Auto Repair Insurance Scams

Definition of car repair insurance- 

Technically, car repair insurance is called extended warranty coverage. It serves to pay the cost of repairing problems that occur after the factory warranty expires – or in many cases it pays for repairs that the factory warranty doesn't cover.

Although you can buy car repair insurance, or extended warranties, many different places, be aware that many of these products are simply pre-paid service contracts and have serious limitations that limit their value. Typically the company selling the contract is not the company who actually pays claims. They are simply making a commission on the sale and don't much care if you get good service or not. (article by http://www.used-car-advisor.com/car-repair-insurance.htm)

Here is a list of just some of the many types of repairs and costs covered by this car repair insurance:

• Engine
• Transmission
• Electronic equipment
• Power equipment
• Air conditioning
• Steering
• Brakes
• Cooling system
• Suspension
• 4x4 systems
• Emissions system
• Turbo/Supercharger
• Towing fees
• Travel expenses
• Interior/Exterior Features
• Damages due to overheating
• Fuel System
• Much more .....

Choosing the wrong car repair insurance policy is asking for trouble because you will end up with nothing. You will certainly not be getting the coverage that you expected or desired. Phone sale car repair insurance policies are often scams because it’s so easy to make promises over the phone even if the company has no intention of delivering.
1. Telemarketer Car Repair Hidden Fees
Some of the most common types of telemarketer car repair insurance scams are because of hidden fees associated with your purchase. These may not seem like a big deal at the time however  they can make the insurance policy much more expensive. Some brokers will charge an arrangement fee for example, however this should never happen. The broker should get their fee from the insurance company themselves as the form of commission.
Some brokers will also charge an excess fee every time you make a claim. While these aren’t normally a problem it’s important to find out about these fees in advance. You should be very careful to avoid any hidden fees as you need to make sure you know exactly what you will need to pay.
2. Paying First and Reclaiming Later
Another very common auto repair insurance scam is the types of policy which request you to cover the upfront expenses of the car repairs and then claim the money back later. Read through the entire insurance document to find out whether or not this is the case. If you ever have to reclaim the money from the insurance company then the chances of ever getting it back are not very likely.
It’s much better to deal with an auto broker which will work with a certain number of garages directly. They will pay the garages straight away so that you don’t need to worry about getting your cash. It shouldn’t be your job to chase money from the insurance company, instead it should be the car dealerships problem.
3. Pressure Selling
Don’t get sucked in with a car warranty companies claims on the phone. There are a number of different promises that they can make which could end up being false. You must check the credibility of the company by taking your time to research them. Don’t settle for their pressure selling techniques.
If any business is trying to get you to sign the deal today then think again. A credible company will not tell you that a deal only exists today and try to pressure you into buying it. Instead they will give you plenty of time to think and decide whether or not the policy is the right one for you.
Get the company details if you are interested and tell them you will phone them back when you have more time. This will give you time to check out the credibility of the company and ensure that they are worth dealing with.