Extended Car Warranties: Are They Really Just Scams?
If you’ve started researching extended car warranties online, you’ve undoubtedly stumbled across some that seem less than honest. Unfortunately, the world of auto warranties is certainly tainted by illegitimate schemes, but that doesn’t mean every extended car warranty is a scam. Here’s how you can tell if the one you’re considering is legitimate and worth your money.
Was the Warranty Offered During a Cold-Call?
When you pick up the phone and hear a robotic voice question your current auto protection program, it’s probably a good idea to hang up immediately. Reputable auto warranty providers most likely won’t call you randomly, and even if they do, you’ll speak to a real representative, not a robot.
Who Is Offering the Warranty?
It’s always a good idea to look for extended warranties that are provided by your vehicle’s manufacturer. Third-party companies are much more likely to be shady, and if you fall in with one of them, you might end up stuck with fraudulent policy. Besides, manufacturer warranties usually cover more repairs and maintenance than third-party plans do, so they’re almost always a better choice.
Do You Feel Pressured to Purchase the Policy?
When you’re being scammed, the person or company selling you the warranty will try very hard to get you to commit. If you feel that you are being pushed into signing a contract without doing enough research or understanding what you’re buying, this could be a sign that you’re engaging with fraudulent warranty providers. A reliable, trustworthy warranty provider will give you the time and information you need in order to make a smart decision.
Did You Read All of the Fine Print?
Every warranty, whether it’s legitimate or not, will have different stipulations and coverage details. That’s why it’s so important to read through your warranty contract extensively before signing anything. By making sure you understand every aspect of the extended warranty, you’ll cut down on your chances of being scammed or binding yourself to a worthless policy.