• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Automobile Extended Warranty

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

K

kmraz48

Guest
I live in Phoenix, AZ. I purchased an extended warranty on a used car two years ago from a local dealership. There is approx. 1 year or 20,000 miles left on this warranty. On a recent visit to the dealership I was informed that the warranty company was filing bankruptcy. The dealership says they will still file claims but I must pay for any claim and try to get my money back from the warranty company. I contend that the dealership is their agent and they should cover the cost as before and be reimbursed from the warranty company. What is my legal position here?
 


racer72

Senior Member
The dealership is correct. As you stated, the dealer is an agent for the extended warranty company and laws protect agents from the actions of insurance companies. As with any type of insurance, the insured is always the responsible party to make sure the bill gets paid. And you are now considered a creditor to the warranty company and may make a claim for the outstanding premiums paid for the period the coverage is lost.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top