Circle Auto Protect Blog

Is an Extended Car Warranty a Scam? What You Need to Know About Reputable Extended Car Warranty Companies

Oct 02, 2019
Michael Robinson

Here’s a truth: if an extended car warranty offer sounds like a scam, it probably is. The good news is that there are several reputable extended car warranty companies out there.

Here at Circle Auto Protect, we make it our mission to be the best-extended car warranty company possible.

However, we know that, unfortunately, there are some bad actors in the auto warranty space. That’s why it’s good to do your research and know what you should expect from a reputable extended car warranty company.

If you’re considering purchasing an extended car warranty, and you want to know what to look out for in order to avoid a scam, keep reading:

A Sad Extended Car Warranty Scam Story 

Unfortunately, we’ve heard some sad scam stories in the extended car warranty business. Here’s an example (with names and certain identifying details changed for privacy)

January – Bob buys a three-year-old car from a local dealer. He is offered an extended car warranty, and he likes the idea of coverage for potential auto repairs, so he agrees.

June – Bob’s check engine light comes on. He takes his car to be fixed, but because he doesn’t bring it back to the original dealer, he has to pay for repairs and wait to be reimbursed. It takes 3 weeks of calling before Bob finally gets the reimbursement check.

August – Bob’s car needs more repairs, this time for the brakes. Because of what happened last time, he brings his car to the dealer, and they tell him they’ll give him a call when it’s ready. Bob remembers he left his golf clubs in the trunk, so he goes back to the dealer to get them, and finds out the dealer has outsourced his car to a local shop. 

(This is a way that shady car dealers can make more income on customer repairs).

November – Bob’s wife gets a new company car, so he decides to sell his car and drive her old one instead. Unfortunately, the extended car warranty can’t be transferred and he must forfeit his auto protection with the car. 

Why Circle Auto Protect is Different

Luckily, if you purchase an extended car warranty with Circle Auto Protect, you will NOT have to go through what Bob did.

Here’s why you know you can trust Circle Auto Protect:

•    We work directly with your dealer or an ASE-certified facility, and your car can be serviced at any ASE-certified repair shop nationwide.
•    30-Day Money Back Guarantee on all our plans. We encourage you to shop around, and if you’re not completely satisfied for whatever reason, we will offer you a full refund, hassle-free.
•    We offer 24/7 roadside assistance and car rental service.
•    Possibility to transfer your vehicle service contract * if you sell or change cars.

To find out how to get the extended coverage you need, just give us a call at: 833-247-2530 (833-CIRCLE0).

Or, you can get a quote right on our website!

*Note: Circle Auto Protect is a Vehicle Service Contract (VSC) provider. While a VSC is often commonly referred to as an “extended warranty,” it is not, technically, a “warranty”. A VSC does provide auto repair coverage for your vehicle after the manufacturer’s warranty expires, and also includes other services as specified in your coverage plan.



Vehicles up to 140k miles are eligible for our Auto Plans.

Get Covered Today