A new car franchised dealer located in the southern United States has been found to be selling fraudulent extended auto warranties to its customers.  These accusations have been made by several customers when they attempted to use their auto warranty coverage, only to find out it was not valid for the repairs it described in their contract.  It turned out that there were many backdoor outs the dealership had given itself when preparing the contract forms.  These customers complained that the dealership would not on the coverage as written, leaving the consumers with repair bills they believed were covered.  It was later learned that several other customers that actually did get claims paid for work done at a variety of repair shops complained of a lengthy and difficult claims process.

Stories like these are precisely why any auto warranty offered by a dealer, or even an aftermarket auto warranty should provide clear terms and conditions understandable by a consumer.  You should not need a lawyer to interpret what is considered a covered breakdown and what is not.  Consumers should also be wary of any contract that does not clearly describe itself in the layman’s terms.

A quality extended auto warranty can save you hundreds or even thousands of dollars, but only if it is written in a way that allows it to be recognized by repair shops and dealerships nationwide.  It should also only be purchased from a company that has a solid reputation and is a member of the Better Business Bureau.  An investment in an extended auto warranty from an upstanding company should always mean that there will never be a question about whether your coverage is valid when it is needed.