Problems with Car Extended Warranties

Extended warranties are a typical selling item in car sales.  However, there have been a number of problems with them. 

this is supposed to be covered and I need to get to work
  1. 1. Coverage problems   Your dealer, their advertisements, or a robocall says the policies covers engine problems.  However, when you present an engine problem, they try to argue that types of problems are not covered, and try to have the owner pay.   

  2. 2. Reimbursement Problems  They tell you they cover costs but try to shift some costs to you, another engine costs $6,000 and they want you to pay $1,200 out of pocket.  Many extended warranties have high deductibles, which can make it expensive for owners to utilize the warranty for minor repairs.

  3. 3. Lack of regulation  Most businesses are subject to some sort of regulation and review but extended warranty company may escape, leaving them to deceive consumers.  

  5. 4. Lengthy claims process  They delay in the hope you'll abandon the claim.  

    Strategies for Dealing with Extended Warranties  

    1. Don't accept their excuses 
    Recognize many companies are difficult, and their reasons for declining claims may be invalid.  

    2. Consult a lawyer                     
    Generally lawyers who handle consumer law or lemon law handle this type of claim, but you may have to search.   


    3. File a lawsuit on your own       
    If you cannot find a lawyer, consider filing a claim on your own.  

    Problem with An Extended Warranty, Call for a Free Consultation