3OYS: Know the facts about extended car warranties

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by Warren Trent

Video report: Gary Harper

Posted on August 12, 2013 at 10:28 PM

Updated Wednesday, Aug 14 at 12:35 PM

PHOENIX --  With the average age of a vehicle on our roads now 11 years old, that certainly underscores the importance of proper maintenance. And that has some consumers looking to purchase extended warranties as protection. But consumers should know there are a few risks involved with extended warranties.

Forevercar.com is a vehicle service contract provider who lists some common excuses warranty companies come up with to avoid covering a repair.

First up, blaming the driver is one excuse. Some companies might try to say the driver caused a part to fail when actually it was a faulty part.

That's only covered by the "special package", and that’s another excuse. Most extended warranties are sold through different levels of coverage. Some companies might try to confuse consumers into thinking a needed repair is only offered through an upgraded package they didn't pay for.

Shop labor is another excuse. Often, extended warranties don't cover labor, or if they do, only a small percentage. That leaves the customer holding the bill for the balance. In some cases, labor is more expensive than the parts.

In many cases extended warranty businesses will argue with a customer and mechanic over needed repairs, just looking for every possible reason to avoid the cost.

And one final note: some adjusters may have a relationship with the warranty company.

For more information visit www.forevercar.com.

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