Vehicle Service Contracts
A Vehicle Service Contract (what most people call an extended warranty) pays for covered mechanical repairs after your purchase. We offer four coverage levels, from a listed-component plan built around the engine and drivetrain up to full exclusionary protection. Administered by DOWC.
What a Service Contract Actually Is
A factory warranty comes with the car and is paid for by the manufacturer. A Vehicle Service Contract is something you buy separately, and it takes over where the factory coverage ends, or covers a vehicle that never had any left.
It covers mechanical breakdown, not wear and maintenance. A part that fails is covered. Brake pads that wear out, oil changes, tires, and cosmetic damage are not. Coverage runs for a set number of months and miles, whichever comes first, and you pay a deductible on each covered repair.
The Four Coverage Levels
Levels 1 through 3 are listed-component plans: the contract names the parts it covers, and each level includes everything in the level below it plus more. Level 4 works the opposite way round: it covers everything except a defined list of exclusions.
Core Mechanical
Built around the engine and drivetrain. Covers the cylinder block and internally lubricated parts (crankshaft, bearings, pistons, camshaft, timing chain, oil pump) along with the transmission and drive axle assemblies.
The entry point, and the plan you receive by default if no other level is selected.
Everything in Level 1, Plus
Adds further listed components including the fuel tank and lines, fuel injectors, radiator and cooling fan, struts, heater and air conditioning blower motor, heater core, and related parts.
A meaningful step up for a vehicle you're keeping past the easy years.
Everything in Levels 1 & 2, Plus
Adds enhanced electrical coverage (keyless entry, instrument gauges, compass, and onboard command systems), the components that get more numerous and more expensive with every model year.
Exclusionary
The top tier, and structurally different. Rather than listing what's covered, it covers any breakdown of your vehicle except the items named in the contract's exclusions section.
This is what people mean by "factory-type" coverage. If you want the fewest arguments at claim time, this is the one. A short exclusions list is easier to check than a long inclusions list.
Why Isn't It Cheaper?
Almost everyone arrives at this conversation having seen a mailer or taken a robocall offering "bumper to bumper" coverage for around $1,200. It's a fair question why ours costs more, and the answer is that those are not the same product.
Cheap Usually Means Listed-Component
A low price generally buys a short list of covered parts and a high deductible. It isn't dishonest, but read what's on the list, because the failure you're actually worried about may not be.
Exclusionary Is a Different Thing Entirely
Covering everything except a defined exclusions list costs more than covering a named set of parts, because it takes on far more risk. That difference is most of the price gap.
One Repair Can Exceed the Contract
A transmission replacement runs into the thousands. So does a modern engine. The contract is priced against those outcomes, not against an alternator.
Price Follows the Vehicle's Risk
A European luxury SUV and a mid-size sedan are not the same bet. Parts cost, labor hours, and failure rates all feed the price, which is why a quote has to be run against your specific vehicle.
A Rough Guide to Cost
There's no rate table we can publish, because pricing depends on the vehicle's year, make, model, and mileage as well as the level you choose. But as a rule of thumb, full exclusionary coverage tends to land somewhere around 8–12% of the vehicle's sale price.
Treat that as a way to calibrate expectations rather than a quote. It moves with the vehicle, and unusual or exotic models can fall well outside it in either direction. Listed-component coverage costs considerably less.
Terms Worth Knowing Before You Sign
- Rental reimbursement
- If a covered repair holds your vehicle for eight hours or more, rental or rideshare is reimbursed up to $50 per day, capped at the lesser of $1,500 or 30 days.
- Deductible
- Applies per covered repair. The amount is set on your contract.
- Limit per repair
- The most payable on any one repair is the lesser of the repair cost or the vehicle's actual cash value immediately before the breakdown, as determined by Kelley Blue Book or J.D. Power.
- Transfer
- Transferable once, to a private buyer, within 30 days of the sale. A $100 transfer fee applies, or less where state law caps it. It cannot be moved to a different vehicle.
- Cancellation
- Cancel within 30 days for a full refund. After that, refunds are prorated on unused months or miles, less any claims paid, with a $50 cancellation fee subject to your state's maximum.
- If the administrator doesn't pay
- Performance under the contract is backed by an insurance policy. If a valid claim isn't paid within 60 days of proof of loss, you may file directly against that insurer. The insurer is named in your contract.
Where Your Car Gets Fixed
We sold you the car, and we can be the ones who repair it. Frankman runs a full service center and body shop on site, so a covered repair doesn't mean handing your vehicle to a shop that has never seen it.
Your contract may include a provision requiring you to return to us for breakdowns that happen within a set distance of the dealership. If you're travelling or you've moved, the contract covers repairs elsewhere. Call the administrator first and they'll direct you.
The rule that matters everywhere: get authorization before any work starts. A repair you've already paid for is hard to get covered afterward.
How a Claim Works
Stop driving if continuing would worsen the damage. You're responsible for preventing further damage after a breakdown.
Bring the vehicle to us, or to an approved repair facility. The shop diagnoses the failure and submits it.
The administrator authorizes the repair before work begins. Claims go to DOWC at 1-888-317-1550.
You pay your deductible. The administrator covers the authorized balance under the contract's terms.
Vehicle Service Contract FAQs
Get a Real Number on Your Vehicle
Tell us which vehicle you're considering and we'll price each level against it, then tell you which one we'd actually recommend and why.
This page is a summary of available coverage and is not a contract. Coverage, terms, conditions, exclusions, limits, deductible, and eligibility are governed solely by the service contract itself, which you will receive and may review before purchase. Component examples are illustrative and not a complete list of covered parts. Pricing figures are examples for scale only, are not quotes or offers, and do not reflect any specific vehicle. Coverage is optional and is not required to obtain financing; financing the contract rather than paying up front will increase your amount financed and monthly payment. Obligor and administrator may vary by state. Not all coverage is available in all areas. Frankman Motor Company, 26874 SD Highway 11, Sioux Falls, SD 57108.