Consumer Beware Usfidelis Extended Warranties not so Good
You may have seen a series of ads promoting the extended warranty services for your vehicle provided by Usfidelis. While it may seem at first glance like a good deal, the Better Business Bureau is concerned about the number of issues surrounding the company. Supposedly, under the Usfidelis extended warranty, your expensive vehicle repairs can be paid for in full. You can also have the added benefit of roadside assistance should your vehicle ever bread down while you are on the road.
The premise of Usfidelis is that for your new and used cars, you can coverage to repair your vehicles. The vehicles must be under 15 years old and have less than 200,000 miles to be eligible. What is called extended warranty service turns out to be little more than a prepaid repair bill. Usfidelis will pay the repair bill on your behalf minus a deductible you have to pay.
Usfidelis sells such plans for other independent vendors. On the website, there are four categories for which you can get coverage, including bumper-to-bumper coverage for new cars and a powertrain protection plan. Consumers who have contacted the company regarding coverage information complain about the inability to read coverage contracts before signing up. In essence, consumers must sign up first but have the capability of canceling the contract under the 30-day money back guarantee. Others have complained that there was pressure to sign up over the phone right away. Customer service representatives have allegedly lowered pricing considerably during the initial phone call but repetitvely stated that not only would the price get higher if they waited, there would also be an inspection by a licensed car dealer required to check for pre-existing mechanical problems with your vehicle. Note that this required inspection is not required if you sign up by phone right away.
The Better Business Bureau has received many complaints about the company, specifically citing the difficulties in canceling the services, acquiring refunds, and even failure to pay for repairs to policy holder's vehicles. The company has also be accused of misleading advertisements, namely that they have used letters to consumers that claim their vehicle warranties were due to expire. They have also been charge with violating the Do Not Call laws, though the company now claims they no longer use telemarketing and are working on clarifying their advertisements.
Essentially, experts advise consumers that the cost of repairs is often less than the cost of extended warranty coverage. Plus, there is also a greater risk for dealing with companies such as Usfidelis because such companies are not regulated in the same manner as traditional insurance companies.
