An extended auto warranty can be a big help to cover the cost of unexpected repairs. However, there are scam artists out there that just want to take your money. Here are some indicators that you are dealing with a dishonest warranty provider.

They Don’t Let You See The Contract First

Some scammers try to make you pay first, and then let you review the contract later. They might say something like, “Go ahead and send payment, and you’ll get the contract right away.” Maybe they are trying to sell you a low quality warranty – or no warranty at all. You are entitled to review the contract in full before you make any payment or commitment. Don’t be misled.

CARCHEX lets you review all the details without any pressure. Ask all the questions you need before you make a decision. Get a free extended vehicle protection quote from CARCHEX today.

High Pressure Selling

If any warranty provider tries to tell you that you must “buy now” then they are probably scamming you. They might say that if you don’t buy right away, you will be required to get a qualified inspection or a certified odometer reading. You should never be pressured in any way to buy an extended warranty.

Threat Of Blacklisting

This might be one of the most underhanded tactics of all. The dishonest extended warranty provider might tell you that if you don’t buy right away, your vehicle ID number will be put on a blacklist. They will say that this prevents you from getting extended coverage anywhere. Don’t believe it and move on. There is no such thing as a blacklist.

Pulling Big Discounts Out Of A Magic Hat

Let’s say the warranty provider quotes you a price of $3500, and you tell them that the price is too high. Then they suddenly give you a discount price of $2000. These tactics reveal that the company is not transparent. Why didn’t they offer you the discount up front? Or maybe they are going to change the warranty conditions as well without telling you. Beware of sudden extreme discount deals.

Check With The BBB

The Better Business Bureau only gives A+ ratings to the companies that follow strict good business guidelines. If the company you are dealing with has a bad rating or no rating at all, you might consider trying another provider. Also, some companies change their names several times to hide a poor track record, and this info can sometimes be found on the BBB site. CARCHEX carries an A+ BBB rating.

Experience Counts

If a company has not been in business that long, you might want to look for another extended vehicle protection provider. Experience counts especially when it comes to handling and paying out claims.


If any company makes you uncomfortable when shopping for an extended warranty, it’s best to move on and look for another provider. CARCHEX has been in business for over 14 years. CARCHEX was awarded the Top Workplaces Award by the Baltimore Sun in 2011, 2012 and 2013, was a finalist for the 2011 BBB Torch Award for Marketplace Excellence, and was the only business in Maryland to receive the 2012 BBB Torch Award for Marketplace Excellence, which recognizes outstanding businesses and individuals across the country. These kinds of credentials give you peace of mind.

Get an online car warranty quote with CARCHEX now.

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