American Auto Shield Blog

Are All Automobile Warranties and Service Contracts Created Equal?

August 31st, 2010 Posted in Tips and Advice | No Comments »

No. Although they may all look the same at first glance, it’s important to determine the coverage you want and then find a plan that fits your needs and budget. Whether you’re purchasing from a dealer or a 3^rd party, researching your options and making an informed decision can make the difference between a quick and covered visit to the repair shop or a policy with limited coverage and an overwhelming repair bill.

American Auto Shield develops and administers a selection of vehicle service contracts with various coverage options depending on your needs and budget. Although each contract differs in its level of coverage, the optional coverage each offers can make a huge difference in your covered repairs down the line.

For instance, a mechanical breakdown policy without the Wear and Tear option will not cover parts worn but not broken. Therefore, if a part is obviously worn but has not failed, the breakdown policy will not cover the replacement of the worn part. The more miles on a car when a repair becomes necessary, the more likely it is that the repair will be needed because a part wore out, rather than because the part broke due to poor manufacturing.

Allow me to illustrate: your mechanic determined one of your lifters is broken, and the other three are worn and will most likely fail soon. A vehicle service contract with the Wear and Tear coverage option may replace the broken lifter and the three worn lifters if they are worn from normal use. A mechanical breakdown policy will only pay to have the one broken lifter replaced.

Many claim denials are due to “Normal Wear and Tear” situations. Those that purchase mechanical breakdown policies assume their policy will pay for these repairs since those parts are not listed in the “Exclusions” section. Consequently, most are extremely disappointed when their claim to replace or repair those parts is denied because “Normal Wear and Tear” is listed as an “Exclusion” in the policy. That’s why we can’t stress enough – review your policy before purchase. Often you don’t think to ask these things on the phone, but by reading through the contract you can take the time to figure out if it’s going to offer you the coverage you need. If it doesn’t, the company you’re working with may be able to provide a different policy that better suits you or, like American Auto Shield, it may provide supplemental coverages to enhance a policy you’re interested in. If they can’t, it’s time to research other companies and coverage.

Does your warranty or vehicle service contract cover your repairs anywhere and at any professional repair facility? Make sure you know before you make your purchase. Many extended warranties require you have your vehicle serviced at the dealership where it was purchased. In addition, many auto service agreements require you to take your vehicle to their authorized shops for repairs. Either can be a huge hassle when you’re stranded along the road with your family, you can’t find an authorized dealer or shop within a 100 mile radius, and little Molly is crying because you can’t get to Disneyland.

While a breakdown policy can be beneficial and a Wear and Tear policy is optimal, it is a mistake to assume that any policy will cover every repair your car may need. In most cases, a warranty or a vehicle service contract will require that the vehicle has been maintained according to the manufacturer’s schedule. In addition, allowing a vehicle to overheat and hard driving can negate a warranty or service agreement. Mechanics generally recognize the signs that a vehicle has been abused. Most auto warranties and vehicle service contracts will not cover negligence or abuse on the owner’s part. If you service your vehicle regularly and aren’t pushing your vehicle beyond its intended limits, your valid repairs should be covered…and you’ll extend the life of your vehicle! To find out how to avoid denied claims due to negligence and abuse, click here.

Tags: agreement, auto, breakdown, car, claims, contract, coverage, dealer, dealership, maintenance, manufacturer, mechanic, mechanical, repair, service, vehicle, warranties, warranty

Don’t Let These Two Things Void your Auto Warranty or Service Contract

August 30th, 2010 Posted in Tips and Advice | No Comments »

The two most important things for ensuring that either an auto manufacturer warranty or a vehicle service contract is honored are keeping up with maintenance and driving conservatively. If you had the foresight to add an auto service contract to your vehicle purchase, congratulations! You could potentially save thousands on repairs over the lifetime of your policy. However, be sure you adhere to the terms of the policy by taking care of your vehicle.

Terms exist to protect the warranty or service contract provider from unreasonable expenses and the purchaser from unreasonable costs to buy coverage, so it’s extremely important that you follow the terms to maintain that coverage. If you service your vehicle regularly and aren’t pushing your vehicle beyond its intended limits, your valid repairs should be covered…and you’ll extend the life of your vehicle.

The 2 most common reasons an auto warranty or a vehicle service contract claim can be denied are:

1. Negligence – In most cases, an auto warranty or service agreement will require that the vehicle has been maintained according to the manufacturer’s schedule. If it’s not performed on schedule, the auto dealer may deny future claims on your warranty. However, if regular maintenance and service (like oil changes) are performed, your repairs should be covered under the terms of your vehicle service contract and you should be back on the road, for less in many cases.
2. Abuse – Hard driving and pushing a vehicle beyond its intended limits can negate a warranty or service agreement. Mechanics will generally recognize the signs that a vehicle has been abused. In the drive train, abuse often results in distinctive forms of wear on the parts. Running the engine too hard is usually also apparent by the types of damage it inflicts. Driving conservatively will ensure your valid repairs will be covered.

You purchased a vehicle service contract because you care about the life of your vehicle. So take care of your vehicle – and your policy will take care of you! To learn more about maintaining and protecting your vehicle, click here.

Tags: auto, car, claims, contract, coverage, dealership, maintenance, manufacturer, mechanic, repair, vehicle, warranty

10 Easy Ways to Drive Green

October 23rd, 2009 Posted in Tips and Advice | No Comments »

If you really want to “Go Green” and lower your environmental impact, you can start by making some greener choices. What and how we drive AND how we maintain our vehicles can all affect our surroundings. Many of us aren’t able to buy a new hybrid vehicle, but by following a few of the easy green choices listed below, you can lessen your ecological impact.

1. Buy small

Your choice of vehicle makes a difference for the environment, and buying a small car is one of the best ways to reduce your car’s ecological impact. Additionally, options like third-row seats add weight to your vehicle and increase fuel consumption. Most of today’s subcompacts aren’t the uncomfortable and claustrophobic rides they used to be. For example, the Nissan Versa Hatchback is one of the most fuel-efficient small cars on the road and affords more than ample room in the front and back seats for family, groceries or camping gear.

2. Avoid larger engines

By passing on the engine upgrade, you can save money upfront, as well as on fuel down the road. Options like 4-wheel drive add weight to your vehicle and increase fuel consumption. Skip these options if you don’t need them. Test drive smaller engines and you may find that there is more than enough power.

Although many of us require a larger vehicle, you may be surprised to find that you still have cleaner choices. The better the fuel economy the more money you’ll save at the pump, while also reducing our dependence on oil.

3. Consider a more fuel efficient vehicle

The better gas mileage a vehicle gets, the less fuel it burns. Less fuel burned means less carbon dioxide, fewer natural resources used, and less pollution from the extraction and processing of fuel. The Environmental Protection Agency (EPA) and the Department of Energy publish an annual Fuel Economy Guide, available at www.fueleconomy.gov, to assist you in selecting a more fuel efficient vehicle. Manual transmissions also have been found to yield better gas mileage, averaging a savings of about 10% in fuel economy.

4. Consider a Hybrid or Clean Diesel

You can lower your fuel expense and reduce emissions with hybrids such as the all-new 2010 Toyota Prius, which the EPA expects to return 51/48 mpg. New technology has also enabled diesel-fueled vehicles to get better gas mileage and be just as clean as ordinary vehicles.

5. Maintain your vehicle

Be responsible about using and caring for your vehicle and it will reward you with better fuel efficiency, less pollution, and a longer lifespan. For instance, a clogged air filter can reduce fuel economy significantly. Additionally, ignoring your check-engine light is not only unsafe, you can cause further damage to your vehicle and/or void any warranty or service contract covering your vehicle. The check-engine light is your car’s early warning system that something is not right with your vehicle. It could be something simple like a loose gas cap or spark plug wire, or it can be something more serious. Don’t put it off, take your car in immediately and have it checked out by a technician.

6. Check your tires

You can choose tires that provide less rolling resistance than standard tires, equating to approximately 4% better fuel economy. No matter what tire you choose, underinflated tires can result in increased tire wear and reduced fuel economy. They also adversely affect handling, increase stopping distances and amplify the chance of tire failure, increasing your risk of an accident.

7. Drive fewer miles

According to the EPA, vehicles make up almost 1/3 of smog-forming emissions nationally, and because Americans are driving more every year, vehicles continue to be a significant contributor to air pollution. To minimize your environmental impact, combine activities into one trip, carpool, take public transportation, bicycle, walk, or find a better route to work, school, or the places you frequent most – heavy traffic will eat up your fuel – and your time.

8. Drive wisely

• Be aware of your speed – obeying speed limits can save fuel, as well as prevent pollution.
• Avoid rapid accelerations and braking, which burn more fuel.
• Use cruise control and overdrive gears.
• Remove excess weight from your trunk, and roof or bicycle racks if you aren’t using them.

9. Emit less

According to the EPA, tailpipe emissions from vehicles account for almost 1/3 of the air pollution in the U.S. You can visit the EPA’s Green Vehicle Guide to see air pollution and greenhouse gas scores for any vehicle.

10. Be careful when filling up at the tank

Topping off your tank beyond the automatic shut-off point causes fuel spills and emits more toxic fumes into the air, harmful to both you and the environment. In sweltering weather it’s best to refuel early in the morning or late in the evening when less fumes evaporate.

Tags: auto, car, claims, contract, coverage, dealership, economy, emissions, energy, environment, fuel, gas, green, hybrid, maintenance, manufacturer, mechanic, repair, service, vehicle, warranty

American Auto Shield BBB Rating Increased to A+

April 20th, 2009 Posted in News / General Information | No Comments »

As an accredited member of the Better Business Bureau (BBB), American Auto Shield (AAS) adheres to a strict code of ethics, and we set high standards of excellence that we strive to meet or exceed each day. In keeping with these standards, American Auto Shield has recently achieved BBB’s esteemed “A+ Rating“.

Consumers and clients can feel secure knowing American Auto Shield meets BBB Accreditation standards and the additional standards required to advertise affiliation with the BBB, including but not limited to the following:

1. Establish and maintain a positive track record in the marketplace.
2. Honestly represent products and services, including clear and adequate disclosures of all material terms.
3. Abide by all written agreements and verbal representations.
4. Approach all business dealings, marketplace transactions and
   commitments with integrity.
5. Address marketplace disputes quickly, professionally, and in
   good faith.

American Auto Shield’s Executive Team and our dedicated team of agents, vendors and employees appreciate the opportunity to offer professional and friendly service when our clients need it the most. We are committed to providing the highest level of service to meet our client’s needs, and encourage consumers and clients to contact us with any suggestions they feel may improve our services.

In addition to being an “A+ Rated” BBB Accredited Member, American Auto Shield is also Dun & Bradstreet (D&B) registered and a member of the Automotive Warranty Service Contract Association (AWSCA) and WebAssured.com. To learn more about American Auto Shield, our professional claims administration services, and our superior vehicle protection programs, click here.

Tags: auto, car, claims, contract, insurance, manufacturer, repair, security, vehicle, warranty