Can I get a refund for my car's extended warranty? One Western Pennsylvania woman shows how it's done
People purchase them for both peace of mind and protection from costly repairs but extended car warranties are only good for as long as the car is parked in your driveway.
"It was the principle of the thing that you're ripping people off and they don't even know," said Dianne Nemchick, a Greensburg resident.
Nemchick shared her story hoping to warn people about a simple mistake.
Most people have been there, it's time to trade in your car so you clean it out, grab the garage door opener, and make sure there are no papers left in the glove box. Then, you ask yourself, "did I buy an extended car warranty?"
For Nemchick, years of working as a secretary came in handy because she is extremely organized.
"Whenever I have anything done to the vehicle, it's all in there," she said. "This way if the warranty company says, 'Well, we're not going to cover that, you did the maintenance, you'll find it,'" she said.
In a manila folder filled with everything related to her old Jeep that she turned in this past fall, the one thing she didn't ask about was a refund for her extended warranty.
"It was 10 years, 100,000 miles and my car was eight years old when I turned it in and only had 74,000-something, so I had 25,000 miles left or two more years, so they prorate the amount that they'll give you," Nemchick said.
Her refund check just arrived in the mail and it was for more than $600.
While she's happy to have the check, she's kicking herself that it's the first time she's ever asked.
"We leased vehicles, we purchased vehicles, we took out extended warranties for all of them, we never knew that there was a refund," she said.
Caitlin Driscoll of the Better Business Bureau said she's not alone. It's up to the consumer to remember the boring ins and outs of these contracts.
"Find the paperwork for your policy, read that fine print, see who you need to contact to cancel, and if there's any kind of cancellation fee, this can be typical but also varies, depending on upon the policy along with a specific process to initiate that cancellation or request for a prorated refund," Driscoll explained.
Driscoll wants consumers to know the following steps when it comes to your extended warranty.
- You may need to fill out a cancellation form
- Get a copy signed by the dealership or the warranty company
- Always save copies of any forms, letters, or documents
- Continue to follow up on the cancellation status
- Ask for a time estimate for the cancellation refund check
She added that not everyone needs an extended car warranty.
"Definitely review and understand your actual manufacturer's warrant first," she said. "If you have one, still included, because in some situations an extended warranty could provide overlapping coverage that you might not really need. Just be aware of any potential exclusions because this really can vary. That might make a plan less valuable to you as the consumer."
Nemchick's now driving her new Jeep with another extended warranty and while she did get the refund on her last one, she said she wouldn't call the process to get it a smooth one.
"I was surprised, very surprised, but I am still questioning how many people did this happen to and why," she said.
She thinks she got her money because she kept all of her documents and continued to advocate for herself.
"I really don't have that much time, I am busy with family and things, but I just took the time because it was the principle of the thing," she added.
If you're committed to buying an extended car warranty, don't forget to shop around because not all plans are created equal. The BBB said also beware of claims of "bumper to bumper" coverage because that doesn't necessarily mean every single problem will be covered.
