Automobiles don’t last forever. Sometimes they break down without warning, leaving you wondering whether you should have answered that robocall about purchasing an extended car warranty in California.
The answer to that question is always a resounding “No!” Instead, learn how mechanical breakdown insurance, regulated by the California Department of Insurance (CDI), offers you true peace of mind when it comes to unexpected auto repairs.
What Is an Extended Car Warranty in California?
An extended vehicle warranty isn’t just one thing: it’s two distinct coverage classes. First, mechanical breakdown insurance (MBI) is purchased from a third-party, such as autopom!. Alternatively, your auto dealer may sell you an extended vehicle warranty directly from the manufacturer. When the auto dealer sells a warranty from a third-party merchant, it is a vehicle service contract (VSC).
The most crucial distinction is that MBIs in California are closely regulated by the CDI. This regulation means that pricing and exclusions are consistent and have met the established rules and statutes. When you purchase an MBI, you can rest assured that you have excellent vehicle protection and that you’re getting the best value for your money.
Looking for an MBI that provides you with automotive peace of mind? Here at autopom!, we’ll help you find a regulated MBI. Contact us to learn more and request a free quote.
What Are the Specific Rules for Mechanical Breakdown Insurance in California?
Warranty laws regulate who can sell an extended car warranty in California, what the warranty contract includes, and the names of extended warranties. For instance, the CDI regulates the prices MBI vendors can charge for their products, unlike VSC providers. The law permits car dealers to make a profit on VSCs, so they can charge you as they see fit.
Legally speaking, you should only be able to purchase a VSC from a car dealer with a license from the California DMV. Thus, while you can buy your MBI legally on the internet, a VSC provider selling their products online is committing a felony.
Since MBIs are actual insurance policies sold by insurance companies and agents, they’re subject to the same regulations as other insurance products in California. VSCs, on the other hand, require a “backup insurance company” in cases where the provider can’t or won’t pay the claim. The lack of a backup insurance company may indicate that the VSC is operating illegally.
How Do I Obtain the Right Extended Car Warranty in California?
California’s rules regarding extended warranties are some of the strictest in the country, and with good reason. The regulations are for your protection from predatory agencies (and robocalling scam artists!). While there are restrictions on which extended car warranty in California you can purchase, autopom! will direct you to mechanical breakdown insurance approved by the CDI.
We’re not the ones robocalling you about your extended car warranty in California! Instead, we’re helping you obtain authentic MBI that meets the legal standards in California and fits into your budget. Here at autopom!, your peace of mind about unplanned auto repairs is the foundation for our business.