Jul 30, 2009 -- Extended auto warranty provider USfidelis stinks
USfidelis is perhaps the most heavily marketed extended auto warranty in the country. Consumer Reports has investigated this popular outfit and is warning people away from them.
According to the publication, USfidelis has failed to respond to more than 1,000 complaints from the Better Business Bureau. Among the complaints are gripes about the difficulty of canceling the warranty; obtaining a refund; the nature of the company's misleading ads; their misrepresentation of coverage; and their failure to remove customer names from mailing lists.
In addition, Consumer Reports reveals that USfidelis told them customers are not allowed to see their contract until after they purchase it. What's up with that?
Of course, many of these problems are not necessarily specific to USfidelis. They also plague the smaller players in the extended auto warranty business. USfidelis just happens to be the top dog, so that's why they were singled out.
Let's take a moment and review. If you can afford the potential cost of a car repair, you should never buy an extended warranty. But if you're unable to budget and save for repairs, then you should only consider buying the manufacturer's own warranty. Do not buy any third party warranty.
And if you stick to Consumer Reports' annual recommended list of vehicles, you shouldn't have to buy an extended warranty at all -- even if you have budgeting difficulties. The odds are such that their recommended vehicles won't have severe problems over time.