Steering rack Transmission
Here are some of the items
covered in Costco’s Vehicle
Repair Protection Plan.
Costco’s Vehicle Repair Protection Plan fixes your car
By Steve Fisher
WHY IS I T that a car’s biggest repair seems to
come just after the vehicle’s manufacturer
warranty expires? Even if you have an
extended warranty, will it actually cover the
problem? And if it does cover the problem,
will the company behind the plan be financially solvent enough to deliver?
These are factors Costco considered
when it decided to make the Century
Warranty Services (CWS) Vehicle Repair
Protection Plan available to members. Today’s
vehicles are complex, digital machines; even
car keys are mini computers. This technology
can result in very expensive repairs. Here’s
how this plan can help you.
What kind of coverage is offered?
CWS’s Vehicle Repair Protection Plan
covers virtually all mechanical and electronic
components, and is available for vehicles up
to 10 years old with 10,000 to 75,000 miles.
The plan pays for covered repairs entirely—
including parts and labor—except for the
deductible, but a wide range of deductibles is
available. Of course, basic maintenance, such
as oil changes, brakes and belts, is not covered. Some exotic vehicles may not be eligible.
What other benefits are included?
You also receive:
; 24-hour roadside assistance
; Rental car coverage
; Travel coverage
; Wear-and-tear coverage
; Vehicles can be repaired by a new car
dealer or any licensed shop in the U.S. or
Who is Century Warranty Services?
With nearly 30 years of combined experience, and more than 8 million plans in
force, CWS and its affiliates have a Better
Business Bureau rating of A+. Thanks to parent company JM Family Enterprises Inc.,
ranked by Forbes magazine as the 22nd-larg-
est privately held company in the U.S., plans
are solidly backed.
“Costco went through a very rigorous
What do others say?
approach to determine who they would
want to endorse,” says Rick Bale, managing
director of CWS. “There are a lot of fly-by-
night companies out there, and even the
ones that have good products are not neces-
sarily going to be there later on if they
haven’t structured their company and their
“A company is making a promise to pay
for repair claims way down the road, and
Costco wouldn’t want to be aligned with
somebody who’s not going to be there,”
assures Jon Zweig, Costco’s senior director of
business, automotive and financial services.
“We fully believe we have created something
very special for our members.”
Like many people, Dallas Costco member Hugues J. De La Vergne was leery of vehicle repair plans. “I had a bad taste in my
mouth from comments about other vehicle
protection plans,” he tells The Connection in a
“What I found from the beginning is it
really was something different,” he says. “The
people I spoke with were very knowledgeable.
They weren’t cheesy salespeople and it wasn’t
a hard sell. It was just an informative process
and, after speaking with them, I was sold on
De La Vergne, a principal research ana-
lyst for Gartner, a technology research and
advisory company, had considered buying a
ne w car to replace his 2007 Audi A4 Cabriolet.
“We looked at the cost of a new vehicle
versus keeping a car that we liked, and this
mitigates some of the downside risk associ-
ated with keeping a car when it reaches a cer-
tain age,” he explains. “When you look at
depreciation on a new car and then you take
into account keeping an existing car, along
with a [CWS protection plan], it makes a lot
of economic sense.”
Costco members can save up to $500.*
To learn more, call 1-877-852-1940 or
visit Costco.com and search “VRP22.” C
The Vehicle Protection Plan (VPP) is a vehicle service
contract issued by Century Warranty Services (CWS),
8019 Bayberry Road, Jacksonville, FL 32206, License
#60114, except in CA, KY and MD, where VPP is
mechanical-breakdown insurance issued by Courtesy
Insurance Company, NAIC #26492. Certain eligibility
restrictions and exclusions apply. Program availability
varies by state. VPP is sold by Costco Auto Program
except in CA, KY and MD, where VPP is sold by Affinity
Auto Insurance Agency in conjunction with Costco
* Based on a September 2011 comparison of Costco
members’ actual savings compared to rates offered by
a national provider of vehicle service plans. Rates vary
by make, model, model year, mileage, deductible and
length of plan.