If you’ve got an expensive vehicle, you may feel overwhelmed by all the options for protecting it and minimizing your costs going forward. How do you figure out which are scams and which are legitimate services that will save you money?
Before taking out any sort of protection on your vehicle, you should spend some time reading the reviews other customers have left about the service. It’s best to reach out to companies yourself and avoid listening to unsolicited offers, which are often for useless services. You should also thoroughly research the company you are considering taking out a policy with.
In this article, we’re going to check out everything you need to know about vehicle scams, getting a vehicle protection plan, and how you can find the right schemes to cover your car. This should help you save money and reduce your risk of taking out a useless policy.
How Do You Spot A Scam?
First, let’s look at how you can tell when a company is scamming you outright. A lot of people confuse poor-value policies for scams, but they aren’t (and we’ll cover the ways you can avoid those in the following section). How can you tell if a company is attempting to scam you and steal your money or personal information?
In most cases, if you receive a robocall about your car’s extended warranty, the best thing to do is hang up. Over the phone, you have no effective ways to verify who you are talking to and what they might do with any data you give them. You can’t check the information they are giving to you.
Additionally, you won’t have sufficient time to think and review, and you won’t be able to look at the offer in writing. If the call requests any payment information from you, it is a scam; legitimate companies will present you with something in writing before they request any money.
In general, if a company reaches out to you about your car’s extended warranty, it’s a good idea to treat them with suspicion. If they are a legitimate company, they should be able to direct you to a website where you can review their policies and plans at your leisure, and they will not require any personal details to do this.
Avoid giving any personal information over the phone unless you have contacted the company yourself. You can always review the company website and call them back later if you decide you are interested in their services, reducing the risk of being scammed.
Should You Consider An Extended Warranty?
There are a lot of companies out there offering “extended warranties” for cars. On the surface, these sound great; they say they will protect you if a part in your vehicle fails and you face big repair bills. These schemes often talk about what you fear most in car repairs – engine failures, transmission problems, and more.
An extended warranty is something you need to do extensive research into before you take it out. Many warranties appear to offer good value at first glance, but when you actually need the service, you find that you aren’t protected the way that you thought you were. Reading the fine print is critically important with these warranties.
Even legitimate extended warranties can have problems, including:
- Only covering a low dollar amount (leaving you on the hook for the rest)
- Denying repairs because you haven’t maintained the vehicle according to their standards
- Inclusionary policies, which only cover a limited number of parts, rather than all of your vehicle
That’s not to say that all extended warranties are useless, but you should do thorough research before you decide to purchase one. Read about other customers’ experiences, and find out as much as you can about the company and its offerings before you take out a policy.
What About RED Shield Administration?
RED Shield Administration offers vehicle protection plans, which can help you get your vehicle repaired when something goes wrong. These plans also come with roadside assistance and rental car options, making it far less stressful and problematic when you break down because you can get on the road again as quickly as possible.
The company makes claiming your vehicle protection plan super easy, with a simple claims form as the homepage of their website. They offer a variety of plans for different budgets, but all of them offer a minimum dollar amount, and the roadside assistance mentioned above.
If you’re not sure what protection plan you need, you can chat with one of the agents about your situation, and they should be able to guide you toward the right options. They prioritize fast responses and deal with urgent claims quickly to help you get back on the road.
A vehicle protection plan can give you significantly more peace of mind and financial protection – although it’s still important to understand the terms of what you’re signing up for before you agree to anything so you don’t end up with problems later.
Extended warranties can be problematic, and there are a lot of scams, although there are also legitimate options out there for customers to choose from. A vehicle protection plan, like the ones RED Shield Administration offers, may provide you with a simpler solution, giving you protection from big bills and ensuring you have roadside assistance when you need it the most.