Getting a vehicle protection plan may be a good idea if you intend to keep your car for over three years or if you buy a used car. There are various factors that go into determining whether a vehicle protection plan is right for you, such as the age and mileage of your vehicle, original warranty, miles covered annually, and your budget. Ally is one of the trusted names and providers of automotive financing in the U.S. Read on to find out more about an Ally car warranty and how you can get their vehicle protection plans.
Ally Company Overview
Ally Bank has been helping car dealers finance and maintain their vehicles since the 1920s. The company offers a range of financial services, which include investing, home loans, vehicle leasing, corporate financing, and banking. Drivers can also claim three extended warranty plans as well as roadside assistance and reimbursements.
Car Warranty Basics
Warranties give you extra protection from car troubles, such as mechanical problems or breakdowns. You can avail of different warranties that cover specific parts of your vehicle. Here are some types of car warranties:
- Bumper-to-bumper warranty: These warranties are available on new vehicles and provide extensive protection from manufacturer’s defects or mechanical problems for several years after purchase.
- Powertrain warranty: These warranties cover components, such as the engine, transfer case, transmission, and driveline. Standard powertrain warranties often cover five years or 50,000 miles.
- Dealership warranty: Dealership warranties cover vehicles purchased from a particular dealership, with each dealership covering different components. In most contracts, there are specific details about coverage and repairs.
- Extended warranty: An extended warranty covers a vehicle after the manufacturer’s warranty expires. It’s important to note that each company will offer a different type of extended warranty, and certain vehicles may not be covered.
What Is a Vehicle Protection Plan?
Vehicle protection plans, also known as vehicle service contracts, cover repairs and maintenance services after your warranty ends. They range from bumper-to-bumper plans to powertrain warranties. Dealerships or third parties offer these plans at an extra cost. Depending on the plan, it may be possible to combine it with the limited manufacturer warranty as well.
It usually covers new cars with a three-year or 36,500-mile warranty. If you’re buying a used vehicle, check if it comes with warranty coverage. Typically, a used vehicle has a very short warranty since the original factory warranty would have long expired. Extended vehicle protection plans can be beneficial to drivers in this situation.
Benefits of a vehicle protection plan
Many vehicle protection plans provide uninterrupted coverage even after the manufacturer’s warranty expires. Third-party extended warranty plans can also provide added benefits, including:
- Many VPPs offer travel interruption coverage, rental car assistance, and roadside assistance.
- VPPs offer protection against hefty repairs.
- You can get your choice of the repair shop.
- Most of VPPs offer a higher mileage limit than a factory warranty.
- Some plans are transferrable, where you can transfer your plan to your new car after selling your old one.
How Much Is the Deductible?
Ally offers five deductible options: $0, $50, $100, and $200. A $100 disappearing deductible option is also available at certain Ally dealerships. Some luxury vehicles are eligible for a $500 deductible. You can ask about the deductible for your Ally extended warranty plan if you decide to pursue a contract with your dealer.
Ally Protection Plans
Ally’s vehicle protection plans, also called Ally Premier Protection, cover your brand-new or eligible used vehicle for up to 12 years or 150,000 miles. Ally caps the coverage at 200,000 miles. There are four Ally Premier Protection plans available, each with a deductible between $50 and $200. Each of the four plans has a different price depending on the vehicle’s age, make, model, and mileage and is available through dealers affiliated with Ally. Each plan also features roadside assistance perks like flat tire change service, gas delivery, and battery jump service. The plans include:
Basic Guard
This plan provides essential coverage for critical powertrain parts, such as the engine, transmission, fuel delivery components, and wheel drive components. There is a cap of approximately 175,000 miles on coverage in this plan. Eligible vehicles include the ones that are up to 12 years old or have covered 120,000 miles.
Value Guard
This plan covers over 2,900 components that include everything covered in the Basic Guard, as well as additional parts, such as climate control components, suspension, electrical components, steering components, and braking components. Value Guard is ideal for drivers with older vehicles who want comprehensive coverage.
Major Guard
It’s a comprehensive plan that covers 7,500 components of major vehicle systems, including engines, transmissions, transfer cases, front and rear wheel drive, fuel delivery, heating, air conditioning, suspension, electrical, steering, and braking systems. There’s a cap of approximately 125,000 miles on coverage. Eligible vehicles include the ones that are up to 10 years old or have covered 100,000 miles.
Feature Guard
This plan comprises coverage of over 300 high-tech components. This includes electronic climate control, cooling seats, lane departure warning system, airbag systems, and crash sensors. Your vehicle’s display, sound system and Wi-Fi are also covered under this plan.
Exclusions to Ally Extended Warranties
Ally extended warranties cover a variety of vehicle components, but some don’t cover certain items. Among the exclusions are:
- Cosmetic damage
- Regular maintenance services
- Wear items like hoses and brake pads
- Damage from lack of maintenance or misuse
- Damage from accidents or the environment
- Normal wear and tear
- Alterations and aftermarket parts
- Pre-existing conditions
The cost of mechanical repairs can run as high as thousands of dollars. Getting a vehicle protection plan can help you save up on expensive repairs and hassle. Contact Ally at 1-800-631-5590 if you have any questions about what coverage plan may suit your needs.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
