Shopping around for auto extended warranty plans is tough: the number of companies trying to scam customers has risen in recent years, and scams can seem highly reputable and come to you over the phone, via email, or through the mail. There are ways, however, that you can avoid the worst auto extended warranty scams and find a legitimate company.
- Be cautious - Take your time when shopping and proceed cautiously. There is no deadline to buying a warranty, as long as you're using you car, you can buy a warranty for it. If a company tries to tell you that it's the "last day" you can buy a warranty, they're trying to scam you. If something sounds suspicious, back off and search for more information on the company from other sources before proceeding.
- Shop around - Shop around to see what the average prices for different plans are, so you know what to expect from a reputable company. Use a variety of sources to get an idea of which companies are legitimate and which companies have accumulated a high volume of customer complaints.
- Use the resources available to you - Ask auto clubs (like AAA) or other government organizations (like the National Highway Traffic Safety Association) for lists of certified companies that you can trust.
- Always speak to somebody in the company yourself - Call the company (don't settle for email) and speak to a real person to find out more about their prices and services. Make sure that what you hear on the phone is the same as what you're seeing online. If you hear discrepancies or sound suspicious, then that should be a warning sign that you're about to be scammed.
In general, the most important thing to remember when shopping for auto extended warranties is to always be vigilant! Shop around, and search online for lists of reputable dealers. Always get as much information as possible on any potential warranty dealer, looking online for reviews from other customers and to see if they have any reports from customers of scamming. As long as you proceed with caution, you'll be fine.
