Why You Should Buy an Extended Auto Warranty From National Repair Solutions?

When a vehicle's factory auto warranty expires, dealerships and consumers contact us. Our third-party vehicle service contracts are not the same thing as the original factory auto warranty, but many can provide better protection for your vehicle. People commonly mistakenly refer to a VSC as a car warranty, truck warranty, vehicle waranty, extended auto warranty, extended warranty, or a car repair protection plan, etc. These are commonly searched terms when searching for a VSC, which is not the same thing as a "warranty."



Today, there are more recalls and people using their factory warranties than ever.


Newer vehicles are great because of all the sophisticated, high-tech parts that didn't exist a year ago. The downside to this is that there are more recalls and people using their factory warranties than ever before. More "bells and whistles" mean more things that will break. We often play the role of a guinea pig for car manufacturers, testing parts during their first years on the road.  


Statistically, you're over three times more likely to use a VSC than any other auto insurance.


The average claims & loss ratio for a VSC is approximately 78%, meaning about 78 cents for every dollar spent on a VSC goes towards claims. The average claims & loss ratio for auto insurance is only about 28%. A VSC also protects against inflation, since labor rates constantly go up, but the price of your policy will never change after the day you purchase it.


Coverage guarantees you options.


A short monthly payment is always going to be easier than writing a blank check to the shop each time something breaks, but you are never stuck with your VSC if something changes down the road. All contracts are fully transferrable to a new owner, which adds resale value when you sell your car. All plans are also pro-rata refundable, so you never pay for what you don't use.


With what shops charge per hour for labor nowadays, a $30 sensor can cost you over $1,000.


You don't have to be on the side of the road with smoke pouring out of the hood to see an expensive repair. Most independent repair shops charge up to $90 per hour, with most dealerships charging up to $130 per hour. We all know nothing gets fixed in an hour. A part may be cheap, but you also pay for labor, diagnostics, fluids, and taxes. 


It's always cheapest to protect the vehicle you already own. 


Many people think the best course of action when they cannot afford a repair is to trade their car in. However, sales tax and interest on a new vehicle can cover the cost of a VSC. Plus, you may not necessarily be in the position to finance a new vehicle when yours breaks. You can give yourself a short, flexible payment for a VSC or five years of new car payments.


Oil changes and maintenance don't protect the components that see the most repairs.


There is no preventative maintenance you can do for sensors, computers or electronics. We can only cross our fingers and hope they do what they're supposed to. Oil changes typically only protect your engine, but vehicles are becoming more high-tech every year, and electronics go out when they want to. Not to mention brakes, suspention, differential, etc.   



Our administrative partners are the most reputable in the industry, and are all fully re-insured by AM Best A-rated trusts. Plus, every policy comes standard with a 30-day, money-back guarantee. Call us today and guarantee yourself the best deal. 



Frequently Asked Questions About Extended Auto Warrnaties!



What is the difference between an extended vehicle warranty and a Vehicle Service Contract (VSC)?


An extended auto warranty and a Vehicle Service Contract (VSC) are very similar with only a few differences. They both essentially do the exact same thing for the consumer. A VSC is a contract between you and the contract administrator, the company that underwrites the contract and pays the claims when you use it. Although a VSC is commonly incorrectly called an "extended warranty," from a legal standpoint, the term "warranty" can only be used when referring to the manufacturer's original warranty on a new vehicle, which is why you'll never hear us call our coverage a "warranty." The automotive service contracts industry is moving away from this terminology to avoid confusion amongst consumers. Ironically, consumers are still searching the web for phrases like "extended car warranty" instead of "vehicle service contracts" -- as a result, ethical vehicle service contract vendors are at a disadvantage.


How much does an extended auto warranty cost?


This is probably the most commonly asked question. Since every plan is different, and every vehicle is different, there is no one-size-fits-all price we can give anyone. Many factors can affect a vehicle's eligibility for coverage, as well as the cost of the plan. Every vehicle has different risk factors depending on the owner's driving habits and the vehicle's location. The most relevant risk factors are typically the vehicle's age and/or mileage. Location can also affect the price, since different regions have different labor rates and climate factors. Some manufacturers use more expensive parts and charge higher labor rates than others, so your brand of vehicle can also affect the rates. We offer flexible no-fee payment plans, and we're always here to help you get a payment out of the way. You're always covered for much longer than you have a payment. 


What does an extended auto warranty cover?


There are usually many different coverage options depending on the age, mileage, location, and type of vehicle being quoted. Every vehicle is individually qualified for coverage based on it's own unique risk factors at the time of quoting. Since National Repair Solutions is a broker of service contracts, we use four different contract administrators to find you the plan that covers the most components for the lowest cost. An Exclusionary, or "New Car" plan is the most similar thing to the original factory warranty. New Car plans will simply list the things which are not covered, like routine maintenance, and wear & tear components, such as tires, paint, glass, upholstery, etc. Any other type of plan, such as a Comprehensive or Powertrain plan, will list all covered parts, and if a component is not listed, it's not covered. Check out Our Contracts page to learn more about the different types of plans we offer.


How do I use my extended auto warranty?


When your vehicle needs a repair, you or your mechanic will call the claims number located on your policy ID card. The administrator pays for all covered repairs directly to the mechanic. Claims are pre-authorized and should be approved before any work is performed, so you're never in a situation where your vehicle's being worked on without you knowing if it's covered or not. Even if you just got a flat tire or locked the keys in the car, the number for roadside assistance is also on your ID card. 


Where can I use my extended auto warranty?


You're welcome to use any of our policies at any certified mechanic or any dealership of your choice nationwide. The standard for mechanic certification is Automotive Service Excellence, or ASE. You can tell if a shop is ASE-certified by a blue sticker in the window with the white letters ASE in the middle. Or you can simply ask the shop if they are ASE-certified. If they aren't ASE-certified, you probably don't want to have your car serviced there in the first place.​


I found some cheaper coverage online. Why choose National Repair Solutions?


There are certainly cheap contracts out there, but in our industry especially, you get what you pay for. If the price you're being offered seems too good to be true, it is often just that. With what repairs cost, if the policy cost is substantially lower than industry standards, there is something being sacrificed somewhere in the fine print. Our administrators are all backed by AM Best A-rated insurance companies with solid reputations of paying claims. One thing to avoid in particular is an unusually cheap program administered by a Risk Retention Group. The best type of VSCs are backed by insurance companies which must adhere to strict government regulation designed to protect consumers. 


I heard that any "extended car warranty" or VSC is a scam.


When trying to distinguish a good VSC from a bad contract, it is important to remember that, like most VSC companies, National Repair Solutions is a VSC broker. Every contract is different because every VSC has it's own administrator with it's own track record. There used to be a few shady entities in the automotive service contract industry who gave every company a bad name. Today the "auto warranty scam" is largely a thing of the past, thanks to the efforts of ethical industry participants who banded together to protect the integrity of the vehicle service contracts industry. But years ago, "auto warranty scam" and "car warranty scam" were frequent leads in the nightly news -- all because a few unethical companies decided that it was OK to rip-off their customers. Consumers were mad, regulators were mad, the Better Business Bureau was mad -- but nobody was angrier than the many companies who had always followed the rules and treated their customers right. Suddenly, because of a few bad apples, the reputation and integrity of the entire industry was at risk. But that was then; this is now. While there are many "complaint" or "scam" websites bashing service contracts, it is important to remember that these sites don't show the thousands of satisfied customers who don't blog about it every time they use their contracts. All contracts offered by National Repair Solutions are administered by the most reputable companies with top Better Business Bureau ratings, which you don't get from ripping people off. Check out 'Our Contracts' page to view our different plans and their respective administrators.


Why does my extended auto warranty have a waiting period (grace period) before I can use it?


Every policy comes standard with a grace period to ensure that there are no pre-existing problems when you set up your policy. It would cost the companies a lot of money to physically dispatch people to inspect the thousands of vehicles covered every month, a cost that would be passed along to the consumers. Instead, you must simply wait a short amount of time and drive a small amount of miles before being able to use your policy.


Extended Auto Warranty Terminology!


Administrator -The administrator is the obligor, or the company agreeing to pay the claims, on a vehicle service contract. 


Broker-A broker, in respect to our industry, is a company who offers, sells, and often markets Vehicle Service Contracts directly to consumers.


Claim -A claim is filed when coverage is used. Claims can be approved or denied by the administrator or obligor. Once the claim is pre-approved by the administrator, the necessary repair work is performed and the customer usually pays a small deductible. Claims can also include the cost of using included benefits, such as roadside assistance, or rental vehicles.


Factory Warranty -A factory warranty is coverage that vehicle manufacturers include with vehicles when they are first manufactured and sold as new cars. Many car companies will typically include a 3-year/36,000 mile "bumper-to-bumper," as well as a 5-year/100,000 mile "Powertrain" factory warranty.


Limit of Liability -A limit of liability is the maximum amount of money that a contract agrees to pay out in claims over the length of the contract. Some contracts cover vehicles up to the actual cash value of the vehicle at time of purchase or repair. Some contracts cover vehicles up to a lump sum like $10-15,000 or the actual cash value of the vehicle, whichever is greater or less. Some contracts limit liability per component, such as $2,000 on the engine and $1,000 on the transmission, etc. 


Maintenance Requirements -Maintenance requirements are conditions outlined in the contract that the contract holder must adhere to in order for their contract to be honored in the event of a claim. These usually require the customer to keep up with their scheduled routine maintenance as recommended by the vehicle manufacturer.  


Powertrain -"Powertrain" typically refers only to a vehicle's engine and transmission. Some types of powertrain include more, such as the water pump, drive axles, 4X4, etc. 


Pro-rated/Pro-rata Refund - A pro-rated, or pro-rata, refund is a partial refund that takes into account what fraction of a guaranteed amount of use was successful and what part you did not receive. Example: You buy a radio for $30 and it has a 1-year guarantee. It stops working after 8 months. Since you didn't get the last 1/3 of guaranteed use, a pro-rated refund would be $10.


Risk Retention Group -A risk retention group (RRG) is an alternative risk transfer entity created by the federal Liability Risk Retention Act (LRRA). RRGs must form as liability insurance companies under the laws of at least one state—its charter state or domicile. In the automotive service contract industry, a RRG is the common form of administrator behind a "month-to-month" program. This is often bad for the consumer since this type of entity is not required to follow the same government standards as insurance companies, which are designed to protect consumers from shady business practices.


Technical Service Bulletin -When consumers report common problems with a specific component on a specific vehicle, the manufacturer must acknowledge this as a defect and issue a technical service bulletin, which mechanics use to diagnose and fix the problem. The manufacturer engineers sometimes find more than one reason for why these parts to fail or don't operate the way they were designed to, which is why sometimes there are multiple bulletins issued for the same part. Technical Service Bulletins do not extend the factory warranty, and manufacturers will only pay for these repairs if there is a recall. The only time Service Bulletins can become recalls is if they affect people's safety, such as airbag recalls.


Vehicle Service Contract (VSC) -A vehicle service contract, or VSC, is a contract between the contract's administrator and the customer in which the administrator agrees to pay claims for specific components outlined in the contract. There is always a total Limit of Liability for each contract as set by the respective administrator. The customer pays for their coverage, often using a no-fee payment plan offered through the broker via a finance company. 


Warranty -A warranty, or auto warranty, is coverage that vehicle manufacturers include with vehicles when they are first manufactured and sold as new cars. Many car companies will typically include a 3-year/36,000 mile bumper-to-bumper, as well as a 5-year/100,000 mile Powertrain factory warranty. As vehicles become more sophisticated with new, high-tech components, factory warranties can be limited to exclude things like GPS navigation systems, and similar complex parts which a third-party service contract may be able to cover.