GM Protection Plan
About Protection Plans
This page provides valuable information about vehicle service contracts. Scroll down the page or click on one of the links below to go to a specific topic.
What are vehicle service contracts?
Vehicle service contracts are known by several names including mechanical service agreements, extended service contracts and extended warranties. These products were developed in response to consumer needs for mechanical breakdown coverage and ancillary services after the expiration of the manufacturer's base warranty.
A vehicle service contract pays the cost of covered vehicle repairs.
Do I need a vehicle service contract?
Most likely you'll own or lease your vehicle beyond the manufacturer's base warranty. Unexpected repair costs can be costly, not to mention the difficulty of being without your vehicle. GM vehicle service contracts can reduce the hassle and inconvenience of a breakdown or repair by providing:
- Coverage of components against failure, even if it results from Normal Wear.
- Roadside Assistance (Total 'Plus'), offers towing service and lock-out service.
- Road Service Allowance (Custom and Powertrain), towing and road service with a fixed limit.
- Alternate transportation or rental when the vehicle is tied up for repairs that require at least two (2) hours of repair time.
- Quality repairs by a GM dealer without excessive paperwork and unanticipated expense.
Cost and Convenience
With the technology used in today's cars, repair costs have risen and will probably continue to do so. One major out-of-warranty repair can exceed the cost of buying a GM Protection Plan contract.
Not only will the GM Protection Plan minimize or even eliminate out-of-pocket expenses for covered repairs, your GM dealer will handle the claim, so you have no paperwork.
GM Protection Plan provides customers with financial security against unanticipated vehicle repair expenses. Depending on the coverage, additional benefits may include:
- Alternate transportation or rental during the repair.
- Roadside assistance or towing.
- Convenient service at the largest repair network in North America.
- To learn more about how a GM Protection Plan endorsed by General Motors can give you peace of mind for the road ahead, click here.
Why is the company offering the contract important?
Regardless of the type of coverage selected, the company behind the plan is very important. A service contract is a promise to pay, in the future, for covered repairs and services. That contract is only as good as the company that backs it.
When you buy a vehicle service contract, you transfer the risk of future repair costs to a company, trusting them to pay your covered repairs sometime in the future. The company must be in business for the long haul, well into the future. The GM Protection Plan is owned by General Motors with more than 30 years experience serving Canadian GM customers. That's strength and stability.
About the Contract
A vehicle service contract has several parts to consider when making the decision to buy and when comparing competitive plans. These include:
- Limits of Coverage
- Roadside Assistance
- Time and Kilometres
- Cancellation Policy
- Financial Strength and Rating
- Tips for Shopping Smart
Limits of Coverage
The extent of the repair services coverage depends on the vehicle service contract:
- Limited coverage may include a few major assemblies;
- Comprehensive coverage protects virtually all mechanical, electrical and computer components;
- Services may include limited towing, while comprehensive or premium coverage will include full roadside assistance;
- Rental coverage will have varying dollar limits or days of coverage.
Contracts are offered with two deductible choices. The deductible may be zero ($0), meaning that nothing is owed on a covered expense, or as high as $100 for the out-of-pocket amount paid by the customer. Deductibles apply per individual repair or per claim.
Many vehicle service contracts offer rental or alternate transportation reimbursement. Rental conditions and benefits usually vary according to:
- Qualifying repair time;
- Number of days of rental;
- Dollars paid for rental (daily).
Roadside Assistance provisions include more services than simply towing a disabled vehicle. Additional benefits may include:
- Emergency lock-out service.
- Fuel service.
- Battery jump-start.
- Flat tire change.
- Toll-free roadside assistance hotline.
Time and Kilometres
Vehicle service contracts cover a specific amount of time and kilometres. Generally, a customer will be able to select from a number of time and kilometres options. The time is the "term" and is referred to in months or years. The term and kilometres of coverage is calculated from the in service date and zero (0) kilometres for GMPP new vehicles. The contract will be in effect until either time or kilometres are reached first.
Cancellation and Termination Policy
In some cases, there is a "test drive" period during which the customer may cancel the contract and receive a full refund (less $ 100 administrative fee plus GST/HST and any applicable provincial tax) as long as a claim has not been filed. The GM Protection Plan has a 60-day "test drive" period. This is one of the most consumer-friendly policies in the industry.
After the initial 60-day period, you may request a termination of the GM Protection Plan at any time during the Plan term for any reason, and receive a pro-rated portion of the Plan purchase price less an administration fee ($100 plus GST/HST and any applicable provincial tax).
Some company plans are non-cancellable. The GM Protection Plan can be cancelled or be terminated. However, when the plan chosen is part of a sales promotion (provided at no additional charge to you), no refund will be paid to the plan holder.
The company backing the plan is very important. It is the entity you have contracted with to pay repair claims and services. If the company is unreliable or goes out of business, so goes the protection you thought you purchased. GM Protection Plan is a General Motors of Canada product. This means any GM Protection Plan you purchase is completely secure...all backed by more than 30 years of experience serving the Canadian GM family of satisfied customers. In addition, General Motors of Canada Limited has insured its Protection Plan obligations with Motors Insurance Corporation, thus providing even greater security to its customers.
Tips for Shopping Smart
Buying a vehicle service contract is an important decision and a critical investment. Here are some tips to help you shop smart:
- It's important to know who is backing your contract. Ask yourself and your dealer these questions
- Is it a genuine GM Protection Plan? GM Protection Plans are the only extended service plan provided by General Motors of Canada.
- How long has the company been in business? GM is in operation since 1908 and the GM Protection Plan has been offered for over 30 years in Canada.
Make certain the vehicle service contract clearly states:
- - Conditions
- - Exceptions
- - Length of Coverage (Time and Kilometres)
- - Deductibles
- - Coverage
- - Cancellation & Transfer Policy
Ask to see a sample of the contract and review it carefully.
Does the contract cover Normal Wear as well as mechanical failure and what is the difference?
Some vehicle service contracts pay for failures due to defects only. Failures due to both defects and Normal Wear are covered by the GM Protection Plan, provided the repairs are not specifically excluded in the contract coverage you selected.
- Some components are more likely to wear out rather than break and may not be covered by other mechanical service contract programs:
- Breakdown due to mechanical failure occurs when a component fails due to "defects in materials or workmanship."
- Normal Wear occurs when a component breaks down and/or fails to perform in normal service.
- Will you be charged just one deductible for each repair visit?
- Some programs may charge a deductible for each component that needs a repair, even if it is in the same repair visit. The GM Protection Plan does not.
Where can you get your vehicle repaired?
- There is the largest repair network in North America ready to work for you.
Are the repair locations convenient and are the designated repair centers reliable?
- With the largest repair network in North America, there's one nearby. And all the dealers are staffed with GM-certified technicians.
Do you have to pay for repairs and be reimbursed or does the repair facility charge the company?
- With the GM Protection Plan, your GM dealer manages the paperwork and the claim payment.
Is authorization required?
- With the GM Protection Plan, the GM dealer of your choice manages the paperwork and claims process for you and will obtained authorization whenever necessary .
How long will you have to wait to see if your repair is covered by the contract?
- With the GM Protection Plan, most claims are approved immediately upon request.