Cheap Car Insurance

A lot of auto warranty companies have been in the news as of late  , but  the headlines aren’t good ..

Over the past  several  years these companies expanded  from just a few to well over a hundred .  That is  usually  be the sign of a steadily  rising  market, but with car warrantys, that wasn’t what was happening     .  

A great deal of these companies were operating  with methods  that were border-line  criminal  .

Most of the plans  that were being sold usually  covered very little .   But  , the companies were aware  that no one would buy the plans  if the consumers  were aware of this .  So what they did was lie about  what was covered and what wasn’t  .   The customers thought  they were buying  bumper to bumper coverage, just like the original coverage    .   But  they were only receiving    certain parts of the powertrain  covered instead.   

A lot of the companies  were selling “product warranties.”   Product warranties are  really just  a bottle of oil that comes with a guarantee stating that if you use the product  , you are guaranteed not to have any break downs  . Basically , it’s a few  thousand dollar bottle of oil  .  And the worst thing is  , that once the customer  opened the bottle, there was no way to ever get  refunded  .  So it was several thousand dollars that you could never get back .

Others were portraying themselves as the manufacturers.  A lot of companies would pretend that they worked directly with Ford , Hyundai  , Lexus  , or whatever company build the automobile  that the customer owned.   Others  would even go so far as to use the manufacturer’s logo on their mail pieces .   This is absolutely illegal  .

The good thing  is that the Attorney General has stepped in and forced most of these companies out of business.  So most of the companies that are still selling extended any type of used vehicle warranty are legitimate companies, but you still need to be careful.

If you are interested in purchasing used car warranties, never do business with any company that sells product warranties, portrays themselves as the manufacturer, or uses high pressure sales tactics.