Vehicle Warranty Policy
BUYER BEWARE
PRODUCT WARRANTIES vs. EQUIPMENT WARRANTY INSURANCE POLICIES
There is currently a host of telephone marketing campaigns being conducted in Alberta which offer to provide a product that is described as having the ability to extend the warranty on your vehicle.
The majority of these are not Equipment Warranty Insurance Policies as described below. Most of the products being offered are in fact product warranties and are not contracts of insurance. In these cases you are actually purchasing an engine or coolant additive which is described as having the ability to reduce the risk of mechanical failure in your vehicle. The product manufacturer provides a warranty with their product which will pay for repairs to your vehicle should it experience a mechanical failure as a result of their product not performing as expected. These products can range in price from a few hundred to several thousand dollars. Sellers of these products are not required to hold an authorization from the Alberta Insurance Council.
Facts Concerning Equipment Warranty Insurance Polices (Extended Warranty)
In Alberta, many automobile dealers and other businesses offer equipment warranty insurance policies (extended warranties) which provide coverage on a motor vehicle, or recreational, marine, farm implement or construction equipment against losses arising from the mechanical failure. These equipment warranty insurance policies are contracts of insurance and must be produced by an insurance company licensed to transact business in Alberta.
Insurance policies of these type must also be sold by an individual or business authorized by the Alberta Insurance Council to sell these products. Sales of these types of products are generally offered by the dealership where the vehicle was purchased. The contracts are usually sold to extend coverage for mechanical failure on used vehicles or equipment.
If you have been approached to purchase one of these contracts and would like to confirm that the individual or business offering to sell this style of insurance is authorized to do so you can check the status of that individual or business on this web site by searching through the following link
If the individual or caller is reluctant or simply refuses to provide you with their name or the name of the business they represent so you can confirm their status with the Alberta Insurance Council there is a high possibility that your are being solicited by someone other than an authorized seller of an insured "Equipment Warranty Insurance Policy".
March 2009