GM Extended Warranty Coverage Options
Protection Plan Options for Your GM Vehicle After the Factory Warranty Expires
There is no brand more synonymous with Detroit, and with the grand tradition of American car-making, than General Motors. Today, GM consists of 4 divisions, each one with a storied history and a loyal following. GM makes cars that Americans love to drive, from the classic Chevrolet brand, home of the iconic Corvette and Camaro sports cars as well as popular family cars like the Malibu, to the eminently drivable line of Buick luxury sedans and crossover vehicles, to the storied Cadillac brand, which set the standard for American luxury and elegance, to their rugged and reliable line of GMC trucks.
While GM has made some truly impressive gains in dependability lately, many GM owners want the security of an extended warranty to protect their investment and keep their car on the road when the inevitable breakdowns occur. While, each make operates independently when it comes to factory warranties on new car purchases, GM offers a single uniform extended protection plan across all four divisions.
While GM’s branded plan has the benefit of no-search-needed convenience, it isn’t the only option for consumers looking to extend coverage on their GM vehicle. An alternative solution is what is known as a vehicle service contract. Vehicle Service Contracts are provided by independent third parties, with no affiliation to any car manufacturer. Which means they’re an inexpensive alternative compared to dealer-owned warranty products and protection plans.
Here we’ll explore both options:
General Motors Extended Protection Plans
The pricing for GM’s official extended protection depends on whether your car is considered new or used:
New: Any GM vehicle that has been in service up to 12 months, and has 12,000 or less total miles on it.
Used: Any GM vehicle that has been in service over 12 months, or has more than 12,000 miles on it. GM’s protection plan costs are also determined by the kind of coverage you opt for. The highest level of coverage may not be available for all of GM’s divisions (and legacy brands like Hummer, Saturn etc.) and roadside assistance and transportation reimbursement are not necessarily included. The cost of the plan will be affected by the following factors:
• Level of coverage selected
• Deductible amount
• Months/miles of plan selected
Limitations of GMEPP
When considering whether or not to go with GM’s dealer-issued plan, make sure to factor in some of the GM protection plan limitations:
- Restriction on Parts: Repair parts must be original to your vehicle or certified by your GM dealer. Otherwise your GM coverage will not apply.
- Restriction on Approved Mechanics: Repair work must be done at an authorized GM dealership or repair shop.
- Mark-Up Costs: Carmaker-branded plans are almost always pricier than alternative extended warranty coverage options, for the sole reason that you wind up paying a premium for the brand. These alternative car coverage options are comparable in coverage and service, plus they offer additional benefits like plan flexibility and a much wider network of mechanics to choose from.
Third-Party Vehicle Service Contracts
GM’s own plan isn't the only option for GM owners looking to extend coverage on their car. There's an alternative solution for vehicle breakdown protection, in the form of what's known as a Vehicle Service Contract (VSC). A VSC is a policy from an independent, third-party insurance provider that pays for covered repairs and breakdowns, including parts, labor, and taxes, when they affect your car.
How is a Vehicle Service Contract Different from a GMEPP?
While both a VSC and dealer-issued extended warranties protect consumers against covered auto repair bills, they're still not identical in makeup. VSCs differ from dealer plans in the following ways:
- VSCs are not affiliated with GM. VSCs are offered by independent, third-party providers.
- VSCs can be purchased at any time. This is in stark contrast to most car manufacturer’s extended warranty coverage plans, which may come ample eligibility restrictions.
- VSCs offer greater contract flexibility. Whereas a GM plan may lock your service contract in for a set time period or mileage number, VSCs like those offered by Toco Warranty are pay-as-you-go and can be canceled any time.
- VSCs offer a much larger network of approved mechanics. For a GM-issued plan to apply, you may have to take your car to an authorized GM dealership. With a VSC, on the other hand, you can visit any licensed repair shop nationwide and still be eligible for extended car warranty coverage.
Simple Claims Process
24-hour roadside assistance
No Down Payment
Low monthly payments
Ability to choose from a broad national network of repair shops
Ability to cancel coverage at any time
Benefits of a Vehicle Service Contract
A VSC provider (e.g. one that handles payments, administration, claim filing) can offer better, faster service, thanks to a more streamlined and efficient operational approach. Moreover, quality VSCs will also provide a range of benefits for consumers, including:
- Affordability. Low monthly payments and $0 down.
- Contract flexibility. Pay-as-you-go protection plans that can be canceled or transferred at any time.
- Nationwide repair facilities. Unlike dealer plans, which may restrict your mechanic options, most VSC policies allow you to bring your GM vehicle to any licensed repair shop nationwide.
- Simple claims process. The entire claims process is handled in-house, including administration and payment, so you never have to get involved.
Note that extending repair and breakdown coverage is just the tip of the iceberg. VSCs like those offered by Toco Warranty also offer:
- 24-hour roadside assistance
- Trip interruption coverage
- Discounts on rental cars
- Discounts on hotel stays
At a Glance: GM Repair Costs With and Without a Vehicle Service Contract
Let's take a look at common GM vehicle repair costs with and without a Vehicle Service Contract from Toco Warranty:
|Issue Type||Uncovered Cost||Toco VSC Cost|
|Fuel Pump||$820 - $2,890||$100|
|Alternator||$465 - $1,635||$100|
|Strut Assembly||$400 - $1,515||$100|
|Car Radiator||$535 - $860||$100|
|Brake Rotors/Discs||$275 - $490||$100|
|Oxygen Sensor||$285 - $480||$100|
|Ignition Coil||$220 - $310||$100|
|Crankshaft Position Sensor||$160 - $295||$100|
|Brake Pad||$175 - $280||$100|
It's a glaring difference, especially when you factor in that 10-year repair and maintenance costs for GM vehicles can typically reach upwards of $10,000 without any sort of extended warranty coverage.
Consider a Vehicle Service Contract with Toco Warranty
If your factory warranty is about to expire or has already expired on your GM vehicle, now is the time to explore extended coverage options and protection plans.
While the General Motors Extended Protection Plan may offer a range of benefits, it limits consumers in terms of repair shop options and coverage for parts. A vehicle service contract offers the same range of coverage as a dealer plan, but with additional benefits, greater contract flexibility, and significantly more repair shop options.
To see how little extended car coverage would be for your GM from Toco Warranty, request a free quote today!
GM is not affiliated with Toco Warranty Corp. and has not endorsed Toco Warranty