Slowing economic times are encouraging many people to repair their current vehicles rather than taking on car loans, and are also pushing many to invest in extended warranties meant to protect from future expense. While there is nothing wrong with extended warranties in general, there are some warranty companies in the marketplace that prey on the fears consumers have about auto repair, selling warranties that either do not cover full repairs, or that are extremely difficult to collect from. Both scenarios leave customers with either an unexpected repair bill or without a car. Ultimately, these dishonest companies gamble that the average consumer will not have the means to hire legal representation.
They also gamble that you will not do your homework, which is just what we advise. Before you purchase a warranty, investigate the providing company online, and call mechanics you use and trust for advice. That way, you can benefit from the experiences of others.