I don’t always agree with a lot of the auto-related reports from Consumer Reports, but one report I do agree with is with extended car warranties. For years, I have battled with extended warranty companies for my customers, only to find that many of these contracts are worthless. Too many of these contracts are sold by preying on emotions, giving the consumer a false sense of security. The sales people make claims that their “bumper to bumper” covers everything. In too many cases, that is simply not true.
To make matters worse, even when it is written that a component such as a suspension part is covered, when you read the fine print, it only covers the part if it is determined a “mechanical breakdown”, not “wear and tear.”
Another issue is with getting the claim authorized and payment for performing the work. From personal experience, calling in the claim is a real pain. You are put on hold for an eternity and when you speak to a claims adjuster, you had better have all the information they are looking for. If not, you will have to hang up and call again.
Once you do begin discussing the issue with the extended warranty company, you get the feeling that the rep is trying to find any little loophole not to honor the claim. If you do happen to get lucky and get an authorization to repair the car, getting paid is another story. The extended warranty companies have their own set of pay scales and begin the bargaining process; or should I say “beating up” process. What the extended warranty company is willing to pay is usually nowhere near what the repair shop needs for the repair; making the entire process extremely unpleasant for both the customer and the repair shop. The details of the contract are never really known until you have to use it.
Click the link below to read about extended car warranties from Consumer Reports; it had been published earlier this year and worth reading.