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5 Crucial Tips to Identify the Worst Warranty Companies in California

It goes without saying that having your car covered by an extended auto warranty is quite relieving. After all, who wouldn’t want to get on the road without stressing about the whopping repair costs, shall the car break down or meet with an accident?

Moreover, there is no shortage of providers offering extended auto warranties. However, not every provider is known for selling the best coverage plans. In fact, there are several worst extended auto warranty companies ready to take your money.

Therefore, it’s important to identify unreliable auto warranty providers and avoid them at all costs. Here are a few red flags that should help you with the same if you are a California native.

Shady Credibility

It’s illogical to expect a company to out itself as one of the worst extended auto warranty companies in the market. In order to find that out, you will need to do your own research. There are several ways in which you could assess the credibility of a company.

You can start off by looking up if the company you are interested in purchasing coverage from has been linked to business-related incidents.

Additionally, you can reach out to your relatives, friends, peers, or basically anyone you know who has done business with the said warranty provider. If their experience was a negative one, how could you be sure that yours would be a positive one? This is a red flag that you cannot ignore.

Furthermore, you can reach out to leading automakers and other regarded companies in the motor sector and find out if they would recommend you doing business with the warranty provider in question. If multiple companies advise you against proceeding with the purchase, you know the reason why.

This method is among the most effective ones since companies within the automotive industry usually deal with different third-party extended auto warranty companies.

Last but not least, the internet is your friend. Lookup Google and Better Business Bureau (BBB) to read some customer reviews.

It’s almost a guarantee that at least one of the aforementioned methods would provide you with a clear idea if a particular warranty business has a bad reputation.

Questionable Coverage

Don’t expect an extended auto warranty to be an all-in-one solution to your car’s problems. It goes without saying that such warranties do not cover every part or repair. However, if you are spending money on a coverage plan, it better be good enough to save you some money down the road, right?

This is why you have to carefully go through the contract and find out what parts/repairs are covered and which ones aren’t. Moreover, thoroughly read the terms and conditions to assess if the contract is one-sided (in favor of the provider). That is something you must avoid at all costs since such contracts give the providers an out, shall anything goes wrong.

It should also be noted that most extended auto warranty companies do not cover wear-and-tear items such as brakes, clutches, bulbs, etc. So, do not consider their exclusion from the contract as a red flag.

In short, you can save yourself from a lot of trouble by spending time to fully understand the offered contract. Only put the pen to paper when you are clear on everything and believe that the particular coverage would be a valuable investment.

Unreasonable Costs

If covering your vehicle with an extended warranty is your priority, you should be ready to spend some bucks. While extended warranty contracts aren’t the most affordable things on this planet, they don’t have to be ridiculously expensive either. But what is the right price for an extended warranty contract?

Well, there isn’t one answer to the aforementioned question. The initial warranties (factory + powertrain) give you a rough idea of the frequency and extent of coverage you would be needing. So, take that estimate into account and opt for a contract that matches it. The cost will be dependent on the coverage plan of your interest as well as your vehicle specifications.

So, take your time, explore different options, and make up your mind. While a provider demanding a jaw-dropping sum isn’t to be trusted, you shouldn’t turn a blind eye to cheap contracts either. Their low price demand might be reflective of their lackluster coverage

Poor Customer Service

If the sole focus of the CS representative is to secure a sale via aggressive tactics rather than assuring you about the quality of the contract, treat it as a red flag, please. In order to expose the companies’ incompetence, ask the customer support representative some technical questions and if they are left speechless, it’s time to look for another warranty provider.

Non-Transferable

While this isn’t exactly a red flag, most credible extended auto warranty providers tempt potential buyers with the option of transferring the warranty. This option comes in handy while selling the vehicle.

Auto Warranty Companies to Avoid in California

Now that you have gone through the potential red flags that would help in the identification of poor extended warranty contracts, let’s take a look at some of the worst extended auto warranty companies.

So, be proactive and choose only what’s best for your car and wallet.

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