I would NEVER buy a new car without Warranty Direct coverage. Anybody who does is a damned fool.The one claim you paid for my wife's transmission covered the premium for three vehicles. The service manager at the Honda dealership was stunned as how quickly the claim was handled. At my age, I may never buy another car so I am really glad I have it. I am an attorney and we are usually careful about what we say but you may quote any part of what I've said as long as you do not take it out of context.

William Selmi, Jr.

The Internet has given rise to dozens of “warranty brokers” all touting that they represent many companies and thousands of “the best” plans. Think about it, does this make sense? How can all of the plans be the best?

The fact is, auto warranty brokers search for the warranty that affords them the highest mark-up. Often, the consumer does not know who they are actually buying their coverage from and is unable to research the records of these companies. The companies supplying coverage to these brokers have the industry’s highest rate of Better Business Bureau complaints with several of them having over 100 Better Business Bureau complaints in the past 3 years. The brokers themselves also have a very high rate of Better Business Bureau complaints with one of them having over 300 complaints in the past 3 years.

BUYER BEWARE

Consumers should be aware that a warranty broker bears NO REPSONSIBILITY to them once the sale has been made. Here is what one warranty broker has buried deep in their web site:

<Warranty Broker>. does not process or pay for any claims. These matters are handled by your warranty company. You are actually purchasing the warranty directly from the warranty provider you’ve selected and any claims should be directed to their claims department. Please keep the warranty company claims phone number provided in your vehicle in the event you need to have repairs done.

By purchasing a warranty <Warranty Broker>., no contract is made between you, the purchaser and <Warranty Broker>. <Warranty Broker> does not agree to and is not liable for payment of any claims and is not liable or responsible for the actions or business operations of any warranty company.

Contrast that business model with buying your coverage direct. Direct providers are responsible for paying claims and since they can’t hide behind anonymous warranty brokers, it is easy for you to research their records. Warranty Direct is a direct provider of coverage to consumers as well as over 2,200 new and used car dealers, banks and credit unions and has a 28 year track record of paying claims.

Warranty Direct is NOT a broker or an Internet only company.  When you purchase from us, we agree to be liable for and pay your claims. It's what we do and have done...for 28 years.

 
For a free, instant online extended warranty rate quote, please click here.

Did you know that in most instances, the company you are buying your warranty from has nothing to do with paying your warranty claims? The safest way to buy an extended automobile warranty is to buy direct from the warranty administrator.

Warranty Administrator – This is the company that actually issues the warranty and is responsible for paying any claims. This is the company that should come under the closest scrutiny by consumers. Buying coverage direct from an administrator offers the most security as your money goes directly to the company responsible for fulfilling the obligations under the warranty contract. You will also be able to obtain the same coverage they sell through car dealers and avoid the car dealer’s markup. Administrators will offer you pre-sale counseling and after sale support.

There are many warranty administrators (national and regional) with varying business models. You should select a company that offers their coverage through many different channels and not just the Internet. Like insurance companies, the larger the pool of warranty holders, the more likely the company is financially stable and has adequate funds to pay future claims.

Regional warranty administrators tend to be small and have a smaller base of customers. National warranty administrators will offer coverage through car dealers, financial institutions (banks, credit unions) and may even handle warranty programs for manufacturers. With a larger, more diverse customer base, these companies are more financially sound. When a warranty administrator handles coverage for banks, credit unions and manufacturers, you can bet those companies did a lot of research before selecting a warranty partner.

With companies offering extended coverage coming and going so rapidly, how do you know who to trust? As the oldest and largest company offering direct-to-consumer extended coverage, Warranty Direct has prepared this short checklist to help you in choosing your extended warranty coverage provider.

1. How long have you been in business?
2. Do you pay the claims or are you a broker? What company actually is responsible for paying the claims?
3. Are you able to offer coverage in all 50 states?
4. Are you a Better Business Bureau accredited business?
5. How many warranty contracts has your company sold?
6. Do you sell through car dealers and financial institutions or only on the Internet?
7. Do you cover wear and tear failures or only mechanical breakdowns?
8. Do you cover seals and gaskets?
9. Do you cover damage due to overheating?
10. Do you include $100 towing benefits with your plans? What about a full roadside assistance plan?
11. Can I preview the actual contract online?
12. What companies endorse your company?

While there are many other questions one can ask in evaluating warranty companies, the 12 above will provide a great start.

About Warranty Direct

Founded in 1980, Warranty Direct is the direct-to-consumer division of one of North America’s leading providers of service contracts and extended warranties for automobiles. Through its automobile extended warranty portals, www.warrantydirect.com, www.carwarranty.com, www.warrantyinfo.com and www.warrantydirect.ca , Warranty Direct leads the industry in efficient and expedited claims handling, impeccable customer service and a technology infrastructure that far surpasses the industry standard. Coverage is available in all 50 states and many parts of Canada.

For a free, instant online extended warranty rate quote, please click here.

All new cars come with several warranties, from bumper-to-bumper coverage to those that cover specific components like the powertrain, emissions system and rust perforation.   A new car can come with 6 or more warranties which can be daunting for its new owner to wade through.

 

Bumper-to-bumper: Often called the basic warranty, a bumper-to-bumper policy covers virtually every component on a new car. Most exclude regular maintenance, like fluid top-offs and oil changes, but a few luxury brands — most notably BMW and Saab — have separate free-maintenance provisions. Bumper-to-bumper warranties usually expire faster than powertrain warranties. American and Japanese cars typically come with a 3 year/36,000 mile warranty while luxury and more upscale brands carry a 4 year/50,000 mile warranty.

Powertrain: Don't be fooled, a 10-year or 100,000-mile powertrain warranty doesn't promise a decade of free repairs for your car. It typically covers just the engine, transmission and drive axles. This represents about 20% of your vehicle. Some systems NOT covered include air conditioning, electronics, steering, suspension and high tech electronics.

Roadside Assistance: Most automakers include roadside assistance with their new car warranties. These programs cover anything from flat-tire changes and locksmith services to jump starts and towing.

Corrosion: This covers body panels that have rusted through. Such policies generally last five to six years and have no mileage limits. They only cover complete perforation — a relatively rare occurrence with today's rust-proofing — so you'll probably be denied a claim for sheet metal that's only partially rusted.

Emissions: Since 1972, the government has required all cars to have emissions controls like oxygen sensors and catalytic converters. Two types of warranties exist: performance warranties and design and defect warranties. Performance warranties require automakers to repair or adjust emissions controls for at least two years or 24,000 miles if the car fails an emissions test. If emissions controls fail independent of a test, the design and defect warranty covers them for at least two years or 24,000 miles. Major components like catalytic converters and engine control modules are covered for performance and defects for eight years or 80,000 miles. On some items, California residents are eligible for additional coverage