The solicitations often come by way of auto-dialed, pre-recorded phone calls, late-night TV commercials or direct mail letters. These ads are often filled with a sense of urgency meant to scare uninformed buyers into action. "Final notice! Your vehicle's warranty is about to expire! Don't go another day without coverage!"
Third-party extended-warranty companies promise to offer peace of mind in the event that your vehicle breaks down. But all too often, their shady practices scam people out of their money instead of giving them real coverage when they need it. Not every extended auto warranty company is out to rip you off, but over the course of our research, we found that the honest ones are few and far between.