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Frequently Asked Questions About Our Auto Warranties

These general questions apply to all our Automotive products. For details for a particular coverage, please consult the coverage descriptions.

1. Why even consider an Extended Vehicle Warranty, if the manufacturer has a warranty on my vehicle now?

Waiting to purchase an Extended Warranty does not make sense; some people forget to Policy/Contract) and receive repair authorization on your covered repairs less a deductible (where applicable). All claims are paid directly to the repair facility of your choice with a corporate credit card, therefore, you do not have to pay for your repair and wait to get reimbursed. It is that simple.

2. Do you provided coverage for new as well as used vehicles?

We provide coverage on both new and pre-owned vehicles. The vehicle's make, model and mileage will determine the available coverage. We also offer coverage on recreational vehicles and motorcycles.

3. Does the protection you offer cover both parts and labor?

Yes, all protection plans cover 100% of all covered components, fluids, part labor charges, and all applicable taxes less the standard deductible. The price of parts and labor has increased and will continue to rise in the future. Labor rates today in different parts of the country range anywhere from $50.00 to $100.00 per hour. It is important to have coverage that will pay for both parts and labor.

4. If my vehicle is out of the manufacturer's warranty, can I still get coverage?

Many consumers do not realize that even after the manufacturer's warranty expires, they may still be eligible for extended coverage. We offer coverage on most vehicles that are less than 10 model years old and have less than 100,000 miles on the odometer.

5. What is the "original manufacturer's warranty"?

The "original manufacturer's warranty" period is defined as the initial full warranty that is provided for a new vehicle by the manufacturer. This is commonly referred to as the "bumper to bumper" warranty. On most vehicles, this is 3 years/36,000 miles. The "original manufacturer's warranty" does not include extended warranties purchased, any used car warranties issued by the dealer when purchasing the vehicle, or any manufacturer's powertrain warranty.

6. What is the difference between the coverages you offer?

This depends on which state you live in. We offer different programs in different states. Click here to learn about what coverages are available in your area.

7. Do your programs cover "Wear and Tear" and what is "Wear and Tear"?

Yes, our plans will protect your car, truck, R.V., motorcycle and boat when a part has worn beyond the manufacturer's tolerance. As with other mechanical breakdown programs, we do not cover items like spark plugs, brake pads or shoes, tune-up items, oil and lubricant changes, or rubber or plastic items.

8. What is the oldest a vehicle can be and the maximum mileage I can have on my car and still be eligible for coverage?

We offer coverage on most vehicles that are less than 10 model years old and have less than 100,000 miles on the odometer.

9. When does my coverage start and expire?

Please refer to our coverage section for detail.

10. Where will my Mechanical Breakdown Insurance Policy or Vehicle Service Contract be honored?

Your policy/contract is honored at any licensed repair facility throughout the United States and Canada. You have the option of taking your vehicle to a local auto dealership or any licensed repair facility nationwide. Additionally, your protection plan is accepted at national repair shops such as Firestone, Pep Boys, AAMCO, Cottman and many others.

11. What if I were to sell or trade in my vehicle to an auto dealer or sell it outright to another person?

Your Mechanical Breakdown Insurance Policy or Vehicle Service Contract will be honored at any licensed repair facility throughout the United States and Canada while you own the contract. If you decide to trade your vehicle you may cancel the contract and get a pro-rata refund or you may sell the car to a private party, and transfer coverage to the new owner. Vehicle maintenance receipts must be furnished prior to transfer indicating the vehicle has been maintained according to manufacturer recommendations.

12. Do I have to go back to my original dealer for repairs?

It is your decision whether to go back to the original dealer. With our nationwide protection plans, your choices are endless. You can take your vehicle to any licensed repair facility that makes you most comfortable. This includes, but is not limited to, your original dealer, your favorite repair facility, or any of our nationwide accounts such as AAMCO, Pep Boys, Firestone and Goodyear. We have over 36,000 different garages and shops that we have had repairs completed and paid by us. You can search by clicking here.

13. What happens if my dealer does not want to accept the coverage I purchased?

The repair facility is paid by corporate credit card for the repair. This is the method of payment most consumers use when making payments or purchases. As they receive instantaneous payment, there is no reason for them to deny repair to a customer that has Mechanical Breakdown Coverage.

14. I've never had problems with my vehicles; perhaps I don't really need an Extended Auto Warranty.

Car troubles seem to happen at the worst possible time. You may not have problems with your vehicle, but there is no guarantee that your vehicle will be trouble-free, especially as the vehicle's mileage and age increases. Given the high-tech electronics and computerized systems on vehicles today, one repair could easily pay for the cost of the entire warranty. Approximately one-third of the vehicles on the road today will suffer a major mechanical breakdown within the year. Secure your peace of mind by protecting one of the biggest investments you own -- your vehicle.

15. What is the procedure if I have a claim on my vehicle?

We make the repair process as simple as possible. If your vehicle breaks down and needs repair, take it or have it towed to any licensed repair facility and present your Policy/Contract to the Service Department. After they diagnose the problem with the vehicle, they will call the claims administrator (whose number is listed on your Policy/Contract) and receive repair authorization on your covered repairs less a deductible (where applicable). All claims are paid directly to the repair facility of your choice with a corporate credit card, therefore, you do not have to pay for your repair and wait to get reimbursed. It is that simple.

16. Is the deductible per repair or per visit?

Your deductible is applied per repair visit. Regardless of the number of items that need repair, you will only need to pay your deductible to the repair shop once per visit, and the number of claims on your vehicle is limitless. The total amount of coverage is limited to the value of your vehicle.

17. What other benefits besides the extended service plan do you offer?

In addition to our comprehensive warranty, most plans include benefits such as substitute transportation, towing, trip interruption, lockout service, and roadside and tire service. Please click here for more details on the plan.

18. What if my car breaks down and I am not near my home? Or after your business hours?

One of the best features of our program is that we allow you to take your vehicle to any licensed repair facility throughout the United States and Canada. Wherever you may be, our claims department has a toll-free telephone number for you or the repair facility to call. After-hours Service: We have a 24-hour cell phone service, 7 days a week, when our claims department closes at night or weekends. When we are closed, one of our Claims Specialists carries the company cell phone and is standing by to help and answer questions about a repair or vehicle problem.

19. Are seals and gaskets covered as a stand-alone item or only if the replacement is required as part of the repair?

This depends on the coverage selected. Check the coverage specifications for details.

20. Do you offer coverage on salvage or junk titles, rebuilt vehicles or vehicles with flood damage?

The program is only available on vehicles with a clean title history. Our program is not available on vehicles with a salvage or junk title, flood damage title, rebuilt or reconstructed title, vehicles where the odometer has been rolled back, and vehicles declared a lemon.

21. Do you offer programs for commercially-used vehicles?

This depends on the type of coverage available, as well as other factors. Check the coverage specifications for details.

22. Why does my vehicle require an inspection before my enrollment if your program?

All private party vehicle sales that are not under factory warranty will be required to pass a mechanical inspection prior to enrollment. This is to protect you as well as the underwriter if there is a pre-existing condition with the vehicle.

23. If I have my pre-owned vehicle inspected, how long do I have to wait before my coverage starts?

An inspection may be required for pre-owned vehicles. Pre-owned vehicles may be subject to a thirty (30) day and one thousand (1,000) mile waiting period before coverage begins (see coverage specification for details). Coverage will not be issued until the vehicle has passed inspection.

24. Why should I purchase a plan from MBA Direct when I could purchase a plan on the Internet from one of the other warranty companies that seem to have all the answers and are in some cases cheaper in the cost of their warranties?

Some of the Internet companies have no insurance company backing their warranties; or perhaps they are transferring the funds to an off-shore insurance company that they own that has no regulations or reserves to post in accordance with sound underwriting principles, and your money and the reserves to pay future claims could disappear.

Make sure you know who is holding your future claims money. Companies like MBA and other large companies are required to post reserves in a safe, secure account, file the programs with the state, and pay claims. We are dedicated to providing the most comprehensive and reliable extended warranty for your new or used car, truck, van or sport utility vehicle throughout the United States.

The State of California has passed a law to forbid the sale of Vehicle Service Contracts over the Internet in California. We are able to offer Mechanical Breakdown Insurance, which is allowed.

25. Why not just buy the Extended Vehicle Warranty from the auto dealer?

Purchasing a warranty from the auto dealer will definitely cost you more money. Auto dealers are just the middlemen, and Extended Auto Warranties are the most profitable thing the dealership sells, much more than the vehicle itself. Purchasing your auto warranty direct from MBA could save you as much as 50% to 60% or more. Check us out, get a free quote, and purchase directly on-line today!

26. What about warranties on leased vehicles?

If you are leasing a vehicle for longer than 3 years or 36,000 miles, it would be in your best interest to purchase a warranty. Manufacturer's warranties usually only cover the first three years or 36,000 miles. Let MBA be responsible for covered items during that time when the factory warranty will not cover items you are responsible for under the lease.

27. Where can I take my vehicle to be repaired?

You can take your vehicle to any licensed, reputable repair shop or dealership. The repair facility will contact us with the information on what needs to be repaired to put your vehicle back into the condition it was before the breakdown. Once that has been determined, we will authorize all covered repairs, minus your deductible. As soon as repairs are completed, the repairer will fax a completed, signed work order with VIN, mileage, year, make and model and a list of all parts and labor to us. We, in turn, call and authorize a credit card payment for those repairs using our corporate credit card. You are on your way, and we pay the repairer.

28. Am I covered out of town or out of the country?

When you travel in the United States and Canada, you'll have peace of mind that your future repair bills are covered, with 24-hour roadside assistance including towing, trip interruption (when over 100 miles from home), lost key/lockout service, fluid delivery, flat tire coverage and others.

29. Is it safe to purchase a warranty on-line?

Yes, it is safe and is the most convenient way to purchase your extended warranty. Our website is a secure site, and our 128-bit encryption will keep your information secure.

30. How can I pay for my warranty?

There are several ways. You may pay in full by check or over a secure web connection with Visa, MasterCard, or Discover (sorry, we do not accept American Express). We also have a payment plan. To take advantage of our six (6) payment plan. Please call (800) 347-0303 Ext. 6. We will debit the charge card of your choice for the 60% down payment, and we will either debit your card or issue remittance coupons for the remaining six (6) payments. There is a $39.00 processing fee for this option.

31. How can I be assured my claims will be paid in the future?

It is important to know the insurance company that is behind any plan you choose. All programs are insured and backed by a financially solid insurance company, which is rated A (Excellent) or better by the A.M. Best Co. All Claims are paid directly to the repair facility of your choice with a corporate credit card, therefore you do not have to pay for your repair and wait to get reimbursed. This assures you that your claims will be handled promptly and professionally.

32. What makes your company different from the other warranty companies?

The test of time -- our management has been in the warranty business since 1974 and insurance agents since 1960. We have sold and administered several hundred thousand contracts and paid out hundreds of millions of dollars in claim payments. We also have state-of-the-art software in the administration of our claims, so the warranty is simple to use. We want to do the very best for you!

33. What are some of the important things to remember after I purchase a warranty?

The most important thing is that your repair facility call us before any repair work is started on your vehicle. We give you a toll-free number which the repair company must call before work is started. They can call 24-hours-a-day, 7-days-a-week. We are one of the few warranty companies that has 24/7 service. Have them call us, just like you would if you were paying the bill. We must know what they are going to do to insure proper repair of your vehicle. We have all the Parts and Labor guides for every kind of repair.

You can take your vehicle to any licensed repair facility. We also have nationwide deals with Pep Boys, Firestone, and many others. If you are out on the road and don't know where to take your vehicle for repairs, call us. We have tens of thousands of shops that we have done business with over the last 20 years.

34. What else should I do?

Change your oil and filters according to manufacturer's specifications. Proper maintenance is one of the most important procedures to follow in order to keep your vehicle trouble-free in the years ahead.

35. Where can I call for references?

You can call the Better Business Bureau in Phoenix (or click the BBB logo on our home page). We are the Claims Administrator, MBA, Inc., and a member of the BBB Care Program. If for some reason we should go out of business, the underwriting insurance company will appoint a new administrator or will directly handle your claim. You are well protected as all of our insurance underwriters have an "A" or better rating. You are able to buy with confidence when you purchase mechanical breakdown coverage from MBA, Inc.

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