My Car Quest

February 26, 2024

Are Extended Car Warranty Scams?

There’s nothing like needing a car warranty and insurance to realize how much you need to do for your car. Aside from the manufacturer’s warranty and usual car insurance, you also need to look at reputable car warranty companies to ensure high-quality service. There are many misconceptions about car warranties, particularly extended warranties.

What Is an Extended Warranty, and Why Do Some People Think It Is a Scam?

A brand-new car comes with a manufacturer’s warranty that will last for a couple of months to about a year. Pre-owned vehicles don’t have this warranty since by the time the secondhand buyers purchase the car, the period the warranty is valid has been used up. This is why an extended car warranty becomes vital.

It is an agreement that covers the repair of the vehicle after the original warranty expires. Car owners who plan to sell their cars can transfer the ownership of the extended warranty to the buyer. Even if you don’t plan to sell your car in the future, an extended warranty is a practical solution to future expenses caused by repairs and replacement.

Does it have the same coverage as the original manufacturer’s warranty? Not always. Depending on the level of coverage you’re going to get, the extended warranty can cover most of the inclusions of the manufacturer’s warranty. At most, it will cover the powertrain, transmission, air-conditioning, and other systems.

Here are the things that an extended warranty does not cover:

Exterior cosmetic parts
Interior upholstery
Wiper blades and brake pads
Damages caused by floods and fires
Damage due to collision
Damage from abuse or neglect
Damage from previous repairs

But why do some car owners think an extended warranty is a scam? Millions of Americans have already received automated calls inquiring about their extended warranties. That led some to believe that extended warranties are scams. The deluge of telemarketing solicitations has pushed away potential car warranty industry clients. But it’s not only the business side of things that is getting affected by these unscrupulous calls. People who genuinely need these services have been denied the opportunity because of wrongful marketing strategies.

So, it is a scam? No. True extended warranties are not a scam. They help car owners avoid costly repairs and replacements and throw in additional perks, such as towing assistance, rental car reimbursement, and trip interruption assistance. If you purchase from a reputable car warranty company, you shouldn’t have any problem maximizing the policy.

Where to Get an Extended Warranty

It can’t be helped that some extended warranty companies are a scam and trying to hoodwink as many clients as possible. But if you are unsure about an extended warranty and the company selling it, you might want to read about where you should get a legitimate one.

If you want an extended warranty for your car, the best source is the car dealership itself. Most dealerships will offer an extended warranty the moment you buy the vehicle. Ask the agent if the cost of the warranty can be included in the car financing. Maybe you can also ask if it can be charged to your credit card under a zero-percent interest scheme.

Opting for a dealer’s extended warranty will give you access to genuine parts and certified technicians. These are people trained to work on your specific car model. Usually, the labor cost of trained technicians comes at a premium price. An extended warranty acts as a buffer; it softens the blow of the expensive repair and replacement costs.

Avoiding Extended Warranty Scams

Car owners need to ask the right questions to avoid being scammed. Sometimes, the deals get too good that you’ll sign your name without thinking. This is when you should reconsider your decision more. Too-good-to-be-true deals are simply just that—they’re really too good to be real. Don’t take deals at face value, and get to the bottom of every offer by reading the terms, scopes, and limitations.

The first thing you have to do is check the legitimacy and reputation of the company. You can do it by visiting the Better Business Bureau (BBB), which accredits different companies. It also rates companies based on the reviews and complaints filed against them. Customer review sites will also help you decide, so keep an open mind and take time to read the reviews.

Learn as much as you can about the company before deciding. Committing to an extended warranty company should always be done with caution. Remember that this warranty will last at least a year. The last thing you need is to worry about your car endlessly for a year.

If you have questions, don’t have second thoughts about asking the warranty agent. An extended car warranty is a binding agreement. It’s not something you should take lightly, and agents know that. They should be able to answer your queries with ease if the company is what they say it is. Ask for a copy of your contract and take time to read it before signing.


There is truly nothing more mind-boggling than the terms and conditions of a car insurance and car warranty. You should take time to read through it, as this helps you avoid being scammed by unscrupulous companies. Also, it’s best to remember your rights when buying and claiming warranties. A genuine extended car warranty is far from being a scam. It’s a protection for the car owners, making it a great investment.

Car Accident and woman

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