How to Avoid Auto Warranty Scams?

Auto warranty scams are becoming more and more popular as a quick way to make money. An auto warranty is a type of insurance coverage. New cars come with an auto warranty covering any mechanical defects and providing assurance that there will be no surprise maintenance costs. These warranties are normally for a specific number of years or mileage and are used for service at automotive dealership service centers.

There are three ways to avoid auto warranty scams: investigate, check references, and verify independently. Invest the time and effort required to reduce your risk of becoming a victim of auto warranty scams. The more information you have, the more protected you are.

When purchasing an auto warranty, try to write down all the services included. Look for details on participating auto garages. Take note of the length of coverage that is provided, both in years and in mileage.

Check the fine print to find out who is responsible for payment to the auto garage at the time the service is provided. Avoid any agreement that requires you to pay the costs directly with a promise of later reimbursement. The risk of fraud is very high when it comes to these types of arrangements. Ask if there are any restrictions on the vehicle’s year, model and make.

Contact at least four auto garages which are participating in the program. Visit one and talk with the service staff to verify that the warranty coverage would be honored. All auto mechanic licenses should be posted. If you do not see any, this is an unlicensed shop, so you should avoid purchasing the auto warranty.

The most common car warranty scams offer complete vehicle coverage, with no restrictions on time or mileage, for a reasonable fee. There aren’t any restrictions on the auto garages that you can use and all fees are due upon signing. Remember that auto warranties which are offered by companies based in another country are rarely legitimate.