Has your manufacturer’s warranty expired? Are you looking for a reliable third party extended warranty provider? If that is the case, then you will have to be very vigilant during your search. Although there are many reputable third-party companies, there is also a big pool of non-reliable worst extended auto warranty companies like Direct Buy Auto Warranty, US Fidelis, ASAP, etc.
However, we won’t let you swindle by these fake companies who claim to provide the best-extended warrantees. We carried out extensive research and have made a list of things that are not found in legitimate warranty companies.
However, before we provide you with the list, let us tell you how these worst extended auto warranty companies mentioned above came forward as illegitimate providers.
Direct buy Auto Warranty promised it customers that they would pay for most of the repair costs. However, by making exclusions from the plans, customers usually end up paying for most of the repairs. DBAW was then challenged in the legal court and paid $810,000 as a settlement.
Similarly, US Fidelis was also among third-party extended warranty providers. Within two years of its launch, they received more than one thousand complaints. This huge pool of complaints compelled many attorney generals to investigate. The basis of the investigation was US Fidelis ‘do not call’ registry and false claims to be affiliated with the dealers and manufacturers. By the end, both the owners of the company, Darian and Cory, got imprisonment of eight and four years.
ASAP warranty or American Standard Auto Protection warranty providers are not less than the above-mentioned fraudsters. Its fraud came into the limelight in March 2019. They are also on the list because: firstly, they didn’t fulfill their promise of thirty-day cancellation. Secondly, they stopped answering customers’ calls and serving them.
If you don’t wish to be trapped by these types of companies, then read this write-up carefully. Here we will tell you how you can avoid these frauds and pave your way to a legitimate extended warranty provider.
How to avoid the worst extended auto warranty companies?
Check the company’s reputation
Whenever we wish to buy something, we check out for reviews and recommendations. Similarly, when you plan to buy an extended warranty, make sure that you check out the ratings and reviews about the company. You will find it on their website, or you can use any search engine for it too. Furthermore, you can also go onto the Better Business Bureau website and check its legitimacy and number of complaints.
Check their services
Check out the services of the company. Give a thorough read on what components of your car would be covered in the plan and which ones would be excluded. Moreover, check the absolute exclusions list as well. Many companies may deny your claim if the covered component in the plan is damaged by a non-covered component of your car.
Apart from this, also see if the company applies a depreciating factor while signing the plan. It means that the company would analyze your car and would pay the partial cost for repairs and would cover replacement parts costs only if your vehicle is under a certain mileage.
Before you sign-up for the plan, give it a thorough review. If you don’t understand anything, ask the company for help, and if they don’t help you out, know what is under the blanket.
The costs are extremely high or unrealistically low
When we ask you to check out the cost, we mean to say that don’t pay extra, nor get interested in cheap packages. Usually, the costs of extended warranties aren’t low, but skyrocket pricing is also not true. Moreover, the price of your plan also depends on which plan you choose, what is the year, make, and model of your car, and other considerations.
Get quotes from multiple companies, and check if another company is asking for the exponentially high cost for the same plan that you are receiving at an average rate. If they are, then know that they are overcharging you. Moreover, if you receive rock-bottom rates, then know that something is fishy.
You are not allowed to transfer your extended warranty
Know one thing, and that is extended warranties are transferable. If you plan to sell your old car, then you can also transfer the extended warranty to the new owner. Most of the well-reputed companies allow their customers to do it easily, and some charge a minimal amount of fees as well. However, if a company denies transferring your warranty to the new owner, then you must consider the one that allows you to do so.
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