GENERAL MOTORS PROTECTION PLAN
This page provides valuable information about vehicle service and maintenance contracts. Scroll down the page or click on one of the links below to go to a specific topic.
- What are vehicle service and vehicle maintenance contracts?
- Do I need a vehicle service contract?
- Why is the company offering the contract important?
What are vehicle service and vehicle maintenance contracts?
Vehicle service contracts are known by several names including mechanical service agreements, extended service contracts and extended warranties. These products were developed in response to consumer needs for mechanical breakdown coverage and ancillary services after the expiration of the manufacturer's warranty. Dependent on the manufacturer, vehicle maintenance contracts may cover basic maintenance during the warranty period.
A vehicle service contract pays the cost of vehicle repairs. A maintenance contract is limited to known, scheduled maintenance expense such as oil changes or tire rotations.
Do I need a vehicle service contract?
Most likely you'll own or lease your vehicle beyond the manufacturer's warranty. Unexpected repair costs can be costly, not to mention the difficulty of being without your vehicle. GM vehicle service contracts can reduce the hassle and inconvenience of a breakdown or repair by providing:
- Coverage of components against failure, even if it results from wear and tear *Wear and Tear Coverage: The applicable coverage in the event an original or like replacement part is unable to function in normal service.
- Roadside assistance or towing
- Alternate transportation or rental
- Quality repairs by a GM dealer without excessive paperwork and unanticipated expense
Cost and Convenience
With the technology used in today's cars, repair costs have risen and will probably continue to do so. One major out-of-warranty repair can exceed the cost of buying a vehicle service contract.
Not only will the GM Protection Plan minimize or even eliminate out-of-pocket expenses for covered repairs, your GM dealer will handle the claim, so you have no paperwork.
Vehicle service contracts provide customers with financial security against unanticipated vehicle repair expenses. Depending on the coverage, additional benefits may include:
To learn more about how a vehicle service contract endorsed by General Motors can give you peace of mind for the long run, 7,000 GM dealerships across the United States and Canada To learn more about how a vehicle service contract endorsed by General Motors can give you peace of mind for the long run.
- Alternate transportation or rental during the repair
- Roadside assistance or towing
- Convenient service at more than 7,000 GM dealerships across the United States and Canada
Why is the company offering the contract important?
Regardless of the type of coverage selected, the company behind the plan is very important. A service contract is a promise to pay, in the future, for covered repairs and services. That contract is only as good as the company that backs it. The GM Protection Plan is fully insured by member companies of GMAC Insurance Holdings, Inc.
When you buy a service contract, you transfer the risk of future repair costs to a company, trusting them to pay your covered repairs sometime in the future. The company must be in business for the long haul, well into the future. The GM Protection Plan is administered and underwritten by member companies of the GMAC Insurance Group.
About the Contract
A vehicle service or maintenance contract has several parts to consider when making the decision to buy and when comparing competitive plans. These include:
- Limits of Coverage
- Roadside Assistance
- Time and Mileage
- Cancellation Policy
- Financial Strength and Rating
- Tips for Shopping Smart
Limits of Coverage
The extent of the repair services coverage depends on the vehicle service contract.
The extent of the maintenance coverage depends on the vehicle maintenance contract.
- Limited coverage may include a few major assemblies
- Extensive coverage protects virtually all mechanical, electrical and computer components
- Services may include limited towing, while premium coverage will include full roadside assistance
- Rental coverage will have varying dollar limits or days of coverage
Regardless of the plan, it is important that the terms, conditions and coverage of the contract be written clearly and are easy to understand.
- Limited coverage may include oil changes and filter replacements
- Extensive coverage covers chassis lubrication and tire rotations in addition to oil changes and filter replacements
Some contracts offer a choice of deductibles. The deductible may be zero ($0), meaning that nothing is owed on a covered expense, or as high as $200 for the out-of-pocket amount paid by the customer. Deductibles may apply per individual repair or per claim.
Many vehicle service contracts offer rental or alternate transportation reimbursement. Rental conditions and benefits usually vary according to:
- Qualifying repair time
- Number of days of rental
- Dollars paid for rental (daily)
- Total dollars paid
- Extensions based on a parts delay
Roadside Assistance provisions include more services than simply towing a disabled vehicle. Additional benefits may include:
- Emergency lock-out service
- Fuel service
- Battery jump-start
- Flat tire change
- Toll-free roadside assistance hotline
Time and Mileage
Vehicle service and maintenance contracts cover a specific amount of time and mileage. Generally, a customer will be able to select from a number of time and mileage options. The time is the "term" and is referred to in months or years. The contract will be in effect until either time or mileage is reached.
<>P>All vehicle service and maintenance contracts should have a clear, easy-to-understand cancellation policy.
Many vehicle service contracts charge a fee when canceling on a "pro rata" basis (the contract cost is based on the percentage of time or mileage used of the total contract). A pro rata cancellation fee is used when the "free look" period has expired.
Some company plans are non-cancelable. The GM Protection Plan is cancelable. However, when the plan chosen is part of a sales promotion, the refund will not be given to the plan holder.
Financial Strength and Rating
The company backing the plan is very important. It is the entity you have contracted with to pay repair claims and services. If the company is unreliable or goes out of business, so goes the protection you thought you purchased. The companies who issue the GM Protection Plan or Mechanical Repair Protection are fully insured by members of the GMAC Insurance Holdings,Inc. This means any GM Protection Plan or Mechanical Repair Protection you purchase is completely secure . . . all backed by more than 75 years of experience serving the GM family of satisfied customers.
Tips for Shopping Smart
Buying a vehicle service or maintenance contract is an important decision. Here are some tips to help you shop smart:
- It's important to know who is backing your contract. Ask yourself and your dealer these questions:
- Is it a genuine GM Protection Plan or Mechanical Repair Protection? Only GM Protection Plans and Mechanical Repair Protection have the endorsement of General Motors and the full strength and backing of GMAC Insurance.
- How long has the company been in business? GMAC Insurance Group, which administers the GM Protection Plan and Mechanical Repair Protection, has been in business more than 75 years.
- Will your vehicle service or maintenance contract be fully insured? All GM Protection Plan and Mechanical Repair Protection vehicle service or maintenance contracts are fully insured.
- Make certain the vehicle service or maintenance contract clearly states:
- Length of Coverage (Time and Mileage)
- Cancellation & Transfer Policy
- Ask to see a sample of the contract and review it carefully.
- To see sample Major Guard, Value Guard, Basic Guard, Smart Protection, Smart Care and Goodwrench Care contracts.
- Does the contract cover wear and tear *Wear and Tear Coverage: The applicable coverage in the event an original or like replacement part is unable to function in normal service. as well as mechanical failure and what is the difference?
- Some vehicle service contracts pay for failures due to defects only. Failures due to both defects and wear and tear *Wear and Tear Coverage: The applicable coverage in the event an original or like replacement part is unable to function in normal service. are covered by the GM Protection Plan and Mechanical Repair Protection, provided the repairs are not specifically excluded in the contract coverage.
- Some components are more likely to wear out than break and may not be covered in a mechanical failure only policy:
- Breakdown due to mechanical failure occurs when a component fails due to "defects in materials or workmanship."
- wear and tear *Wear and Tear Coverage: The applicable coverage in the event an original or like replacement part is unable to function in normal service. occurs when a component breaks down and/or fails to perform in normal service.
- Will you be charged just one deductible for each repair visit?
- Some programs charge a deductible for each component that needs a repair, even if it is in the same repair visit. The GM Protection Plan and Mechanical Repair Protection do not.
- Where can you get your vehicle repaired?
- There are more than 7,000 GM dealers throughout the United States and Canada ready to work for you.
- Is authorization required?
- With the GM Protection Plan and Mechanical Repair Protection, the GM dealer of your choice manages the paperwork and claims process for you.
- Are the repair locations convenient and are the designated repair centers reliable?
- With more than 7,000 GM dealers throughout the United States and Canada, there's one nearby. And all the dealers are staffed with GM-certified technicians.
- How long will you have to wait to see if your repair is covered by the contract?
- With the GM Protection Plan and Mechanical Repair Protection, most claims are approved immediately upon request.
Please contact Chuck Cheshire in our Finance and Insurance Dept. to discuss different Coverages that can be tailored to your driving habits.