Before we proceed to discuss how we can protect ourselves from auto warranty scams, just a note to tell you that not all auto warranty schemes are scams.
There are number of trustworthy, auto warranty companies and thousands of people have been saving a lot of money by purchasing extended warranties from such companies. However, unfortunately, like in all the other industries, not all auto warranty companies stand up to their promises. So we need to be cautious not to become a victim of such scams.
Normally auto warranty companies contact us through emails, marketing calls or through postcards. When we receive such communication in a time whereby we are thinking of acquiring an extended auto warranty then we might as well consider using them as they are offering a service that we have been looking for. At times some of the communication we receive are from dubious companies that try to entice innocent people by attractive warranty schemes that are sold at rock bottom prices.
We can easily be deceived by such companies. If you find an extended auto warranty program too good to be true, it is best to take your time before you signup. You must check out with your friends whether they have heard of such a company. In case there are any scams associated with those companies they will alert you.
You can also check online for user feedback and customer reviews by making a search using the name of the auto warranty company. If they have any websites you must visit the website and see how long they have been in business and whether they have been approved by BBB.
Try to avoid new companies because they will be struggling to establish their own business and if they fail and go out of business, you will end up paying for your repairs despite having an auto warranty.
Do not buy into scams that tell you that you need to buy your auto warranty from them to get your auto finance approved. This is one of the most vulnerable areas where some unscrupulous companies try to get more signups.
Also remember that you can buy your extended auto warranty anytime it is not necessary that it has to be bought at the time of the purchase of your car from the dealer. Auto warranties from the dealers are often expensive so it is best to shop around for your auto warranty from a private service provider.
Make sure that you have gone through the actual warranty document before you sign up or make any sort of payment. Never rush through the process, try to get as much information as possible about your auto warranty company and about your auto warranty policy. If you rush through the process, you might miss out even the most obvious problem areas and regret later.
