The ins and outs of avoiding auto warranty insurance scams

Category: Auto 57

Auto warranty insurance scams are very much prevalent and a matter of concern for car owners. It is only natural that car owners would like to keep their cars under proper care for repair and maintenance for which car warranty insurance is the only answer. There are hundreds of companies that offer auto warranty car insurance and one might think it to be quite easy to fix up one when needed. But the reality is that the majority of these companies, especially the ones that engage in unsolicited sales techniques like forced phone calls which may be pre-recorded or auto dialed, direct e mails soliciting business and television commercials are the most suspected lot. They create a sense of false urgency to pursue the warranty insurance. This lays the trap for the uniformed customer who might step into it, unaware of the consequences.

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What can go wrong?

Buying auto warranty insurance from an unscrupulous company can become a nightmare as at the end you might be left with high repair bills for settlement. The money that you had paid to buy the insurance and was supposed to take care of all car repairs simply goes waste. There is absolutely no coverage offered as it would turn out later. This does not mean that you would be dealing with scamsters only when buying auto warranty insurance, but that they outnumber the genuine auto insurance companies is a fact and you will have to act with caution.

Different relationship

Auto warranty insurance is not offered by manufacturers but other companies that are in no way related to the vehicle. The nature of the warranty is completely different from the manufacturer’s warranty that is carried out by certified factory trained engineers and technicians using original spare parts. There is huge gap in the qualitative aspect of the service that is provided during the extended warranty period. The reimbursement process can also be a bottleneck if a company does not agree to cover a part of the cost of repair when you take the car to the dealership.

Keep your eyes and ears open

Exercise caution in choosing a genuine auto insurance company and the best thing is to hang on to the manufacturer’s extended warranty as long as possible. But since this might not always be possible take guarded action in picking the right auto insurance company.

  • Discount unsolicited sales calls – If you find too many callers interested to offer auto warranty insurance, you should simply not respond to it. Instead, look for companies that have some credible links or reference that you can fall back upon.
  • Research the company – Know in every detail possible about the company that you have in mind. The internet and some references can come handy to support your research.
  • Pay attention to exclusion – Know your liability by understanding what are excluded from the coverage so that you are not caught unaware at a later stage.

Shopping and buying with care is the only way to avoid auto warranty insurance scams.

 

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