Problems with Car Extended Warranties

This is supposed to be covered, and I need to get to work!

Extended warranties are a common add-on during car sales. However, there have been a number of issues reported with them.

1. Coverage Problems

Your dealer, their advertisements, or a robocall may claim the policy covers engine problems. However, when you present an engine issue, the company may argue that the specific type of problem is not covered and attempt to have the owner pay out of pocket.

2. Reimbursement Problems

The company may state that they cover costs but try to shift some expenses to you. For example, if an engine replacement costs $6,000, they might insist you pay $1,200 out of pocket. Many extended warranties also come with high deductibles, making them costly for minor repairs.

3. Lack of Regulation

Most businesses are subject to some sort of regulation and oversight, but extended warranty companies may escape such scrutiny, leaving them free to deceive consumers.

4. Lengthy Claims Process

These companies often delay the claims process, hoping that you will abandon your claim.

Strategies for Dealing with Extended Warranties

1. Don't Accept Their Excuses

Recognize that many companies are difficult, and their reasons for declining claims may be invalid. Stand firm and challenge their decisions.

2. Consult a Lawyer

Lawyers who handle consumer law or lemon law cases typically deal with these types of claims. However, you may need to search for a qualified attorney.

3. File a Lawsuit on Your Own

If you cannot find a lawyer, consider filing a claim on your own. Resources and small claims courts are available to assist consumers in pursuing their rights.

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