Royal Gives Tips in Avoiding Extended Warranty Scams

Royal, an auto insurer based in New Jersey, is sharing tips on who vehicle owners can avoid falling prey to extended warranty scammers.

The Better Business Bureau and the Consumer Reports have raised alarm on the rising cases of extended auto warranty scams that victimized unsuspecting car owners across the United States.

Back in 2016, the Federal Trade Commission refunded a total of $4 million to 6,000 car owners who were duped into buying service contracts worth between $1,300 and $2,900. The vehicle owners were made to believe that the calls and emails they received came from their car manufacturers and dealers.

The auto insurer explained that service contracts offered by these scammers are designed to milk the consumers out of their hard-earned money. Car dealers also have their own service contracts which are offered in lieu of warranties but it’s a buyer’s beware market.

Service contracts are not illegal per se since these are arrangements that will allow the third-party company to shoulder the cost of repairs, which are already covered by the car warranty anyway, during the duration of the contract. In fact, these scammers are not offering the auto warranty coverage but just the service contracts on behalf the third-party issuer.

However, the consumer should know what he’s signing up for before agreeing to the terms of the service contract so that he won’t end up paying for a worthless paper.

In order to avoid being victimized by the modus, make sure to check the expiration date of the warranty. If you can’t find the documents, contact your dealer directly to find out when your warranty will expire instead of just believing the word of a stranger.

Don’t believe the reported offer of the extended auto warranty expiring in 24 hours or any narrow window in order to makea decision. This is just a ruse to pressure the consumer into signing the service contract without reading the small print.

Finally, research the background of the company. If you can’t find any information online regarding its operations, much less its very own website, that’s already a red flag that you should stay clear. Royal is certified by Better Business Bureau, for example, which speaks of its legitimacy.

The Royal Protection Planrefers to the extended auto warranty coverage, which differs slightly from other premiums because the vehicle owner is not required to bring the car to one of their certified garage shops. This means that the consumer’s options are not limited.

For more information or a quote please visit Royal Protection Plans website at: