Consumer Encyclopedia
Car extended warranty
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Consumers often receive unsolicited mailings offering them an extended warranty, or extended service contract, on their car, truck, van or SUV. The Attorney General has serious concerns about many of these mailings, which usually arrive in the form of a postcard:
- Some appear to come from the auto manufacturer. In most cases, they don't. They are from a completely separate company.
- Most imply that your factory warranty is about to expire. Actually, these companies have no idea when your warranty expires. Some consumers, out of fear, sign up for the service contract when they have plenty of time and mileage left on their factory warranty.
- Refer to their product as a warranty, when it is actually an extended service contract. Under Missouri law, a warranty by definition is a protection product issued by the manufacturer and is included in the retail price.
Consumers often complain to the Attorney General that the companies fail to deliver on their promises and reject repair claims.
Before signing an extended warranty, do some research on your vehicle's make and model to determine what kind of repair costs you can expect (not including regular maintenance like oil changes, new tires, etc). Then compare the price of the extended service contract to decide if it's worth it.
Also, check to see if other consumers have filed complaints against the company you're considering. You can use the Attorney General's online Know MO feature.
