Recent story in the BuffaloNews.com (July 22, 2011) is yet another example of two crooks taking advantage of unsuspecting consumers and running another auto warranty scam. In fact, a quick Google search of “auto warranty scam” reveals over 1.4 million search results. That’s a lot of results on the subject!
Auto Warranty Scam Google Search Results (over 1.4 million!)
How does one protect himself from auto warranty scammers? The answer is actually very simple: do your homework! Auto warranty scam crooks will not likely to prey on educated consumers, so it is very important to learn more about the service plan (a.k.a. auto warranty) industry before you buy.
To help you with your research – we out together a 10 point checklist of items you should either ask or look for when you’re suspecting auto warranty scam.
Top 5 Warranty Scam Busting Questions
1. Are you selling me an extended warranty?
No one but the original manufacturer can sell you an extension of the warranty. If the sales person (from a non-manufacturer) on the phone insists that you’re about to buy a warranty extension – be alarmed!
2. How do I file a claim?
The sales rep should be able to walk you through how to file a claim and provide you with enough detail on how do actually do it (eg. is there an 800 number you will have to call?)
3. How does your price compare to competition?
The golden rule is this: if something sounds too good to be true – it probably is. An comprehensive repair protection policy is not cheap. If someone is offering you a bargain – ask why.
4. What’s your contact information and do you have a BBB listing?
If you’re not getting a clear response – you may be on the phone with a fly-by-night operation. Stay alarmed!
5. Who is your policy administrator?
Most auto protection policies are sold by independent sales offices on behalf of a policy administrator (a company that actually writes the policies and pays the bills if repairs are needed). Be sure to ask you sales rep about the policy administrator and whether you can learn more about who they are and how to reach them.
Unfortunately in this day and age scammers are found in every industry: from auto protection to supermarkets. Always stay alert and ask the right questions before committing to spend your hard-earned money!
