How is a Vehicle Protection Plan BETTER than an Extended Warranty?
An Extended Auto Warranty can only be offered by a manufacturer and often times has numerous restrictions, limits, and usually only covers the powertrain of the vehicle.
A Vehicle Protection Plan usually covers the same if not more than an Extended Auto Warranty and is offered through a third party administrator, who is in turn insured by an insurance company through a Contractual
Liability Insurance Policy (CLIP). This CLIP protects our customers in the unlikely event that the third party administrator would go out of business or stop paying claims, the insurance company would immediately step in and
pay the claims.
Many Extended Auto Warranties are not insured, so if a manufacturer is sold or goes out of business, claims might not get paid!
(such as in the recent case of SAAB, where thousands of customers’ warranties became worthless due to their bankruptcy)