Getting an extended vehicle warranty is usually a good thing!  Unless you get scammed, that is.  Sadly, the extended car warranty industry has been plagued by many scams, causing consumers to be skeptical of even good companies.  Luckily, many trustworthy and credible extended auto warranty companies are out there.  This article will give tips on avoiding extended car warranty scams and picking out quality companies.

Tips for Avoiding Car Warranty Scams

Let’s start with some tips for avoiding some common car warranty scams:

  1. Don’t buy before investigating the company and seeing a copy of the extended vehicle warranty contract for yourself.  Many companies use hard sales tactics with telemarketing and/or direct mail.  But don’t buy a plan from these companies unless you have checked to see that they’re legitimate with a good reputation.  
  2. If a telemarketer asks for personal information and credit card information before you have even seen a contract copy, hang up the phone! 
  3. If a telemarketer says they can send a copy of the contract after a down payment is processed, don’t do it!
  4. Check for truthfulness when a company says they’re affiliated with a dealership or manufacturer.  Call the dealership or manufacturer to confirm the affiliation.  If there is no affiliation, do not do business with that company.
  5. Research the extended auto warranty companies you’re considering!  Check out the Better Business Bureau (BBB), online reviews, and the manufacturer or company that backs the plan to verify the company’s credibility.
  6. Know the difference between the company that is selling the plan and the company that will be administering your contract.  The Administrator is the one that will be approving or denying your claims.  Check both companies’ reputations and ensure a major insurance company backs the contract you purchase.  If not, move on.
  7. If you reside in California, make sure the seller and Administrator are licensed in California.  The State of California requires third parties selling vehicle protection plans to be licensed insurance agents, and the plans sold are insurance policies.  Make sure the agent’s license number appears in the quote or correspondence.  If not, move on.
  8. Finally, please know that although commonly referred to as an “extended car warranty,” plans sold by third parties, and most dealerships are not a warranty.  These plans are more accurately described as a vehicle protection plan or service contract, except in California, where they are called “mechanical breakdown insurance.”

Find at least a few trustworthy companies and then ask for quotes.  We recommend getting multiple quotes to find a plan that fits your needs and budget. 

How autopom!  Can Help

autopom!  welcomes the opportunity to answer your questions and provide you with a free quote.  With autopom!  you don’t need to worry.  autopom!  has offered vehicle protection plans for over a decade and has an excellent and trustworthy reputation in the industry.  We are proud to have an A+ rating with the BBB and to have been recognized by many extended protection review sites.  Check out the sites below to find out what consumers and experts say about us! 

Although autopom! ’s vehicle protection plans let you take your vehicle almost anywhere for repairs, to make it convenient for you and to ensure you receive the best possible service, we recommend RepairPal.com – our preferred network of certified shops.

These shops are trained on how to work with your extended warranty and are ready to assist you.  Through our partnership with RepairPal, we have ensured that it is really easy for you to take advantage of the coverage we offer.  Some customers may even be eligible to have their $100 deductible waived when using one of our certified shops (depending on the Administrator of your contract).

Another reason to choose autopom!  is our competitive pricing.  Our plans could pay for themselves with only one large repair bill.  Even better, when you get a vehicle protection plan from autopom!  you also get roadside assistance, rental vehicle assistance, nationwide breakdown coverage, and more!