The quality and reputation of an extended warranty company has a major role in getting our car insured. Generally, the two main parties who undertake the responsibility for extended car warranties are the insurance companies and the Risk Retention Groups (RRG).

It is always advisable to do a little bit of research about the company, which is going to insure the vehicle. Some of the important details, which should be well looked, include the present ratings of the insurance company, an oversight of its regulations, review about the company by past clients and its financial stability.

More stress should be laid on choosing an insurance company, which is rated among A-list by credit rating companies. Also, some other important factors, which should not be overlooked by a car owner is to include checking the compliance of an insurance company with government regulations. Insurance companies should have a steady record of submitting their annual financial reports with the government authority.

Most of the insurance companies seek to have business alliances with underwriting firms which have a considerable amount of experience in giving out car warranties rather than merging with RRG’s which are relatively new in the insurance industry and do not have much experience in giving extended car warranties.