HOUSTON – They try by phone, by email, and even by mail. It seems a carrier pigeon is the only method of communication for these companies looking to reach you about your vehicle’s extended warranty. In recent years, the automated phone calls have become the butt of jokes on social media. Some content creators even make full-on videos about those pesky people looking to “reach you about your car’s extended warranty.”
An extended warranty is pretty much what it sounds like. It’s a service contract or warranty that consumers can purchase that will cover the costs of some repairs beyond that of the manufacturer’s warranty or after the manufacturer’s warranty ends. “Extended warranties and vehicle service contracts typically exclude routine maintenance such as oil changes and tire replacement,” explains the U.S. Consumer Financial Protection Bureau. “An extended warranty or service contract on your vehicle pays the costs of some repairs, above what the manufacturer’s warranty covers or after the manufacturer’s warranty ends.”
There is no such thing as scam-free. Bad actors will typically find a way to enter every kind of business, including extended warranties on vehicles. However, the calls, texts, and letters you’re getting are likely from a legitimate business offering a real product. “We do get many scam reports from people saying that they have been contacted out of the blue by some of these vehicle service companies,” said Leah Napoliello, Vice President of Investigations and Public Affairs with the Better Business Bureau in Houston. Complaints against these businesses are on the rise, with 2024 set to surpass previous years in terms of the number of complaints. But this doesn’t mean they’re a scam. If you ask Napoliello, she’ll call them “misleading.” “We would consider it misleading,” she said.
This story came about after KPRC 2′s Gage Goulding bought a new car in December. Within a few weeks, the letters about the new car’s extended warranty came flooding in. Not just one or two, but a dozen or so. Gage Goulding: “Even if you buy a brand new car, you could still get these mailers?” Leah Napoliello: “Even if it’s a brand new car, you could still get these mailers. You could still be called.” The letters are alarming with words like “Important,” “Immediate Response Requested” and “Personal And Confidential – Open Immediately.” “They’re making it seem like you have to respond urgently,” Napoliello said. “This is an important matter and something’s going to happen with your current warranty if you don’t respond to this particular letter immediately.” In most cases, like in that of KPRC 2′s Gage Goulding, your car is covered by some kind of manufacturer warranty. For example, Gage is covered by a 100,000-mile warranty through December 2031, or whichever comes first, for the big-ticket items. “You want to avoid having double coverage,” Napoliello said.
We were curious to see what would happen if we called those companies who’ve been sending letter after letter to see what they would offer. The first company we called back was US Automotive Protection Services. Customer Service: “Vehicle service department, this is Jake. How can I help you?” Gage Goulding: “Hi, this is Gage Goulding calling with KPRC on a recorded line. How are you, Jake?” Customer Service: “Doing well.” After a little bit of small talk, including giving Jake a notification number from the mail they sent, we found out what the extended warranty would cover. “It looks like here authorization went ahead and they did approve the new car coverage here,” the customer service representative said. “So, it would expire on. And it looks like August of 2031. We’re at 101,000 miles. Whichever of the two comes first for you. Looks like getting it activated today is just going to be $195. You have only 18 installments of $224. And then you’d be completely paid in full for the entire seven years.” Wait a minute. That’s only 1,000 miles more of coverage, but nearly four months less in length. We pressed him on the warranty that the manufacturer provides for this vehicle. “So, you already have coverage,” he said. “So, what are we calling in for?” In the end, Jake didn’t sell us any coverage. Our second call was to another extended warranty company that mailed a letter, Evercare Direct. Customer Service: “Hello and thank you for calling. For quality assurance and training purposes, all calls may be recorded.” Gage Goulding: “Hi, my name is Gage Goulding calling with KPRC 2 on a recorded line. How are you today?” That’s the end of that call. The customer service representative hung up on us. We tried one more time, reaching a customer service agent named Ken. “You have full protection and all electrical, mechanical or computer-related items on the vehicle up until [August 25, 2031] or when the vehicle reaches 108,000 miles,” he explained in a similar process as the other company. This deal gives me 8,000 more miles of coverage, but also falls four months short on the length of warranty. After explaining my warranty to Ken, he also doesn’t try to sell us an extended warranty. “I’m not going to double coverage or anything like that,” he said. Both of the companies, Evercare Direct and US Automotive Protective Services did not sell KPRC 2′s Gage Goulding an extended warranty after learning about his manufacturer warranty.
Purchasing an extended warranty for your vehicle might be the right move for you, especially if you like having peace of mind or your manufacturer warranty is expiring or will be expiring soon. Gage Goulding: “I want to be clear these could, like an extended warranty, be helpful In some situations.” Leah Napoliello: “If you no longer have your manufacturer’s warranty in place, this may be something you want to consider, but you want to make the decision yourself.” Here are a few tips to keep in mind in case you ever answer one of those calls pestering you about your vehicle’s extended warranty: Never make a decision in the moment Take notes and compare them to your warranty If you still have questions, call your manufacturer or an organization like the Better Business Bureau.