InsaneJournal

The Week in Auto Warranty

Car Warranties

Automobile guaranties are available through many sources. If you buy a new or second-user car at an agent, you will be offered an automobile warranty through the maker or a personal insurer. Your bank or credit union, and your vehicle insurance supplier can offer a guaranty, but you have got to check the policy outline to see what's really covered. Some of these supposed automobile guaranties are really service contracts, which provide repairs or repayment for repairs with a limit on what parts of the vehicle they cover, and a deductible in most instances. The difference between these and a warranty is that the guaranty guarantees the parts of the vehicle for a set time period, usually Three to 5 years or a fixed amount of mileage, whichever comes first. An extended warranty is just that, it takes the coverage and runs it out for a particular time-frame or mileage allowance.


What is new, are the numerous telephone sales staff offering so called automobile guaranties to you. These callers use a selection of strategies to get you to buy an automobile guaranty or service contract from them, without the auto ever being seen by their company. These contracts may not hold up when the auto needs repair and the shopper then has to make contact with the customer service department and attempt to get coverage. In many cases there is not any one to contact in any way. One instance recently in the news is the fone sales company Credexx Company, of California. Their sales staff violated do not call listings to sell their products over the telephone in Texas. The policies offer coverage of mileage up to 250K which surpassed the value of the cars they were insuring. This makes no sense for the insurer, and it is wholly possible that no coverage would essentially exist if a claim was filed.

The state Solicitor General of Texas is suing this company for each offer they sold in the state.
Chase up calls by journalists to the company in California found the lines disconnected.
In a corresponding situation a guaranty provider in Missouri, got sued by their State Attorney for selling breakdown coverage, falsely telling possible clients that their manufacturer's guaranty had expired or was going to expire immediately. The company was charged with a bait and switch scheme and preying on gullible clients who were charged for guaranties they didn't essentially need. The cover the purchasers would get pointless and overpriced. Buyers frequently were mailed cards that told them of the fake expiration of their car guaranty.

The company isn't selling these products in Missouri.

Once again automobile customers are targets of fraudulent selling, and frequently become a victim of the sales tactics of dodgy organisations

Vehicle Warranty