An Extended Auto Warranty is Properly Called A Vehicle Protection Plan When Sold by a Third Party Provider

Two Businessmen Holding Contrasting Arrows for Bad and GoodRecent government policy changes have lowered the number of extended auto warranty scams, but buyers should still beware of deceptive advertising, high-pressure tactics, and unscrupulous policies.

A Vehicle Protection Plan or extended auto warranty can offer a lot of benefits, especially if you plan to keep to your vehicle after the original factory warranty has expired. But, finding a reputable source for extended coverage is not always easy. There are so many companies online that make wonderful promises. Distinguishing between fact and fiction can be exasperating.

You may be getting phone calls or mail notifications about renewing your “auto warranty”. The brochures can look very legitimate and professional, and the agents may sound intelligent and knowledgeable. But, do you even have a factory warranty and is it really about to expire? This is a very common tactic and should raise a red flag – unless you know that your factory warranty is really about to expire.

There have been many people who have signed up for a policy only to find that they are unable to cancel or get a refund once they realize that the agreement is not what they were expecting.

A Vehicle Protection Plan is a great investment, but there are a few things you should look for to avoid falling victim to extended auto warranty scams.

  1. Know your factory warranty. If your vehicle is still under the factory warranty or you have extended coverage of some kind, you should know the terms of the contract as well as the expiration date. This way, you will not be misled by claims that it is time to renew. Also, if your current company wants to sell you a new service contract, they will already know pertinent information such as the policy/contract number, so you should be able to use this to verify legitimacy.
  2. Be aware of high-pressure sales tactics. You should be cautious if the company offers a “limited time deal” or creates a sense of urgency by insisting that you commit right away. If they are reluctant to let you see the policy before you agree to a down payment, then deal with a different company. Most reputable companies will allow you the time to review the terms and conditions of the contract before expecting your commitment. Do not agree to make a purchase or give a down payment until you have seen in writing exactly what you are paying for. If you feel pressured or uncomfortable, deal with another company.
  3. Requests for personal information. Beware of companies that ask for personal information over the phone, such as a bank account, Social Security, driver’s license. Due to the increasing number of identity thefts, these numbers should be protected and never given out over the phone. It is usually possible to get an accurate quote by providing just your year/make/model/mileage and date of purchase, however, name and email address are also typically requested and this is reasonable. Before providing any information, you should review the website’s privacy policy. If they don’t have one posted then deal with a different company. You’re looking for an assurance that they will not sell or share your contact information with a third party. Some companies may say that they can “blacklist” your vehicle or claim that you cannot get coverage unless you immediately give the information they are requesting. These are threats designed to coerce you into making a purchase. If this occurs then deal with a different company!
  4. Unfounded claims. New government policies prohibit companies from falsely claiming affiliation with dealerships or auto manufacturers; however, they will still try this tactic. If in doubt, call the dealership or automaker to verify this information. If you cannot verify the affiliation then deal with a different company.
  5. Extreme discounts. If a company offers you a $500 or $1000 discount they will most likely insist that you ‘buy today.’ Be aware that this is just a tactic to get you to commit. This is a dishonest practice as their prices are inflated by $500 to $1000 to begin with, so my advice is to deal with another company.
  6. Extended warranty. Be advised that the only entity that can offer you an ‘extended warranty’ is the factory or a factory representative such as a dealership. All others (third parties) are required to sell a “vehicle service contract”, “vehicle protection plan” or in some states such as California, “mechanical breakdown insurance”. The plans offered by third-parties can offer more coverage for less money but you must make sure that you’re dealing with a reputable company. If the company you’re dealing with is offering you an “extended warranty” and they are not a factory representative then deal with another company.
  7. Complaints and feedback. You should always research the company before you purchase any auto service contract. Check with the Better Business Bureau to see if any complaints have been made, and read reviews or message boards to find out what other customers have experienced. Organizations like the BBB have several complaints and warnings listed, and client feedback is a great source of information. You want to look for a long history of positive and reliable service.  autopom! is Accredited with the BBB and maintains an A+ rating. Request a free, no-hassle quote from autopom!

A Vehicle Protection Plan can give you peace of mind when unexpected failures occur, but it is important that you make a wise and informed choice. Knowing how to recognize extended auto warranty scams can help you find a company that will fulfill its commitments and be there when you need them.

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Mike Godwin
Mike Godwin
20:53 12 Sep 19
Recently bought a used car from a rental car sales agency I was interested in an extended warranty but after some research I was not happy with the one offered by the agency. I contacted AOTOPOM and quickly received a quote by email and contact consultant detail. Consultant Trevor answered all my questions with great patience and did a great job. I ended up buying a policy. Everything happened with great ease.
Albert Mundy
Albert Mundy
15:14 04 Sep 19
Dacey was incredible. Her patience and customer service is out of this world. I have yet to utilize this warranty but a close friend with a premier vehicle has great things to say about them.
Christopher Morales
Christopher Morales
21:27 03 Sep 19
She did great! Very professional and patient for the sale. She did not hound me like many other place that quoted me. This is the right way to prospect a sale!
Thomas Murlless
Thomas Murlless
20:08 08 Aug 19
So far so good. I hope I will not have to use it but the initial process went smoothly. Dacy did an excellent job with the initial process.
Fuyun Ling
Fuyun Ling
21:20 05 Aug 19
Easy quoting and sign up. Good pricing. The agents are knowledgeable. Need to see how the insurance work out.
Ramon Glasgow
Ramon Glasgow
23:32 26 Jul 19
The first agent didn't have the best people's skills, but Dacey hooked me up. She's super nice and extremely personable. Appreciate her a lot! Thank You.
John T
John T
17:04 18 Jul 19
Easy, efficient and reasonably priced. Very pleased and if the plan works as was outlined, I'll be ecstatic. Hopefully, I may never need it so will give a final review in 5 years.
David Canez
David Canez
02:43 16 Jul 19
The experience I had with Trevor from autopom was fantastic. Trevor was very professional and explained in great detail my package for my vehicle. I highly recommend autopom for your vehicle warranty needs.
Ernie Gomez
Ernie Gomez
23:51 12 Jul 19
Recently signed up for protective services with autopom and Lisa was the coverage consultant helping me. She made everything very simple and easy to understand and also answered any questions I had along with following up with me via email and a scheduled phone call. Most definitely would recommend to anyone looking for great hassle free coverage.
Gerry Twomey
Gerry Twomey
21:27 28 Jun 19
Just signed up, got a great plan for a low down payment and Lisa Dennault was great, very professional. I would recommend this to anyone who has an older car and needs extra protection.
j rubin
j rubin
22:19 27 Jun 19
Super easy process. Dacey had answers to all my questions (and I had a few) and she wasn't the least bit pushy. Will 10/10 use autopom! again.
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autopom!
4.9
powered by Google
Mike Godwin
Mike Godwin
20:53 12 Sep 19
Recently bought a used car from a rental car sales agency I was interested in an extended warranty but after some research I was not happy with the one offered by the agency. I contacted AOTOPOM and quickly received a quote by email and contact consultant detail. Consultant Trevor answered all my questions with great patience and did a great job. I ended up buying a policy. Everything happened with great ease.
Albert Mundy
Albert Mundy
15:14 04 Sep 19
Dacey was incredible. Her patience and customer service is out of this world. I have yet to utilize this warranty but a close friend with a premier vehicle has great things to say about them.
Christopher Morales
Christopher Morales
21:27 03 Sep 19
She did great! Very professional and patient for the sale. She did not hound me like many other place that quoted me. This is the right way to prospect a sale!
Thomas Murlless
Thomas Murlless
20:08 08 Aug 19
So far so good. I hope I will not have to use it but the initial process went smoothly. Dacy did an excellent job with the initial process.
Fuyun Ling
Fuyun Ling
21:20 05 Aug 19
Easy quoting and sign up. Good pricing. The agents are knowledgeable. Need to see how the insurance work out.
Ramon Glasgow
Ramon Glasgow
23:32 26 Jul 19
The first agent didn't have the best people's skills, but Dacey hooked me up. She's super nice and extremely personable. Appreciate her a lot! Thank You.
John T
John T
17:04 18 Jul 19
Easy, efficient and reasonably priced. Very pleased and if the plan works as was outlined, I'll be ecstatic. Hopefully, I may never need it so will give a final review in 5 years.
David Canez
David Canez
02:43 16 Jul 19
The experience I had with Trevor from autopom was fantastic. Trevor was very professional and explained in great detail my package for my vehicle. I highly recommend autopom for your vehicle warranty needs.
Ernie Gomez
Ernie Gomez
23:51 12 Jul 19
Recently signed up for protective services with autopom and Lisa was the coverage consultant helping me. She made everything very simple and easy to understand and also answered any questions I had along with following up with me via email and a scheduled phone call. Most definitely would recommend to anyone looking for great hassle free coverage.
Gerry Twomey
Gerry Twomey
21:27 28 Jun 19
Just signed up, got a great plan for a low down payment and Lisa Dennault was great, very professional. I would recommend this to anyone who has an older car and needs extra protection.
j rubin
j rubin
22:19 27 Jun 19
Super easy process. Dacey had answers to all my questions (and I had a few) and she wasn't the least bit pushy. Will 10/10 use autopom! again.
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