Car Warranties – When Your Car Maker Goes Bankrupt

car-manufacturers-going-bankruptHave you been wondering what will happen if your car manufacturer goes bankrupt and can’t provide warranty coverage for your new car?

This is a realistic concern that Chrysler car owners, among others, are struggling with.

Kelly Levine, Warranty Direct Sales Director, was recently featured on America’s Car Show. You can listen to her podcast right here.

What happens to your car warranty when the manufacturer goes bankrupt.

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: