Direct Marketing - Auto Warranty Buyers Beware!

For me, not a day goes by that I do not receive some type of unsolicited telemarketing phone call or piece of mail trying to sell me something.

Unfortunately many of the companies that do direct marketing have a terrible reputation and are generally very poorly rated with the Better Business Bureau. The reason for this is most higher-quality companies do not participate in direct marketing as they generally get enough business through traditional marketing methods. And no business is this more true than in the auto warranty business. There isn’t a single company we have found that direct markets warranty plans that actually has an insurance company underwriting their business. This is the gold standard for determining whether a warranty company is reputable and upstanding. These unscrupulous marketing companies are simply sham companies set up to scam you out of your money. Unfortunately this also goes for auto warranty companies that advertise on the radio or cable television. No “reputable” auto warranty company does any type of television or radio ad.

Purchasing an auto warranty is actually one of the best financial decisions the vehicle owner can make. The way to protect yourself and make sure that you purchase an auto warranty from a company that will be there to pay claims when the need arises is to make sure that you follow certain criteria. Some of the things to make sure of are…
• Be certain that the auto warranty company is in business for 10 years or more to assure that they are successfully paying claims, not just selling warranties.
• Check to make sure that the company is not only A+ rated by the Better Business Bureau but also an accredited BBB company.
• And perhaps most importantly, you want to make sure that the warranty company is backed and insured by a United States-based insurance carrier that has at least an A rating with AMBest. This means that even if the warranty company itself goes out of business your claims will still get paid directly by an underwriter.

The bottom line is you need to do more than just get a quote and assume the plan is a quality auto warranty program. You should always do your research to make sure that you know what you’re getting yourself into. An excellent place to start is one of the most reputable companies in the industry, Auto Advantage Inc. who have been offering automotive warranties and roadside assistance since 1979.

 

Auto Warranty Company Fake Testimonials, Endorsements, Recommendations and False Claims…

We are often questioned on why we don’t post any testimonials of our happy customers on our website. It is unfortunate, but it is become the practice of many companies, both reputable and not reputable, to either create their own testimonials or higher a public relations firm to do it for them. This is obviously a dishonest and poor way to run a business. We choose not to post testimonials, though we have many, as we simply will not fall into this group.

So how is a consumer supposed to know what companies are reputable and what companies are not? The last thing a customer wants to do is invest their hard-earned money in a warranty program that will simply not pay claims as they promise. The best way to protect yourself as a consumer is to make sure you follow the following guides…

• First, make sure the company you choose for your warranty coverage has been in business 10 years or more so they have shown experience successfully paying claims, not simply selling plans and collecting premiums.
• Second, make sure the plan you choose is directly underwritten by a US-based, A rated insurance carrier. Many “so-called” auto warranty companies are simply corporations or risk retention groups and have no financial or insurance backing. Having a directly underwritten plan means that if the warranty administrator ever fails to exist, your claims will automatically be paid by the insurance carrier and your coverage will be valid regardless.
• Third, you want to choose a company that has an A+ rating with the Better Business Bureau, and perhaps more importantly has been accredited by the Better Business Bureau.

The bottom line is that as you research the different coverage available to you, do not only look at the items covered and the price of coverage, look at the tenure and reliability of the company you are purchasing from. Though we are not the only company in the auto warranty industry, we are one of the best. To obtain a quote visit our webpage.