The Score: Auto Warranty - 1, Scamming Mechanic - 0
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.
Tiffany Ash always dreaded when she had to take her car in for the yearly state inspection. No matter where she went, or what kind of car she had, the mechanics always found problems. This year, though, she wasn't worried. She had an extended warranty for her automobile. So no need to worry about repair costs. Although that was a nice change, other things were the same as ever. Tiffany couldn't imagine that the mechanic would find anything wrong with her 2007 Honda Accord with only 44,500 miles. Besides, she though, even if they did, her car warranty would cover it. So she wasn't concerned about being ripped-off. But she should have been. According to Tiffany, "The mechanic came into the waiting room and told me that I needed a new blend air door, a new oxygen sensor, and a new master cylinder, and that it would be something like $1000 to pay for it all. I almost cried." But instead of crying, Tiffany told the mechanic to call her extended warranty company and to submit the claim. Great news, they were all covered. But because of the cost of the repairs, the auto warranty company sent an inspector to check out the claim. "As soon as the mechanic found out an inspector would be sent, he told me that there was a mistake, the prices were too high, and maybe the oxygen sensor was fine, explained Tiffany. The warranty inspector arrived and made sure everything was on the up-and-up, which, after the mechanic changed his mind and price, it was. "I used to hear people making complaints about some mechanics, and now I know why," said Tiffany. But, she said, she is glad that she has a car warranty backing her. Brokers such as AA Auto Protection specialize in offering plans that not only can help people avoid expensive repairs. But they can also help people avoid rip-offs and scams, which can be just as valuable as paying for a new transmission.
8/22/2010 10:29:35 AM
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