The extended coverage industry has gone through a lot of scrutiny in the early 2000s. Numerous companies have come and gone, promising to pay claims but not following through. The whole situation has put a bad taste in consumers’ mouths. But what has happened in the past doesn’t mean that car warranty companies have not learned from this company’s unethical practices, and car warranty scams are fading away just like those terrible companies.
Do all companies participate in car warranty scams?
No, not all companies are corrupt. Due to the actions of a few companies, some believe that car warranty scams will always exist. This negative view is understandable but not entirely accurate. The entire industry should not be judged by the actions of one bad egg. Just because one company is wrong, doesn’t mean they all are.
For example, if Ford started manufacturing vehicles that would completely break down after 10,000 miles, would it affect your opinion of Toyota or Hyundai?
Of course, it wouldn’t. You may never buy a Ford again, but just because one manufacturer is doing something unfair, doesn’t mean that they all are.
The same thing could be said for any industry, you wouldn’t stop wearing shoes just because Payless sold you a shoe that caused your feet discomfort. You can’t hold every company accountable for the actions of one.
One company that made people wary of car warranty scams is U.S. Fidelis. You may have heard of these guys, but if you haven’t, we’ll give you a little background info:
The company U.S. Fidelis was one of the big players in the extended automotive coverage industry about 5-years ago. They quickly earned a reputation for their not-so-great business practices. We’re not trying to bash this company, we’re just stating the facts. Consumers complained of unpaid claims and a difficult cancellation process, among other issues. So what was the fate of U.S. Fidelis? They’re out of business.
Since the exit of U.S. Fidelis in the extended coverage industry, the fear of car warranty scams is all but gone. Associations have been created and to help regulate the industry with strict standards of conduct. However, to some, the fear of car warranty scams is still an issue.
It will take some time to convince every single person that the industry has changed and that there are respectable dealers in the industry. It’s a long road ahead for the industry, but we are up for the challenge.
At Endurance, we are happy to answer any question and dispel any rumors about the extended coverage industry. We stand behind our product 100% and so do our customers. We know you’ll have nothing to worry about with Endurance extended coverage and we know you won’t either with just one call to us! Put your mind at ease and receive peace of mind behind the wheel with Endurance.