This page contains information about cards that are not currently available at NerdWallet. The information is collected by NerdWallet and has not been provided or reviewed by the card issuer.
If you haven’t received a call warning you that your car’s warranty is about to expire and pressuring you to purchase an extended warranty, you’ve probably heard of someone who has.
Consumers’ trust in the extended car warranty industry is difficult:
Others push complicated contracts with very good to fair prices that do nothing but drain money from your bank account every month.
Then there are bogus warranty offers, often offered over the phone or email, that may not be tied to a real service contract and could put your financial information at risk.
Here’s how to tell the difference between a genuine extended car warranty, a serious scam, and the gray area in between.
Are all extended warranties a scam?
We also found several companies that still offer extended warranties, but raised a few red flags: high-pressure sales tactics, no sample contracts, recent bankruptcies and conflicting pricing information. These companies may not be running an actual “scam,” but they are unlikely to provide you and your car with the protection you are looking for.
I received an extended warranty scam call – what’s going on?
Extended car warranty scam calls are so widespread that car owners may be more aware of the fake warranties they offer than the genuine aftermarket extended warranties.
How it happens: These calls are often pre-recorded or automated, and may include specific information about your car that may make them appear legitimate. They may tell you that your car’s factory warranty is about to expire and you need to take immediate action to extend your warranty by providing immediate payment.
What to do: In general, assume that any caller who requests personal information from you – such as a license number or payment information – is not safe to handle. Do not share any of this information over the phone. If you are concerned about your warranty having expired, contact your car’s manufacturer or dealership directly to confirm. Any legal warranty provider should be able to send you a written copy of the policy, so ask for one if you’re not sure.
To view extended warranty flags
Whether you’re shopping for an extended warranty and encountering ridiculous behavior from genuine companies, or trying to identify if a call, email, or letter in the mail you just received is a scam, some common red flags should stop you from moving forward or signing anything. Here are some warning signs:
Call for immediate action. Any time-sensitive pressure, whether it’s a cold call or from an online extended warranty company you’ve requested a quote from, is an indication that the sender may be pushing you into an unwise financial decision. Generally, you don’t need to purchase an extended warranty until your factory warranty has completely expired, so don’t rush.
Unsolicited communication. “Warranty expired” notices or mailers that aren’t from your car’s manufacturer may have information about your car, but that doesn’t mean they’re helpful. If you haven’t contacted the company before – or are unable to get through to customer service when you try – they’re probably not legitimate.
Conflicting agreements and policies. A good extended warranty company that is actually providing the service they are advertising should have no problem providing a sample contract and explaining their pricing levels to customers. If you’re being asked to enter payment information before seeing what you’re signing up for, that’s a red flag. And if the prices seem too good to be true, they probably are.
- Bad reviews You can search for a company on the BBB’s website to see if there are any open customer complaints, and check their rating on an A to F scale. Not all companies will have ratings, so customer reviews can help paint the picture. The Federal Trade Commission (FTC) also has reports on lawsuits against companies, which you can search by company on the FTC website. You can also check out more informal review sites, like Trustpilot.com and Reddit, to read unfiltered customer experiences.
Advertisement
Best for low cost per mile (new car)  | Overall excellent | 24/7 perfect for filing claims |
Limited time deal: $360 off | Limited time deal: $300 off | On the Premier Auto Protect website |
Cost comparison $$ | Cost comparison $$$ | Cost comparison $$$ |
Online quote No | Online quote yes | Quote online No |
Planning choices The best | Planning choices The best | Planning choices good |
Essay sources
NerdWallet authors are subjective authorities who use primary, reliable sources to report their work, including peer-reviewed studies, official websites, scholarly research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet’s high standards for journalism by reading our editorial guidelines.
