Extended vehicle coverage Equals Uncertainty


We received snail mail notice from CARCHEX who is being represented by Trans Union, Marketing in Woodlyn, PA. CARCHEX advertises themselves as a leading independent firm offering vehicle service contracts. They are not owned or in any way aligned with an auto dealer.

We were informed that we had been pre-qualified for extended vehicle coverage that will cover repairs on our car once factory warranty has expired. William Moore, vehicle protection specialist for CARCHEX, urges us to respond by September 29th, 2015 so they can “shop a variety of vehicle service contract programs to find the best value for your needs.” They attempt to scare one into the purchase by reminding that repair costs continue to rise and without protection car owners will have to pay out of pocket.

I advise all readers to NOT avail of this phony sounding service which does NOT require a vehicle inspection. This should raise a red flag all by itself. Any sucker who purchases such an extended warranty offer runs the risk of faithfully making monthly payments only to be disappointed by fine print that will invalidate a repair claim.

CARCHEX also claims that they maintain an A+ rating from the Better Business Bureau. This comes as a surprise considering the experience of F. Tudor who regretted purchasing a service contract from the Jason Goldsmith (Gold digger) led company.

Albuquerque financial beware columnist Nick Pappas, writes insightfully with the well being of all consumers in mind as he reports the exploitative tactics of hoax companies who prey on over trusting folks.

Suspicious looking extended vehicle coverage solicitation
Suspicious looking extended vehicle coverage solicitation



2 comments on “Extended vehicle coverage Equals UncertaintyAdd yours →

  1. I had bad experience with a vehicle protection plan. They were very professional and informative until after they got my money, which is consistent with quota systems that pay their sales reps. After I wired them the dinero, then nobody gives a crap. Purchasing from them was frustrating. I signed up, sent my money and never received instructions on how to file a claim, etc.

    So I had my starter replaced and alternator repaired, then I called the guy that I bought protection plan from and I asked questions. He told me I should not have paid out of pocket which pissed me off because I had no choice! I asked the dude how to file a claim for reimbursement. He said he wasn’t sure of the process and would transfer me to the claims people.

    I was on hold for 20 minutes and was cut off. I did locate the email he sent me but I didn’t see any provisions how to file a claim, just a receipt for my money and that I supposedly have coverage. I’ve been traveling between South Carolina and Denver and I’ve also been sick but I’m glad for the follow-up. It’s the first indication that anybody really gives a damn about doing anything but taking my money. However, I still don’t know how to file a claim, and nobody seems to be at all concerned how much of a pain in the ass this has been! . I’ve done nothing but pay the money and given a big time runaround.

    1. The commentary of David Velez adds an objective perspective to the automatic negative reaction that many have when considering third party who sells extended warranties on used vehicles.

      U.S. Fidelis probably had largest market share in extended automotive coverage industry circa four years ago. A lot of folks regretted purchasing extended vehicle coverage policies with them due to many things including poor customer service and excessive resistance when claims were filed. The most prevalent complaint was there was no clear cut way to cancel coverage while U.S. Fidelis would continue to auto draft premiums from credit debit card or customer bank account. They are no longer in business because of their deceptive business practices.

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