Toyota Used Cars Extended Warranties

toyota ext warrantyExtended warranty companies are beginning to realize that their products are being widely viewed by the Courts as insurance policies and not as traditional product warranties. For this reason, many of the extended warranty companies are creating various schemes to deceive Oklahoma consumers by hiding the true identity of the companies responsible for paying the extended warranty claims. These extended warranty companies also are claiming that their products are free of charge when in fact the price of the insurance coverage is hidden in the prices of the cars.

One such example of this deceptive practice is the Toyota extended warranty known as a Limited Power-Train Warranty available on all Certified Used Toyota vehicles. Consumers should know that on all Toyota warranties, not provided by the manufacturer, are not warranties at all, but instead are in fact insurance policies issued by Toyota Motor Insurance Services. This company is owned by Toyota Motor Corporation and is in fact engaged in the sale of insurance products and extended warranties related to certain used Toyota vehicles.

The deception employed by Toyota Motor Insurance Services is two-fold. First, the consumer pays a hidden fee for the “Limited Power-Train Warranty”. This fee is not disclosed to the consumer. In fact, Toyota dealers inform consumers that the “Limited Power-Train Warranty” is free to the consumers because the used Toyota vehicle has been “Certified” by Toyota. The fee is actually an insurance premium that is being divided between Toyota Motor Insurance Services and a third-party company, which handles the insurance claims for Toyota. Second, Toyota does not intend to pay large claims, such as engines and transmissions, on the same ratio as smaller claims, such as starters and alternators. In fact, Toyota does not perform any type of internal inspection of the engines and transmissions prior to classifying their vehicles as “Certified Used Toyotas”. This means that many of their “Certified Used Toyotas” may have pre-existing defects or conditions, which would result in denied claims.

In addition to Toyota, many other car-makers offer their own lines of extended warranties, and it is important to know that if the car-maker charges a fee, hidden or obvious, then the extended warranties are actually insurance policies. Also, the extended warranty industry is exploding with internet sales and new companies are being created to take advantage of the auto insurance dollars paid by Oklahoma consumers. Toyota Motor Insurance Services is just one example of an extended warranty company failing to disclose the true nature of the extended warranty contracts it sells to Oklahoma consumers. The multi-billion dollar a year industry is full of dishonest companies, who sell extended warranties and other insurance products with no intention of paying legitimate claims.

Feel free to schedule a free consultation online or call The Bennett Law Firm at 405.272.0303 to discuss your legal options with an experienced Oklahoma City lawyer today. No Recovery, No Fee! We will meet with you face to face and can handle cases anywhere in Oklahoma. We can even come to you!