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 over the years, causing consumers to be skeptical of even good companies. Luckily, there are many trustworthy and credible extended auto warranty companies out there. This article will give you some tips on how to avoid extended car warranty scams and pick out the 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 starts asking for personal information and/or credit card information before you have even seen a copy of the contract, 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! Be sure to check out the Better Business Bureau (BBB), online reviews, and the manufacturer or company that backs the plan to verify the credibility of the company.
  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 the reputation on both companies and make sure the contract you purchase is backed by a major insurance company. 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 that third-parties selling vehicle protection plans be licensed insurance agents and the plans are actually 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 vehicle 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 so that you can 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 well 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 have to say about us! 

“With so many vehicle service contracts, Autopom is a service with plans and coverage to fit most vehicles, even if the car is old. The quoting process was excellent, and the sales reps weren’t aggressive and pushy, but helpful. If you’re looking for peace of mind, Autopom is a great option.”

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 get also get roadside assistance, rental vehicle assistance, nationwide breakdown coverage, and more!