Avoiding Auto Warranty Scams and Rip-offs
 Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a “warranty” as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.
With some many car warranty companies out there, who can you trust? No one wants to be a victim of a scam or a rip-off, or to have reason to make a complaint. With any high-ticket investment, what a customer spends in time can help save more time later, and money now.
Scam companies that pass themselves off as auto warranty companies can be distinguished by several give-aways. First, they use high-pressure sales tactics. Second, they don't permit customers to view their contracts prior to enrollment. Third, they don't have a very long business history. Although not every company that fits this description is a scam or a rip-off waiting to happen, these items should be considered red flags.
When considering an extended auto warranty for your automobile, there is no need to settle, or to set yourself up to have to make complaints. Select a company which consults with you about your needs, rather than tells them to you. Make sure that you're able to review the extended warranty contract prior to providing payment. Confirm that the car warranty company is backed by an independent insurance company, to ensure financial strength in the future.
Brokers of quality car warranties like AA Auto Protection offer plans from reputable administrators, on practically every make and model, and have their available contracts posted online. Viewing actual contracts, asking questions, and taking notes, will all help you turn the auto warranty jungle into a scam- and rip-off-free manicured lawn.
8/22/2010 10:32:45 AM
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