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Extended Car Warranty: Auto Service or Scam

Vehicle Tips, Extended Auto Warranty, VSC Plan, Ambassador Plan

By Heath Harden | 8/15/19 11:30 AM | 0 minutes to read

I know, the first word that comes to mind when you hear "extended car warranty" is SCAM. This notion is a nightmare for you and for marketers of reputable extended car warranty companies.

Unfortunately the reputation was earned as there are endless tales of extended car warranty companies leaving their consumers to foot the bill.

Luckily, PMC is not one of those companies. 

So, let's take a little time to understand how PMC Auto Service is distancing themselves from other extended car warranty companies and how to avoid falling for the warranty scam!

Robocalls: The Truth

 

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First, let’s understand what robocalls are. A robocall is exactly what it sounds like. A call made and answered by a robot (not a live person). This method is preferred by scammers as it maximizes calls thus maximizing the chance of finding a "gullible" buyer for their "product".

Don't get me wrong - robocalls can be beneficial for school notices, weather updates, and the like. However, when used for nefarious reason's, they are not only irritating but illegal depending on the reason. As stated by the FTC

"A robocall trying to sell you something is illegal unless a company has your written permission to call you that way"!

Over 40 billion robocalls were made in 2018 just to Americans! Think of that number for a moment. Almost 20 billion of those were scam related robocalls. Look at the numbers!

Type

2018 Robocalls

% Robocalls

Alerts

10.1 billion

21%

Payment 

11.0 billion

23%

Marketing

8.9 billion

19%

Scams

17.7 billion

37%


And, to add insult to injury, warranty scams were in the top 10 of those scam related calls. It’s clear to see why numerous consumers steer away from extended warranty’s, even though it is a needed benefit.

As a legitimate auto protection provider, PMC doesn’t solicit sales with robocalls. A live representative is always available to handle any situation during hours of operation.

Understanding what robocalls are used for and how scammers use this technology enable's you to make the correct decision when searching for a reputable extended car warranty company.

Retrieving the company's name and researching them will allow you to draw a conclusion on if they were scammer's or not. However, robocalls are not the only subject causes extended car warranty's to have a bad name. Let's review some common misconceptions in regards to extended warranty's.

Related Topics: Buying an Extended Car Warranty? | Is an Extended Car Warranty Worth Buying | Auto Maintenance Programs at PMC

Coverage Misconceptions & Lies

As an employee of an auto services company like Protect My Car, I've had to address numerous concerns and misconceptions about what an “extended car warranty” covers. I would like to address some common misconceptions when it pertains to purchasing an extended car warranty. The more educated you are, the more bang for your buck you'll get when it comes to negotiating your contract. 

1. Extended Car Warranty and Bumper to Bumper coverage

If you are searching for a warranty for your used vehicle then you should be aware that no policy from any reputable extended car warranty company will cover Bumper to Bumper!

Simply put, if a company is offering your 2010 Ford F150 with 110,000 miles on it bumper to bumper coverage, you are being scammed. You will be responsible for wear and tear items in majority of extended car warranty policies.

PMC does not offer bumper to bumper coverage with any policy. All of our policies have exclusions for wear and tear items such as brake pads, windshield wipers, lights, etc. For a full list of exclusions review any of our sample policies locate under Extended Warranty and Ambassador Policy

 

2. Mechanics will not deal with extended car warranty companies

After sitting down and discussing this with our claims supervisor, his take on it helped me understand the situation better.

Think of being that first-time consumer on the search for your first auto protection policy. As I stated above, the horror stories are endless, thus making your search difficult or just completely turning you away all together. This is no different with mechanics.

There are only 2 reasons why a mechanic will not deal with an auto protection company! Either they don’t want to be supervised by experienced staff to ensure you’re getting the best service at the best rate or they have been burned by an illegitimate warranty company.

PMC has made working with mechanics a lot easier. By hiring former mechanics to assist with repair claims, we have taken a knowledgeable approach to bridging this gap.

Also, by using the same pricing program as majority of maintenance shops, we are able to assist  your mechanic during the claims process. But we didn’t stop there!

Applications are currently under development to make these relationships even more successful, longer lasting, and equally valuable for all parties involved. Stay tuned!

3. Only newer low mile cars are accepted

This can vary depending on each company’s policy requirements. In most cases you will see that the maximum requirements are vehicles no older than 10 years of age and less than 150,000 miles.

This is because majority of extended auto warranty companies only offer vehicle service contracts. These are commonly referred to as VSC’s and are deductible based policies. Basically, your car doesn’t have to be “newer”, it just can’t be too old.

PMC knows it doesn’t have to be this way. That’s why we introduced our AMBASSADOR POLICY. You shouldn’t be limited to 150K miles for protection.

This policy offers up to 50% off those covered repairs and to vehicles up to 20 years old and 300K miles. These policies were specifically drafted for vehicles that can’t find auto protection coverage due to miles, age, business use, etc…

4. Auto protection for business use (uber, rideshare, lyft, etc…)

This has been brought up numerous times. That's a hard NO! Since majority of extended car warranty companies only offer vehicle service contracts that means your business vehicle will not be covered. This is because of the increase in use of the vehicle thus increasing the risk to reward on the policy provider.

Not at Protect My Car. We don’t see it that way. As an individual business owner, chances are your vehicle is your leading source to providing income for your family. You should be able to have as much coverage and protection needed to ensure that vehicle stay’s running and making money. Our Ambassador Policy was designed for this purpose also. This way you can receive immediate assistance to get back on the road and a reduced price which limits the impact on your finances.

We couldn’t include every misconception, question, or lie but if you have any questions or want to know more information you can email here for more assistance 

Now, we should have a pretty clear understanding of the impact robocall scams have on the warranty industry and an answer to some common misconceptions surrounding extended car warranty companies.

Reviews, Reviews, Reviews…Learn the rating


This is something I know we all do. As online consumers, we depend on honest, well detailed reviews to give us an overall opinion on the type of quality or performance we should expect. However, we all know that reviews can easily be paid for or faked. That’s why it’s important to know which rating websites provide the most accurate reviews.

Do you just hire the first roofing company you see in the yellow pages?

If your answer is no, then you are expecting quality honest reviews, not paid reviews that makes everything seem glorious. These 3 review websites offer the most accurate reviews when dealing with extended car warranty companies. If your searching for an extended car warranty and the company you are contacting doesn’t rank on all 3 of these websites, chances are you will not be satisfied by their service! Here is Protect My Car’s auto service ranking links as examples:

  • Trustpilot - ⭐⭐⭐⭐ 945 Reviews
  • Consumer Affairs - ⭐⭐⭐⭐ 2,340 Reviews
  • Better Business Bureau - ⭐⭐⭐⭐⭐ 506 Reviews

There are also other topics to consider once you’ve begun researching reviews. No company pleases 100% of their consumer base, even though attempts are made. Consider the following:

· Is the company actively responding to complaints?

Look through the reviews and see if the company is actively addressing them. This signifies that a company understands the power of reviews and actively par-takes in addressing issues that may arise during any of their interactions with consumers or future consumers.

· How descriptive is the complaint?

Do the reviews just say “This company sucks” or “They don’t cover anything”? This happens all the time. It can be from a consumer who is mad that brake pads aren’t covered or a competing company trying to disparage another. Reviews like these complicate the matter as a problem is never identified. These reviews do not help in drawing a complete picture about the performance of the company.

· What is the overall rating across all platforms?

This is important. When researching reviews and ratings across multiple platforms consider the rating of the company for each one. Unless a company just started rating and ranking their site on that specific platform, their ranking should be similar across each platform. This helps confirm the performance of the company as multiple users across multiple platforms have similar raves and rants about them. It helps in drawing an overall conclusion about the company.

Reviews are crucial in the success of any company. Protect My Car understands this crucial research tool. We rank, update, and respond to all complaints and compliments across those platforms. We urge not just new consumers but consumers who cancel to rate our performance. By actively par-taking in the consumer review process we have been able to average 4 stars across all 3 platforms, thus reaffirming our commitment to success by providing a valuable service efficiently!

Let’s do a quick re-cap now:

  • We know what a robocall is and its effect on the warranty industry!
  • We’ve reviewed the multiple misconceptions regarding reputable extended car warranty companies
  • We discussed the importance of researching reviews and distinguishing which ones are valuable in assisting with purchase decisions

By now you probably believe your scam proof when it comes to dealing with extended car warranty companies, but as with most scams it’s a little more complex than that. These scammers and poor performing extended car warranty companies have another method to utilize in attempting to steal your hard-earned dollars.

Mailer Demons: Your Policy is About to Expire

 

mailerdemon

 

If there is anything we can relate on, it is the mailer demon. You’ve received them and so have I. And let’s be straight here. I will say that receiving a piece of mail is a lot less annoying than receiving 100 phone calls for an extended car warranty. However, these pieces of mail can be very misleading. These are typically sent by a third-party company, so the actual warranty provider holds no liability to the marketing practice enacted by the third party.

Let’s cut to the chase, if a company can’t send you a piece of mail with their direct logo on it or you have to do a ton of research to find out which company sent you that letter, then the chances are high you are either about to be scammed or your about to conduct a business agreement with a company that doesn’t honor their contracts. This may be a great marketing strategy, as it encourages you to open the letter, but it does nothing in building a valuable consumer/business relationship.

Don’t take these letters at face value. Do your diligent research! An auto protection policy is a great investment when conducted with a reputable company. If this wasn’t the case, you wouldn’t have as many scammers because the interest would not be there.

 

Am I Being Scammed or Not?!

 

I know this question runs through every purchaser’s mind during the checkout process. You honestly won’t know until it’s time to place a claim. However, this can be too late in some cases, as you’ve already handed over hundreds or thousands of dollars before you made your first claim. So, to avoid a possible extended car warranty scam, use this checklist to help ensure your dealing with a reputable extended car warranty company and not a corner lot scam:

  • Consider how first contact was made! Did you get an email? A robocall? A mail-alert?
  • Did the company accurately inform you of who they are and what they do?
  • Do the reviews across multiple platform build a legitimate business picture? Do they vary significantly? If so, Why?
  • The Company’s Age? Yes, companies do change names over time for various reasons. This doesn’t indicate a scam though, as marketers do change over time. Your less likely to be dealing with a scammer who has dealt with Uncle Sam for over a decade.
  • What do their policies cover?
  • What are the exclusions?
  • What extra benefits are available?
  • What are the cancellation terms?

Before I take a moment to break down why Protect My Car has done so well over there 10+ years in business, I want you to utilize this information to make the most informed decision possible. An extended car warranty is a great addition to a used vehicle. Our first concern is to ensure you are protected, regardless if you decide to pursue a relationship with us or not. Having knowledge on such subjects allows us to get the biggest bang for our buck.

If you have any questions or concerns about the above content or other related inquiries you can send a direct email to

Email Writer

PMC: Auto Protection Services You Can Count On

A thorough review of PMC across multiple platforms will net you more positive results than negative. PMC is highly active across all rating websites ensuring we are being pro-active in resolving consumer complaints and concerns. PMC does not have third party sellers! You call PMC, you get a PMC representative. We finance our own policies, which means we don’t need another party’s approval to handle claims request’s and policy prices. When you deal with Protect My Car, you deal with Protect My car, Period!

Also, you can’t go wrong. Protect My Car gives you a 30-Day Money Back Guarantee! More than enough time to thoroughly understand all the coverage options and to review the benefits of becoming a PMC member. What other benefits come with being a PMC member? You can enjoy some or all of these benefits based upon your policy decision:

  • 24/7 Roadside Assistance
  • 3 Free O.E.M. Oil Changes Yearly
  • 2 Free Tire Rotations Yearly
  • Rental Reimbursement
  • Exclusive discounts with our partners
  • PMC Rewards 
  • And More……

We didn’t stop there! By offering a new type of coverage policy, we have increased the amount of policies we offer thus ensuring we can cover almost any consumer. Well, what qualifications does your car have to meet to become a PMC prospect?

  • Under 300K miles
  • Not older than 20 years
  • Business use (uber, lyft, rideshare, etc..) are accepted and covered!
  • Salvaged or branded titles accepted!
  • Modifications Accepted!

Thank you for taking the time to become more educated on the extended warranty process and learning to recognize possible scams. But remember, every mile you drive increases the likely hood of a breakdown. Don’t Neglect It, Protect It!

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