Where Can You Use an Extended Auto Warranty?

Where you can use an extended warranty

Where you can use your extended warranty mostly depends on whether you bought it from your vehicle’s manufacturer or a dedicated extended warranty company. You may also hear these warranties referred to as a vehicle service contract.

» UNDERSTAND THE DIFFERENCE: What to know about manufacturers’ extended warranties

If you have an extended warranty from your vehicle’s manufacturer

Most automakers with extended warranty programs, like Subaru Added Care plans or Chevrolet Protection Plans, require you to take your vehicle to a dealership for covered services, and they may automatically deny your claim if you go anywhere other than a dealer. Some will waive your deductible if you take your car back to the dealer that sold you your warranty, though, which is nice.

A representative from Mopar — the company that provides factory parts and warranties for Chrysler, Dodge, Jeep, Ram, Alfa Romeo and Fiat — confirmed this restriction for us in no uncertain terms: “We will deny the claim if you don’t go to a Mopar dealership.”

» LEARN: Pros and cons of extended auto warranties

If you have a third-party extended warranty

On the other hand, most dedicated extended warranty companies will let you take your vehicle to any ASE-certified mechanic in the U.S. for repairs. While most third-party warranties allow any ASE-certified shop, the real challenge is finding a mechanic willing to navigate the claims process. We talked to seven extended warranty companies for this article and researched a dozen more, and none of them had additional requirements beyond the repair shop having ASE certification.

ASE certification is a professional designation issued by the National Institute for Automotive Service Excellence. There are over 250,000 ASE-certified professionals nationwide, so you shouldn’t have to go far to find one.

If you’re not sure whether your usual mechanic is ASE-certified, ask them or check their website.

Some third-party warranty companies do have preferred networks of mechanics. However, these are just recommendations. CarShield, for example, has a Shield Repair Network of over 8,000 preferred shops that it claims can offer you “a faster claims experience.” Likewise, a representative from Toco told us that it recommends clients take their vehicles to Pep Boys or AAMCO. olive recommends finding a mechanic through RepairPal.

The implied advantage of going to a preferred shop is that you may have a faster, smoother claims experience. A preferred shop should communicate and negotiate with your warranty company more efficiently, which can mean you get your car back much faster.

Still, choosing a mechanic from your warranty provider’s preferred network is entirely optional.

But there’s a catch

We spoke with multiple independent mechanics who expressed mixed feelings about dealing with warranty companies. The two most common complaints were:

1. That the warranty company took too long to reimburse the shop
2. That reimbursement didn’t cover the shop’s usual rate

“Overall, it’s hit or miss,” one shop owner told us. “Sometimes it takes up to four days to receive payment from a warranty company, and until we’ve been paid, we can’t let the customer’s car go.”

Ensuring your warranty company will work with your mechanic is critical, but it’s also important that your mechanic will work with your warranty company.

“Every time we’ve used a third-party extended warranty company, it’s come back to burn us,” said another ASE-certified tech. “It takes forever to get a payment out of them, and they only cover what they think the cost should be.”

When asked what he’d say if a customer called in advance intending to use a third-party warranty, he said, “I’d politely suggest that they go somewhere else.”

To be fair, sometimes the breakdown in communication can be on the shop’s end. Barbara, a ConsumerAffairs reviewer from Kentucky, left a review on our site complaining that CarShield had denied their claims, but CarShield responded that the repair shop never actually called to file any claims in the first place.

In short, independent mechanics and warranty providers don’t always get along. What this means for you, the warranty holder, is that it may be worth your time to find a shop that has a preexisting relationship with your extended warranty provider.

If you’re lucky enough to already have a mechanic you trust, it’s worth talking to them before you get an extended warranty to make sure they’ll work with your provider when the time comes.

A ConsumerAffairs survey found that only 22% of people always trust mechanics. Most people (69%) said it depends on the mechanic, but a few (9%) said they never trust them at all.

What extended auto warranties typically cover

Most extended auto warranties are generally structured into three primary coverage tiers: powertrain, stated-component, and exclusionary.

They cover repairs due to mechanical breakdowns of major vehicle components, with covered components usually including:

• Engine and transmission
• Drive axle and drivetrain components
• Steering, suspension and braking systems
• Heating and air conditioning
• Electrical systems and onboard electronics

Now let's look at what's usually not included in warranty coverage.

What’s usually not covered

While extended warranties can save you money on certain repairs, they don’t cover everything. Common exclusions include:

• Regular maintenance (e.g., oil changes, brake pads, tire rotations)
• Cosmetic damage or wear and tear
• Damage from accidents, misuse, neglect or environmental causes
• Preexisting conditions or breakdowns during the waiting period
• Items like windshield wipers, headlights, fuses and upholstery

It’s always a good idea to read the fine print in your warranty contract so you understand what is and isn’t covered before a breakdown occurs.

Common additional perks and optional add-ons

Some plans may also offer perks depending on your provider and level of coverage. These often include:

• Roadside assistance (usually with a 100-mile towing maximum)
• Rental reimbursement (typically limited to $30 to $50 per day for a set number of days)
• Trip interruption for lodging and meals (often up to $150/day)
• Specialized add-ons: Key fob replacement, tire and wheel coverage and GAP insurance

We've included common coverage amounts and limits here, but you'll need to check with your provider to confirm if they offer these perks and how much coverage is provided.

What to do once your car breaks down

To find out what using an extended warranty actually looks like, we spoke to seven different warranty providers to learn about their ideal claims processes. Here’s the simple, five-step version of what they recommended:

1. Drop-off: You take your vehicle to an ASE-certified repair shop and share your warranty information.
2. Diagnostics: The shop diagnoses the problem and submits a claim to your warranty provider.
3. Preapproval: Your warranty provider approves or denies the claim based on the situation and the terms of your warranty agreement.
4. Repair: If approved, the repair shop completes the repair work and invoices your warranty provider.
5. Pickup: You retrieve your vehicle and pay your deductible to the repair shop.

» MORE: How an extended auto warranty works

Tips for a smooth claims process

The warranty providers we spoke with also told us that if you experience a breakdown, following these steps can greatly improve your chance of having a smooth claims process and getting your car back faster:

Warranties pay for repairs needed due to manufacturing defects, not parts that fail due to damage from an accident, abuse, neglect or missed maintenance.

1. Call your extended warranty provider immediately. While optional, it never hurts to call your provider right away to see if your plan will cover towing and get recommendations for nearby repair shops.
2. Notify the repair shop in advance that you have an extended auto warranty. The hard truth is that some shops may request that you take your vehicle elsewhere. They may even be doing you a favor; a provider-preferred shop may provide faster service.
3. Be prepared to wait anywhere from one hour to five days for a claim decision. Some issues can be diagnosed within the hour and approved for repair immediately. Other times, your provider may need up to five days to approve or deny a claim. It just depends on how complex the issue is and how backed up your warranty provider’s underwriters are.
4. Once the repairs are complete, make sure you don’t pay more than you need to. If your claim was approved and you didn’t need any repairs that weren’t covered by your warranty, you generally shouldn’t see a bill for anything other than your deductible. “We cover diagnostics, fees, taxes, everything,” said a rep from Endurance.

» LEARN: What does a car warranty cover?

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