Frequently Asked Questions

Addressing common concerns

We’ve assembled a list of answers to commonly asked questions so that you can learn more about how VDS can help you and your dealership succeed. We would like to encourage you to contact us if you don’t find the answer you’re looking for, or if you would like to discuss a particular item in greater detail. Call us at 011.49.888.8888.888, or send us an email with your question at, and we’ll get back to you ASAP.


What should I know about Factory Warranties?

  • A “warranty is a written promise a “manufacturer” makes to stand behind the quality and workmanship of their vehicles. It usually provides repair and replacement service for a specific period time following the purchase.  In certain circumstances the manufacturer themselves may provide an “extended warranty” for an additional price.  Manufacturer extended warranties can include limitations and are often expensive.

What is the difference between Factory Warranties and Vehicle Service Contracts or Extended Warranties?
  • A “Vehicle Service Contract” (VSC) is provided by independent Insurers and Administrators providing “Extended and/or Enhanced Protection” for vehicles of multiple manufacturers. This protection can enhance and extend protection well beyond the original factory warranty terms and are sold separately.  VSC providers have designed their protection products to allow for a great deal of consumer customization. The terms “vehicle service contracts”, “extended warranties” and “extended protection” often may be used interchangeably, but have a unique usage when it comes to written contracts, depending on the actual source of the protection plan provided.

What is the Dealer’s liability in providing a customer a “Vehicle Service Contract?”

  • The Dealer has no liability in providing a customer a Vehicle Service Contract as long as the VSC sale was properly represented.

Since the cars you sell are covered by a manufacturer’s warranty; why should a customer buy an extended warranty?

  • All mechanical and electrical parts and components eventually fail over time. Just like life Insurance, the younger a car is in when it is protected, the better the rates and pricing. It always costs less to acquire extended protection on a newer vehicle than is does for the same car when it is older and the statistics suggest a customer’s vehicle will experience some type of breakdown or failure.  Buying early hedges against the future cost of parts and labor create peace of mind and improve the ownership experience.

With Interstate StarAuto coverage, can a customer really take their car anywhere for repairs?

  • So long as they are in the United States or Canada, repairs can be made by any dealer, or the licensed repair facility of your choice.

Who is responsible for repairs and claims?

  • Repairs are conducted at licensed and approved repair facilities in the US and Canada. Claims are resolved between the Administrator (Insurer), Repair Facility, and vehicle owner.

How does a Dealership collect the VSC purchase funds from the customer?

  • The customer can either pay by credit card online through the Administrator, with a certified check made out to the Administrator, through an installment plan after 10% down payment (down payment by cc or certified check), or may be included in the vehicle loan when financing ( depending on the lending institution).

How and when does the Dealership get paid for Vehicle Service Contract sales?

  • Contracts and premium payments reconciliations are processed monthly using a “cut-off-date” established by the Insurer/Administrator. Generally, Dealerships will receive its profit by bank-wire on the 20th of each (unless bank holiday or weekend), for contracts reconciled the previous month.

Are there any Dealer costs?

  • There are no costs to the Dealership, all contracts and marketing materials are supplied by Administrator.

Is it simple is it to get started?

  • Yes, very simple. First, complete a Dealer questionnaire. Second, schedule a meeting with our representative to review your sales processes and present our program.  Third, schedule training and launch dates. Finally, begin making sales and earning additional revenue.

If a customer has questions about the VSC he or she purchased, who do they call?

  • They can call the Administrator at the Customer Service  number listed on their contract or our Corporate office in the US at XXX-XXX-XXXX or our local office POC in Europe at +49 XXXX-XXXXX

How are repair claims paid?                                                                

  • When a customer brings a car in for a repair, they present their policy information to the service professional and they will make contact to arrange for a preauthorization for repairs over the phone. All that is paid is the deductable (if there is one), and everything else will be seen to; no paperwork and no need for your customer to pay first then wait for a reimbursement check.

How do deductibles work?

  • For each repair visit you only pay the deductible once; no matter how many items are repaired. Of course with a “zero deductible” plan, there are no out of pocket expenses.

What if a customer should want to cancel their StarAuto warranty before its expiration?

  • Should they decide to cancel their coverage, they are covered with a money-back guarantee. Most plans, if canceled within 30-60 days, will return a full refund. After that period, a pro-rated refund will be issued for the un-used portion of the contract.

How does the transferability feature of the Interstate StarAuto plan work?

  • A customer’s Interstate Star vehicle warranty follows the vehicle in a private transfer or sale. If there is a planned transfer in ownership, all that is required is that a small transfer fee of $50.00 within 60 days of the transfer is paid, and they are all set

Is vehicle coverage available outside the CONUS?

  • Coverage is only valid in the United States and Canada

Can anyone sign up for the “PayLink” monthly payment program for the Interstate Protection Choices?

  • Yes. Your customers automatically qualify.  Our VDS Sales Advisor can show you how this works

If a customer selects a monthly payment plan will their coverage be limited until they’ve paid in full?

  • No limitations, full coverage is available from the time the “Pay Link” program is initiated

With the monthly payment plan, can a customer pay off the some or the entire amount early and without penalty?

  • Yes, all contracts can paid-off in full at anytime without restriction

Can customers change plan coverage after making their initial purchase, and if so are there any penalty charges?

  • It depends, you will need to speak to one of our sales advisor for your specific situation

Is a customer limited in the number of cars that can be covered through this program?

  • No limitation, however model type, year and mileage limitation and/or exclusions may apply

Are new or rebuilt parts used for warranty repairs?

  • Generally new parts are used for all warranty repairs when practical, but in certain instances where the remaining life of the vehicle or fair market values does not justify high expenses, remanufactured parts can be substituted

What if the work performed is not to a customer’s satisfaction, what options do they have to resolve the situation?

  • Interstate StarAuto ensures that the cost of repairs paid directly to repairing facility. Valor Dealer Services will coordinate to ensure that the proper repairs are complete

What if a customer has a recurring mechanical problem, will reoccurrences be covered?

  • It depends. If the vehicle has been operated in a manner consistent with its design, it’s covered under the terms of your contract. If the vehicle in question has suffered repeated abuse in the hands of the owner (I.e. Damaging a motor by intentionally exceeding its normal limits)

If a customer intends to modify their car to enhance its performance can they still get warranty coverage?

  • Generally no, but if a new car dealer has installed a factory approved modification then these modifications may be covered. Our Sales Advisor can help you with your client’s particular situation.

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