Not All Extended Auto Warranties Are Created Equal
As I was doing research on area car dealerships for a friend, I came across some very interesting information. It seems that a car dealership that had been selling extended auto warranties for a certain auto warranty company was no longer accepting claims from that company and the company wasn’t paying as it had promised to. What does this mean? It means that the people who had paid good money for those extended auto warranties are now out of luck and are stuck with big repair bills if something goes wrong with the cars they thought were covered.
If you’re offered one of the many extended auto warranties by a car dealership, don’t assume it’s a good company just because the dealership is trying to push the warranty on you. The dealership’s goal is to make money, and like everything else a car dealer offers for sale, they make money on each of the extended auto warranties they sell. Are your best interests in mind? They may say they are, but what they’re really focused on is the bottom line.
If you really are interested in extended auto warranties, forego the high-pressure salesroom pitch and get a policy on your own terms. Research companies thoroughly, check their BBB records and see if there has been any litigation filed against them. If the company offering extended auto warranties has a spotless reputation, make sure the company has been established for at least ten years and get everything in writing before you sign a paper or send in a dime.
While it may take more time and a bit more effort to research the right auto warranty than it would take to just grab the policy offered by the auto dealership, the headaches you can avoid by taking the initiative to get the policy yourself can more than pay off for any extra effort you had to exert.