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Car warranty offers - what's the deal?

Consumers complain frequently to our office about all these FINAL NOTICE warranty offers they get in the mail. So what's the story - are these truly an offer to continue your manufacturer's warranty?

They are not from your manufacturer - they're from a totally different company trying to sell you an extended service contract. Complaints touch on two things:

  1. Mailings are misleading - they look like they're from the carmaker.
  2. The warranty company doesn't pay for repairs they say are covered.

Nice story on a local TV station last week summarized what these are all about.

You can file complaints with our office if you have problems with these companies. Also, as the story points out, all these companies have to register with the state. You can call the Department of Insurance to see if a company is registered at 1-800-726-7390.

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Posted by Travis on January 25, 2008 11:16 am :: Comments (1) :: Permalink

1 Response to "Car warranty offers - what's the deal?"

Gail says:

January 28, 2008 11:54 am

With Hipaa,etc why should these companies have access to our vehicle information? Since we bought a used truck in November, we have gotten anywhere from two to six of these "warranty expiration notices" per week. We are in the auto repair business and find that most extended warranties leave the car owners very disappointed in their coverage and would not buy one myself. Which brings me back to my main question, why should these companies have access to consumers and the vehicles they own?

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