One of the common ways a used warranty provider can weasel its way out of paying for claims is to have you pay the repair technician and then request a reimbursement from them. I don’t know about you, but this scenario is all too familiar from other situations in my life where I’ve lent money to someone and then either never saw that money again, or had to push my way into getting it back.
I read a funny quote one time that said, “If you lend someone $50 and never see that person again…it was probably worth it.”
However, I’m sure this isn’t the way anybody feels about their warranty provider. First, because you’re dealing with way more money than $50, and second, because you’re not doing them a favor. You are the customer. So before you sign a used warranty contract, ask how they handle paying for their claims and think twice before agreeing to a reimbursement plan.
Think about it. There are so many ways for them to avoid paying you back. They could tell you the claim was denied after you’ve already paid. They could only end up paying a portion. Or they could just drag their feet getting the check in the mail, leaving you to deal with the out of pocket expense for a while.
At Motor Vehicle services, we always pay the mechanic directly for your used vehicle service agreement. You will never have to get stuck paying for something that you didn’t plan to pay for, and I think you’ll enjoy how it takes the guess work out of balancing your pocket book.
