Reviews

[14 Dec 06] :: After-Market Auto Warranties

More people are dissatisfied with after-market auto warranties than with factory auto warranties, according to a new survey conducted by morefocus, an online research organization. Almost 30 percent of those surveyed reported being dissatisfied with their experience with after-market auto warranties, compared to only 10 percent who reported being dissatisfied with factory auto warranties. When asked whether after-market warranties save people money, the reaction was mixed quite evenly among respondents, with 37 percent saying after-market warranties do not save people money, 34 percent saying they do save people money, and the remainder undecided. "Auto warranties can be confusing to many people, especially those unfamiliar with buying cars," said Dr. Regan Carey, morefocus Research Director. "An after-market warranty is going to be cheaper upfront than a factory warranty, so a lot of people will gravitate towards that without really doing the math on what it might cost them in the long run." The survey also explored people's experiences when having to file a claim with an auto warranty. Thirty-eight percent of those surveyed said they have filed a claim with an auto warranty, and most, 77 percent, said they were satisfied with the handling of the claim. Those with factory warranties reported being more satisfied, though only very slightly, with the handling of a claim than those with after-market warranties. "Interestingly, it seem that when a person does have to file a claim, they are usually pleased with how the claim was handled," said Dr. Carey. "So, the dissatisfaction with warranties, particularly after-market warranties, likely stems from other things such as coverage and cost." The morefocus survey was commissioned by the publication AutoWarrantyHelp.com. Further information and summary results of the survey are available on request from morefocus.

posted on 14 Dec 06 @ 11:26 back to news