Defend Your Vehicle against Expensive Repairs with America’s Trusted Provider
With all the uncertainty in today?s market it is more important than ever to ensure you are dealing with a financially stable company, especially on the internet. Some states regulate the sale of Vehicle Service Contracts, they have already made that research a lot easier for the consumer.
In order to circumvent these special licensing requirements set forth, there has been a recent influx of product warranties being offered on the internet by a variety of extended warranty brokers. Product Warranties are not licensed, are not closely regulated, and do not have to be guaranteed by an insurance company. Even if a product warranty purports to be backed by an insurance company, the insurance company may not be licensed, financially strong, or actually back the warranty.
Warranty Direct has been licensed as a warranty provider in all states. In addition all of our plans are insured by an A- Excellent AM Best rated insurance company. For further information, please call one of our Certified Advisors at 1-800-632-4222. Click here to update and view your quote.
Some questionable terms found in product warranties are as follows:
- Vehicle Protection Kit ? The administrator will ship the Vehicle Protection Kit to the purchaser of this product warranty upon remittance of this agreement from the seller. The kit contains products for vehicle protection with instructions and other important information pertaining to this product warranty.
- The total of claims paid shall not exceed the wholesale value of the vehicle at the time of claim initiation.
- Purchasers may not perform their own maintenance for product warranty requirements.
- Pre-Existing ? A condition to a covered component of the vehicle, whether known or unknown to the purchaser, that existed prior to the product warranty purchase date or which may reasonable be assumed to have existed prior to the product warranty purchase date.
Sadly, unlicensed warranty sellers have become epidemic. Buying from an unlicensed warranty seller is risky as they do not meet the high standards required by your state. In order to be licensed, a warranty firm must be financially viable, operate within the laws and file their rates with the state. Unlicensed firms may offer no protection to you should the company go out of business. A licensed seller will be audited annually to make sure their finances are in order.
Many of the unregulated companies offering these plans are referring to them as bumper to bumper coverage, even though they only cover a short list of items. A lot of this misinformation is causing consumers a lot of confusion about the coverage they actually have. Sadly, most people won’t realize that they bought a worthless plan until they have a major claim denied.
Read more about product warranties at the St. Louis Post-Dispatch.
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Filed under: Auto Warranty Industry News, Consumer Affairs, Extended Car Warranty Contracts, Researching Auto Warranties, Scams, Warranty Direct
Is it really still possible to get a decent credible insurance company for cars in this type of economy? I don’t really think it possible. There’s always something wrong with any insurance agency out there.