehicle service contract.

How do I get started?
The Difference Between a Manufacturer’s Warranty and a Vehicle Service Contract. At American Auto Assurance, our goal is to make sure consumers understand vehicle service contracts and how they work.

One of the easiest mistakes to make is confusing a service contract with a car warranty. Although they are similar in some respects, the two offer very different types of coverage and come from very different sources.

Simply put, a Manufacturer’s warranty is coverage you receive when purchasing a new vehicle that comes directly from the manufacturer of that vehicle. This type of coverage is included in the purchase price of the vehicle and is designed to cover defects and problems that may have arisen during the design and/or manufacture process.

A vehicle service contract, on the other hand, is offered by a third party that is unaffiliated with the automotive manufacturer. It is designed to cover the costs of vehicle repair after the car warranty expires or to cover repair and replacement items that are not covered by the warranty while the warranty is active.

Typically, when you purchase a new car, your manufacturer’s warranty will last for a set amount of time. Once this warranty expires, if you still want coverage of repair costs for your vehicle, you will need to purchase a vehicle service contract or an extended warranty from the manufacturer/dealer.

When you purchase a vehicle service contract to protect your car, you are paying in advance for potential repairs down the road. In fact, vehicle service contract holders frequently receive repair reimbursements in excess of what they pay for the service contract. This is similar to home insurance and medical insurance in that you are, in effect, protecting yourself from having costs that you simply cannot afford.

Though different contracts have differing levels of coverage based upon the terms and conditions of each policy, parts, labor and/or sales tax are usually covered when a repair is needed…usually in excess of the contracted deductible amount.

In addition, vehicle service contracts can usually be purchased on any vehicle at any time (given reasonable time and mileage limits) whereas a manufacturer’s warranty is only applied to new cars (unless a used car still has remaining time on that warranty) and often may not be repurchased or extended.

Finally, a manufacturer’s warranty can only be serviced at a dealer franchised by the manufacturer. A vehicle service contract can be serviced at any repair shop of your choosing, unless limited by the contract.

Why do so many companies send me offers or even call me to tell me my warranty has expired and why do these offers look like they are from the manufacturer?
This is a very common tactic that some of our competitors use to deceive customers into believing they are dealing with the same people who built their vehicle. These tactics are illegal and violate several Federal Trade Commission and state consumer protection laws. Next time you receive a letter or random phone call like is please report it to your state attorneys general office. American Auto Assurance does not engage in any of these types of tactics we believe in truth in sales and will never attempt to mislead you into purchasing a vehicle service contract.

Where can I take my vehicle for repairs?
Unlike most dealership plans that require you use the issuing dealer for repair work; American Auto Assurance allows you to choose any licensed repair facility in the United States or Canada when your vehicle has a breakdown. Simply present your contract number and the toll free number for claims to your service advisor and remind them to call in the claim prior to performing the repairs. Claims are paid by corporate credit card directly over the phone to your mechanic; all you pay is the deductible if you have one.[/slide]

What if my repair facility will not accept your plan?
We’ve yet to find a repair facility that will turn down a corporate credit card. Once the repair facility performs the diagnosis and determines the cause of failure, the A.S.E. certified claims adjuster will then determine whether the repair is covered or not. If covered, the repair facility will then receive payment directly over the phone by corporate credit card. The whole process is quick and easy which gets you back on the road as soon as possible.

Who pays the claims on the service contract?
It depends on which one of our providers is offering the best price and program for your vehicle. We have a combined experience of over 20 years working in this industry and have spent countless hours researching hundreds of vehicle service contract providers. This allows us to pick and choose only the top rated companies that provide the very best in claims administration and customer service. Our representatives are trained to inform and put the customer first, not to say anything to make a sale and you can be sure that all details of the contract including the provider and insurer will be disclosed along with any other important details before you purchase.

Who insures your service contracts?
We require that our providers properly reserve each of the vehicle service contracts that we sell. We also require that in addition to reserves the provider must also be fully insured by an A.M.’s best A rated insurer and be a member of the Better Business Bureau with a satisfactory rating. This gives our customers several layers of protection in the unlikely event that one of our providers is unable to meet their obligations and ensures that our customers are given the very best in claims administration and customer service.

Can I see a copy of the contract I’m thinking about purchasing?
Absolutely, we would be glad to email or fax you a copy of the service contract we are offering on your vehicle for your review. Plus our representatives are the most knowledgeable in the industry and would love to answer any question about any line of the contract you may have. You can reach us toll free at (888)807-3531.

Do you offer payment plans?
Yes, today most repair facilities charge $85.00 – $125.00 per hour plus the cost of the part and a diagnosis fee, the average cost of a repair is around $1200.00 and most repair facilities do not allow you to make payments instead they require payment in full before they release your vehicle. A key advantage to purchasing our coverage is that we don’t require payment in full we allow you to start with a small down payment and offer no fee payment plans and since this is not an offer of credit there is no credit check required, everyone qualifies!

What is the difference between an exclusionary plan and an inclusionary plan?
We offer both exclusionary and inclusionary plans (named component plan) to our customers, depending on what your vehicle qualifies for. Exclusionary coverage is a contract that has a section which only lists what is not covered. Instead of having a long list of covered parts for you to examine, this type of plan is only going to list what is not covered which is typically just routine maintenance to the vehicle such as oil changes, alignments, tires and brake pads. For this reason an exclusionary plan is considered to be the very best type of vehicle service contract you can purchase. This type of coverage is usually offered on newer vehicles that are less than 5 years old and under 50,000 miles.

An inclusionary plan is a contract which has a covered parts section which lists exactly which parts are covered by the contract, if the part that fails on your vehicle is not listed it would not be covered. Inclusionary plans are considered to be good protection for older higher mileage vehicles but since they do not list every part of your vehicle there are several items that will not be protected. This type of program is usually offered on vehicles that are older and have over 50,000 miles.

Do you cover parts and labor?
Yes, when you take your vehicle in for a covered repair all of our vehicle service contracts will cover the parts, labor and diagnosis fee and unlike some other providers our plans pay the RETAIL parts and labor rate, so your mechanic gets paid the national retail average of the repair which is what should normally be charged. Simply present your service contract to the repair facility and make sure they call the claims number before they make any repairs. Once the claim is approved payment is made by corporate credit card right over the phone to your repair facility.

What additional benefits come with the vehicle service contract?
With a vehicle service contract through American Auto Assurance you’re not just getting protection from repair bills, you’re getting total peace of mind for your driving experience. Every contract comes standard with 24 hour roadside assistance. Anywhere in the country, if you run out of gas, have a flat tire, need a jump start or lock the keys in your vehicle simply call toll-free any time day or night 365 days a year. We also include reimbursement for your cost of towing and for a rental car when you bring your vehicle in for a covered repair. If you breakdown over a hundred miles from home and have to stay in a hotel while your vehicle is getting repaired we even provide reimbursement for your meal and lodging expenses!

Are there limitations on how many times you can use the plan?
No, all American Auto Assurance policies allow unlimited usage. No matter how many times your vehicle breaks down, we have you covered. Most of our policies cover up to the national auto dealers associations estimated value of your vehicle.

Do you cover salvage titles or vehicles which have been rebuilt?
No, vehicles with salvage titles or rebuilt titles are not eligible for any type of vehicle service contract we offer. These vehicles never seem to run the same after being salvaged or rebuilt and are much more prone to breaking down, which makes them to high of a risk to accept into any of our programs.

Do you cover vehicles with aftermarket modifications?
No, aftermarket modifications can really increase the likelihood of your vehicle breaking down. For this reason we are unable to cover vehicles with any aftermarket modifications such as but not limited to: oversized tires, headers, altered ignition system, altered engine management systems, free flow exhaust system, aftermarket sunroofs, alarm systems, snow plows or lift kits, regardless if vehicle was purchased with such.

Does the coverage have a waiting period or can I use it right away?
All American Auto Assurance plans come standard with a waiting period. Most plans are just a 30 day and 1,000 mile waiting period before you will be able to get claims paid under the service contract. You have to meet both requirement the time and miles.

My car is broken now, can I purchase coverage still?
If you have a major breakdown such as an engine or transmission we cannot offer coverage until you have your vehicle repaired and then fax or email an inspection report signed by the mechanic. This proves your vehicle has been repaired and is now in good running condition.

You may still be able to purchase coverage if you have a minor problem such as a power window motor or a sensor that has gone bad. However it’s very important that you understand the vehicle service contract will not cover any pre-existing conditions. We may be able to offer you coverage for future breakdowns but any problem your vehicle has before you purchase a service contract, even if it’s a minor problem, will not be paid for under the coverage we provide you with.[/slide]

I still have coverage left, why should I buy now?
If you have coverage now that means you are used to the peace of mind of being protected from unexpected repair bills, why would you want to lose that peace of mind as your vehicle gets older and higher mileage? This is why it only makes sense to get additional coverage before you current plan expires. You are much more likely to breakdown when your car is older, that’s when you need protection the most. Plus American Auto Assurance offers a low risk discount for vehicles that are already protected which means you will save hundreds of dollars by purchasing while you’re still covered by your current plan.

Can I call back and purchase the coverage later on?
Yes, unlike a lot of our competitors we want to help you get your vehicle protected anytime whether it’s when you initially call or after you’ve already received a quote. However in order to protect our providers from customers calling back after their vehicle has already broken down we do require an inspection on your vehicle when you call back before we can issue you coverage. The inspection can be performed by any licensed mechanic simply download the inspection sheet.