Vehicle Protection Product Warrantors

Deregulation of Vehicle Protection Product Warrantors

Effective September 1, 2017 companies that sell vehicle protection plans in Texas are no longer required to obtain authorization from the state to do so. In 2017, the Texas Legislature passed Senate Bill 2065 to deregulate the Vehicle Protection Product Regulatory Act.

Justification Adoption for Repeal of Administrative Rules

The Texas Commission of Licensing and Regulation adopted the repeal of existing rules regarding the Vehicle Protection Product Warrantors program (16 Texas Administrative Code, Chapter 71, §§71.1, 71.10, 71.20, 71.22, 71.70, 71.80 and 71.90).

The adoption justification may be viewed on TDLR’s web site.

Frequently Asked Questions

General Program Questions

1. What is a vehicle protection product (VPP)?

A vehicle protection product is:

  • a product or system that comes with a written warranty and that is installed or applied to a vehicle
  • designed to prevent loss of or damage to a vehicle from a specific cause, and
  • under which a warrantor is required to pay for loss or damage resulting from the failure of the product to perform as represented in the warranty

2. Who is a “vehicle protection product warrantor” or “warrantor”?

A “vehicle protection product warrantor” or “warrantor” is a person, company, or entity that is contractually obligated to the vehicle protection product purchaser under the terms of the warranty.

3. What law governs vehicle protection products?

Vehicle protection products and vehicle protection product warrantors are governed by the Deceptive Trade Practices-Consumer Protection Act (DTPA). No licensing or registration requirements exist under the DTPA, but DTPA contains other provisions affecting vehicle protection products and vehicle protection product warrantors. More information about consumer protection is available on the Attorney General’s website.

Licensing and Authority Questions

1. Does a VPP warrantor have to register?

A VPP warrantor is not required to register with TDLR.

2. I bought a vehicle protection product warranty before September 1, 2017. Is my warranty still valid?

Yes, your VPP warranty is still valid. Changes to statute made by Senate Bill 2065 (85th Legislature, Regular Session, 2015) do not affect the validity or terms of a vehicle protection product warranty that was issued or renewed before September 1, 2017.