Thursday, August 8, 2013

Most Common Reasons Why Auto Warranties Fail



According to licensed car repair experts, here is a list of the top 5 areas where extended warranty coverage frustrates drivers the most. A new report from Polk showing the average age of today’s vehicles on the road underscores the importance of having the right vehicle service protection.
  • Blaming the driver: Extended warranty customers have a penchant for blaming the needed car repairs on the driver and making them feel like it’s their fault. For example, companies will try to show how the driver caused a part to fail or break, when a faulty part was to blame all along.
  • That’s only covered by the special package: Most extended warranties are sold through different levels of coverage and different packages. Many companies will try to confuse customers into thinking the needed repair is only offered through a special package they didn’t pay for.
  • Shop labor: A significant part of the confusion in repairs is understanding the differences between a part replacement and the labor it costs to replace that part. Many extended warranties will not cover labor or only a certain percentage of the mechanic’s rate, leaving the customer responsible to pay the balance. In some cases, the cost of labor can be more expensive than the part they’re replacing.
  • Avoiding the real problem: Many times, extended warranty companies will argue with the customer and mechanic over the needed repairs, looking for every possible reason to avoid covering the cost.
  • Shady Adjuster: Adjusters are not always unbiased third parties in the car repair process. Mechanics have seen instances where the adjuster will refute a damage claim. This is often the case when there is an unknown relationship between the adjuster and warranty provider.
"All of these are common themes we heard when conducting our research to start ForeverCar.com," said Russ Carpel, CEO of ForeverCar.com. "As consumers ourselves, it was important to create a product that would help drivers avoid these messy scenarios when they need vehicle protection help the most - at the repair shop."

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