Cupertino Auto Repair

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Insurance policy debunked

Written by maryp posted on Thursday, August 21st, 2008

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I am looking at a beautiful brochure from an extended warranty company, which is of course an insurance company. The brochure is very well done, with some great catch phrases on it, one of which is: “Take your car to any repair shop”, (very bold font on the front). That looks great! And it’s only $3000. On the actual contract, (aka fine print), it states that you “must call the administrator”, before you take your car in for repair.

Well there is a few things wrong with this picture. Misleading advertising, and steering, (not to where you actually want to take your car). Yes, you can “take your car to any repair shop”. Will the warranty company pay for the “covered repair”? Well don’t count on it, no matter how much you spent on this contract. We are seeing consumers paying thousands of dollars for these warranties and in a most recent case, only getting coverage for about $280.00, after they pay their $100 deductible. And the sad thing is, it’s almost expired! We are seeing a lot of misunderstanding by the buyers of these contracts, and these minimal payouts are not unique.

Is it any wonder that in the last 4 days, personally, I have received extended warranty solicitations on: my cell phone, 6 times at my home phone, and 3 times at my business phone. There is a huge push to sell these and you can easily figure out why! You know the call….”your warranty has expired, this is the second warning”!

Keep in mind, that only you the consumer can file a complaint with the CA Department of Insurance. Yes, there are some good ones out there. But, there are some that operate without a license in our State and without oversight. Start with the California Department of Insurance to get information on how to buy one of these. But, if you are not happy with false advertising and steering, (and throwing away a few thousand dollars for the pleasure), be sure to let them know.

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