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Sunday, February 27, 2011

Not All Car Warranty Sites are Created Equal|Beware of Affiliates

An extended warranty for a car is very useful and indeed saves drivers much time, money and hassle. It is therefore no wonder that so many new car warranty sites have sprung up across the Internet, and many of these sites have similar names and offers. For instance, their is now a lead company who made a website called usdirectwarranty.com and use it for PPC. They have no affiliation with usdirectprotect.com, number 1 online seller of extended warranties for vehicles, but they obviously are trying to catch consumers off guard. US Direct Protect had one of their agents call the phony outfit and they did try to portray themselves`s as industry leader US Direct Protect.

That is because many car warranty sites are actually lead sites or affiliate sites for major providers of online car warranties. Such sites often offer but a few fixed choices, because their owners know that those are the warranties which their audience will be most apt to choose, or that they are the ones for which the actual warranty providers pay the most affiliate commission. These policies all have weasel clauses or are the same policies with the price inflated.

On the other hand, a true professional site will include a wide selection of car warranties for various makes and models of cars, with various price, feature, length and coverage options. These sites are run by webmasters who are dedicated to their customers, and who therefore make sure to offer the warranties that customers are looking for, at the best possible prices. Beware of 1 or 2 page websites, this is a sure fire way to detect an affiliate or lead company. They sell your inquiry to an Auto Warranty Company that does not have the marketing skills to attract their own inquiries. The customer is now paying the lead companies fee on top of the policy they purchase. Sometime`s this fee alone is $100.00.

When shopping for an extended auto warranty, make sure there are sufficient options for the make and model that you need to protect. One or two basic options is a clear sign that the site you are checking is a lead or affiliate site, as is a small selection of models regardless of whether your own car is included. One question we always tell consumers to ask the warranty company is "How many different Administrators do you carry". If their reply is 1 or 2....run.

Make sure to shop around, and discount any claims made by sites which claim to specialize only in one make or model. Such sites are clearly lead sites that just link to a site that actually offers warranties for several makes and models, but prices which are generated by the lead site could be higher than the prices which would be charged to consumers who go directly to the main site. If a site URL contains the name of one make or model, such as Chevy or Malibu, it is almost always a lead site and it is rare that such a site offers the best option for extended auto warranties.

Car warranties are best purchased from experts who maintain sites that clearly show their understanding of and commitment to the consumer. Affiliate and lead sites are usually operated by small-time webmasters who also operate such sites for tens if not hundreds of other products, from cookware to computer accessories, and they depend on commissions from each sale that only add to the cost of the warranty which you actually need.

Choose your car warranty from a site that lists clear options for different levels of coverage, and which has a comprehensive list of policies available for major makes and models of cars, which of course must include, but should not be limited to, your own car. You will find that a more comprehensive site offers better prices for exactly what you need.

Other online Auto Warranty Companies that have multiple A rated administrators for car owners to choose from is Auto Warranty 411. They have a licensed software that allows them to shop 10 A rated carriers for the best policy. We have heard nothing bad about this organization, nor are their any rip off reports or BBB complaints. Automotive Extended Warranties also has multiple policies at below market pricing. Their website has arguably the most auto warranty related content on it and is a tool used by many in the industry. Car Service Contract is a new comer in the industry who has compiled a long list of A rated Administrators and also has very affordable pricing.

We are going to open this post up for comments. NOT SPAM. If you have an industry related question or have another online company you would like to talk about feel free to leave a comment.

2 comments:

  1. Excellent post. I stop by this blog all the time. I saw this post was up for comment.

    What is your view on Warranty Direct. I`ve been reading alot of bad things about them lately. I notice you made a point about companies that only sell one or two different policies.

    It was brought to my attention the other day by a telemarketer trying to earn my business that the policy I bought from Warranty Direct is the only policy they sell. The Administrator is called Interstate and the telemarketer said they sell Interstate also, but that they also have many other options also. He went on to say that for my Ford Mustang, Interstate was not the best policy I could get. To add insult to injury he had the same exact Interstate policy I bought for 200.00 cheaper.

    I just assumed they were the best option because every term I searched brought them up. I now know from reading this post that I should of shopped around.

    Anyhow. I have not seen Warranty Direct mentioned on your website and wanted to see what this websites opinion was.

    Thank you,
    Darryl from Washington

    ReplyDelete
  2. Darryl,

    Warranty D irect is not the best Auto Warranty Company online. Although they do have a lot of web presence for only selling 1 policy. I`m always weary of auto warranty companies with over 150 complaints over the last 12 months. The entire NWS INC chain, of 4 call centers, has 63 in 4 years. Huge differance.

    Interstate is a great carrier but when you purchase from a company that only sells Interstate well of course they will tell you it`s the best....it`s all they have.

    Car Warranty Review has always recommended any of the NWS Inc chain brokers. US Direct Protect is the most well known and pound for pound they have the least complaints in the entire Auto Warranty Industry. I myself bought one from them.

    ReplyDelete

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