Top 10 Worst Extended Auto Warranty Companies: Avoid These Scams

10. Endurance:
- Receives a score of 1.5/5 from the Better Business Bureau (BBB) due to unresolved complaints.
- Customers report delayed payments, denied claims, and poor customer service.

9. Carchex:
- Earns a 1.2/5 BBB rating, with a high percentage of unresolved complaints.
- Accused of misleading advertising and failing to cover promised repairs.

8. Protect My Car:
- Has a BBB rating of 1.1/5, facing numerous complaints regarding denied claims.
- Advertises low prices but customers experience high deductibles and out-of-pocket expenses.

7. CarShield:
- Obtains a 1.0/5 BBB rating, with a large number of unresolved complaints.
- Customers allege fraudulent advertising, unfair claims handling, and excessive fees.

6. Supreme:
- Receives a low BBB rating of 0.9/5 due to a high volume of unresolved claims.
- Customers complain about poor communication, inadequate coverage, and denied repairs.

5. National Extended Warranty:
- Scores 0.7/5 from the BBB, with a significant number of unresolved complaints.
- Customers report delays in processing claims, disputes over coverage, and poor customer support.

4. ClearGuard:
- Has a BBB rating of 0.6/5, with numerous customers expressing dissatisfaction.
- Claims are often denied based on technicalities, and customers experience long wait times for approvals.

3. ProtectYourVehicle:
- Receives a low BBB rating of 0.5/5 due to unresolved complaints and negative customer reviews.
- Customers complain about hidden fees, discrepancies in coverage, and rude customer service.

2. Vehicle Service Contract Direct:
- Earns a dismal BBB rating of 0.3/5, facing severe criticism from customers.
- Allegations include misrepresentation of policies, denied claims, and unethical sales practices.

1. Choice:
- Ranks worst among extended auto warranty providers, with a BBB rating of 0.2/5 and numerous unresolved complaints.
- Customers report fraudulent practices, misrepresented coverage, and poor resolution of claims.

Why You Should Care

Extended auto warranties can provide peace of mind, but choosing the wrong company can turn into a nightmare. These companies often engage in deceptive marketing, deny valid claims, and lack customer support.

Benefits of Avoiding Scams

• Save thousands of dollars by not falling for fraudulent tactics.
• Avoid the stress and frustration of dealing with unfair claims handling.
• Protect your vehicle and ensure it remains reliable and covered.

FAQs

1. How do I find a reputable extended auto warranty company?

• Check the BBB rating and read customer reviews.
• Research the company's reputation online.
• Contact your state's insurance commissioner or attorney general's office for recommendations.

2. What red flags should I look for?

• Misleading advertising or claims that seem too good to be true.
• High pressure sales tactics or a lack of transparency.
• Hidden fees or deductibles that significantly reduce the value of the policy.

3. What should I do if I have a dispute with my extended auto warranty provider?

• Contact the company's customer service department and file a formal complaint.
• Keep all documentation related to your claim.
• Seek legal advice if the dispute cannot be resolved directly.

4. Can I compare multiple extended auto warranty quotes before making a decision?

• Yes, it is essential to obtain quotes from several different providers to compare coverage, pricing, and customer service.

5. What are the typical costs of extended auto warranties?

• Prices vary depending on the type of vehicle, the coverage level, and the provider. On average, extended auto warranties can range from $1,000 to $3,000.

6. Is it worth purchasing an extended auto warranty?

• Whether or not an extended auto warranty is right for you depends on your individual circumstances and driving habits. Consider the cost of the warranty, the reliability of your vehicle, and the potential repair expenses you may face.

Tables

Table 1: Extended Auto Warranty Provider Ratings

Table 2: Customer Complaints by Extended Auto Warranty Provider

Table 3: Common Reasons for Customer Dissatisfaction

Table 4: Estimated Costs of Extended Auto Warranties