How to Not Get Scammed When Looking Around to Buy an Extended Warranty or Service Contract

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By emcguire
User-Submitted Article

Article Rating: (1 Ratings)

Learn What to Look For, What Questions to Ask, How to Buy a Warranty and Not get Scammed

Difficulty: Moderately Easy

Instructions

Step 1

1. Ask who is behind the policy?
Just like your car insurance policy. If you run into a tree you just expect them to fix it back to normal. The same is true with Vehicle Service Contracts. Find out who is going to repair your vehicle when a part fails. Will you get to decide or will they pick the repair shop for you?
Step 2

2. Make sure you personally understand what remaining factory warranty is still left on your personal vehicle.
No need to add more coverage if you already have an existing policy in place. Only purchase the coverage you need for protection beyond the manufacturer’s warranty. After all, you paid for that coverage as well. Nothing in life is free not even factory warranties.
Step 3

3. Look for companies that are teamed up with Repair shops.
For example, take Pep boys. Pep boys is a publicly traded company and they with over 588 locations. Ask yourself why would a repair shop team up with an extended warranty company? Why? Only one good reason comes to mind. THEY INTEND TO PAY THE CLAIMS.
Step 4

4. Make sure the contract provider has an Insurer to begin with. Insurer: the company who is standing behind the policy. And, that the insurer is a publicly traded company.
Reason: They have accountability toward shareholders and they cant afford bad publicity nor losses by shareholders.
Step 5

5. Remember Vehicle’s Service Contracts are only designed to do one thing and that is to replace a part that has failed beyond the manufactures warranty.
Watch out for gimmicks like free gas, free this… You as a consumer just want peace of mind for your family that if the car breaks they pay to fix it. It’s just that simple. No gimmicks.. You purchase a warranty for your peace of mind... So when it breaks, look for the company that does what all VSC'S or extended warranties or Mechanical Breakdown Insurance is supposed to do. Repair the car. Stay away from fake promises. Look for the company that does what it says.

Comments

MI-Sandi said

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on 11/12/2008 Good stuff. Welcome to eHow. 5* (I tried rating, but the rating system is down, sorry)

craneop said

on 11/12/2008 very good advice. welcome to ehow. I'm looking forward to more articles from you in the future. Keep up the good work.

on 11/11/2008 Sounds like you know what you are talking about. Thanks. I once bought a car and the finance lady lied to me about 100 different things finally I had to fight it but I got my money back, using the BBB. Thanks for this info, it will help me in the future.