Five Misconceptions about the Best Deals for Extended Warranty Insurance


Australian citizens are technically and lawfully well-protected under the Australian Consumer Law (ACL) and The Australian Competition and Consumer Commission (ACCC) when it comes to purchasing vastly expensive things like cars. Unfortunately, many salespeople are not well-versed with the ACL and ACCC, in some cases deliberately ignoring or twisting their legislature in order to exploit consumers. Getting an Allianz comprehensive car insurance quote will ensure that you get the straight facts, strictly in accordance with the ACL and ACCC’s bodies. However, it is important to know the truth yourself, so here are five of the biggest errors people make when searching for the best extended warranty deals.

  1. Being asked to sign documents for ‘third parties’

This is a common tactic – which many companies utilize in order to pry themselves out of responsibility – should a car break down or malfunction. Many consumers, when purchasing a car, will be requested to sign forms pertaining to insurance policies involving companies other than the core dealership and actual car manufacturer. This sneaky tactic forces consumers to pay extra funds in the case of an insurance claim to these extra parties, which one is contractually obliged to do so due to a few unfortunate signatures. Consumers should only sign extended warranty insurance forms from the dealership and the car manufacturer. Getting an Allianz comprehensive car insurance quote will provide all of the necessary information required, hassle free, providing the best deal extended warranty.

  1. You are still protected by the ACCC even if you do not sign up for an extended warranty

This is something that many people surprisingly do not now, and many consumers are intimidated and defeated by aggressive companies turning them and their issues away due to not having signed up for an extended warranty, which is a complete fallacy. Then there is also the excuse of a time limit on a now expired warranty. None of these nullify your Consumer Guarantees, and the ACL will consider how much was paid for the car, estimated breakdown and failure occurrences, claims stated within advertising and environmental conditions in which a vehicle should correctly operate in. A company’s extended warranty is an addition to an ironbound set of laws, not a legal authority.

  1. Having the ACCC service my car will void my warranty

You are in no way obliged to have your car serviced at the dealership of purchase, and a failure to do so in no way jeopardizes your warranty, any statutory warranty confined to a state or territory and any of your rights to do with Consumer Guarantees.

  1. The ACCC is a viable option for repairs

Should you encounter defects in a car covered by an extended warranty, sending it into the ACCC for repairs is often a viable option for dealerships, the ACCC then doing the work on behalf of the dealership. This is, however, ultimately the manufacturer’s decision. In any case, consumers need to know that their dealership is not the only option.

  1. Dealerships will often enable a warranty on top of the manufacturer’s

In many cases, a dealership will activate a warranty on top of the initial manufacturer’s service plan. Whilst people will generally be made aware of this second stipulation, many will be oblivious of some of the more subtle fine print, which will often lead to one paying out extra for regulations they weren’t even properly made aware of. Whilst dealerships are usually being lawful with this second act, there is often ambiguity loaded in such paperwork.

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