Frequently Asked Questions

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Frequently Asked Questions About 5 Star

Making an informed decision is the best way to be sure that you will be completely satisfied with your purchase. Warranties can be tricky and confusing—so get the coverage you need by knowing what to ask before you buy. Get answers to common questions by consulting the following list. And remember, if you have additional questions, the fastest way to get them answered is by talking with us directly, so don’t hesitate to pick up the phone.

  • What is an extended vehicle service contract or extended auto & car warranty?
  • Most new vehicles come with a 3 year / 36,000 mile bumper-to-bumper (comprehensive) manufacturer’s warranty—guaranteeing that in the event of a mechanical malfunction or breakage of faulty part before the 3 year / 36,000 mile mark, then the manufacturer is responsible for all necessary repairs.

    After the manufacturer’s warranty expires you can purchase an extended auto warranty (also known as an extended vehicle service contract), which provides repairs for covered components during a specific period of time or a certain number of miles. Extended warranties vary greatly, all offering differing levels of protection, types of protection, cost of deductible and duration of coverage.
  • How do extended warranties work?
  • Extended warranties are service contracts that pay for parts and repairs in the event of a vehicle malfunction. If your car breaks down you can take it to any ASE certified repair facility, have your mechanic call 5-Star Warranty, and if the broken components and labor are covered by your warranty, get everything paid for by our company credit card.
  • How will I know what is covered and what isn’t?
  • Every warranty has a specific list of covered components (parts). Some warranties provide bumper-to-bumper coverage—normal wear and tear sometimes included and sometimes excluded—others only offer powertrain coverage—providing repairs and parts in the event of a major mechanical failure. It is important to read your warranty carefully before you purchase so you can understand exactly what is covered. All covered and uncovered components will be outlined carefully.

    Warranties generally cover major mechanical systems like your engine, transmission, and brake systems (excluding things like brake pads which are a part of normal maintenance). Warranties don’t generally include things like windshield wipers, lighting systems or upholstery.

    All warranties require you to complete all routine maintenance specified by the vehicle owner’s manual. Neglecting a car is a frequent cause for claim denial. So change your oil every 3,000 miles and keep accurate records and receipts for any work you have done on your vehicle. Your car will run more efficiently and our service department will thank you.
  • What makes a good warranty?
  • A good warranty is backed by one of the highest rated insurance companies, allows repairs to be made at any certified shop, and pays claims in full up front with the company credit card. Great warranties provide roadside assistance, trip interruption insurance and rental car benefits.
  • What types of auto warranties are there?
  • Powertrain warranty
    Covers the engine, transmission, and other parts of the drivetrain (What is referred to as the powertrain) only, which is defined as the 29 parts of the vehicle through which oil flows. These are the parts least likely to fail.

    Bumper to Bumper
    Covers nearly all of the mechanical systems of the vehicle, from front bumper to back bumper, except for those on the "exclusion list"— parts that are NOT covered by the extended auto warranty. It is frequently easier for a customer to see a short list of items that are not covered and know that everything else is.
    Named Component Warranty:
    Covers the major mechanical systems of the vehicle from mechanical breakdown and mechanical failure. If the part is not listed, it's not covered by the contract.

    Roadside assistance and travel reimbursement plans are typically offered as part of the extended auto warranty package. Some service contracts even offer free lodging and meals if your vehicle breaks down on a trip.
  • What assurance do I have that any claims will be paid in years to come?
  • All of our contracts are directly insured by an AM Best “Excellent” rated insurance company. This means that the insurance company must follow all state regulations and adhere to state insurance guidelines regarding financial solvency and financial stability. These insurance filings can be located through your state insurance company.
  • Where is the warranty headquarters contract honored?
  • You can take your vehicle to your dealership or any ASE certified repair facility nationwide. Additionally, your new and used car extended warranty plan is accepted at national repair facilities such as Pep Boys, Firestone, AAMCO, and All Tune and Lube as well many others.
  • How are claims paid and what is the claims process?
  • If your vehicle breaks down or is in need of repair, take it or have it towed to any ASE certified repair facility and present your service agreement to the Service Department before any repairs are begun. After the shop diagnoses the problem, they will call the claims administrator and `receive repair authorization for all covered components and labor.

    All claims are paid directly to the repair facility of your choice with a corporate credit card. You will not have to file a claim or wait for reimbursement.
  • What is a deductible and how does it work?
  • A deductible is the amount of money that you must pay out of pocket before your warranty coverage kicks in. It is a normally a fixed quantity associated with your policy. Generally speaking, the higher your deductible, the lower your monthly premium. A more extensive plan with a high monthly premium generally has a lower deductible. It depends on what plan you have selected as the best fit for your financial situation.

    For example, if you have a plan with a $200 deductible and your repairs cost $1000, then you must pay the first $200 and then your policy covers the additional $800.
  • What additional benefits are included in your service contract plan?
  • 24-hour roadside assistance, rental car benefits, trip interruption benefits and towing benefits are all included in our policies. Please refer to each policy for the specific details regarding these additional benefits as they vary from policy to policy.

    For example, if you have a plan with a $200 deductible and your repairs cost $1000, then you must pay the first $200 and then your policy covers the additional $800.
  • Is my service contract transferable?
  • Yes, for a nominal fee you can transfer your service contract to a private party or an individual. This option adds value to the resale of your vehicle.
  • When can I cancel my service contract?
  • You can cancel the service contract within 60 days (new vehicle plans) or 30 days (pre-owned vehicle plans) from the date shown on the registration page and receive a full refund if no claims have been made.

    If a claim has been made against your contract, or if the contract has been in effect more than 60 days (new vehicle plans) or 30 days (pre-owned vehicle plans), a pro-rated refund will be calculated based on the greater of the time in force or the miles driven compared to the total time or mileage of your contract term, less any applicable cancellation fee. Cancellation provisions vary by state. Please refer to the actual service contract for provisions relating to your state.

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