Is Buying From a Warranty Broker Safe?
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 RESPONSIBILITY 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.
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Filed under: Used Car Warranty, Warranty Direct
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