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When asked whether after-market warranties save people money, the reaction was mixed quite evenly among respondents, with 37 percent saying after-market warranties do not save people money, 34 percent saying they do save people money, and the remainder undecided.
"Auto warranties can be confusing to many people, especially those unfamiliar with buying cars," said Dr. Regan Carey, morefocus Research Director. "An after-market warranty is going to be cheaper upfront than a factory warranty, so a lot of people will gravitate towards that without really doing the math on what it might cost them in the long run."
The survey also explored people's experiences when having to file a claim with an auto warranty. Thirty-eight percent of those surveyed said they have filed a claim with an auto warranty, and most, 77 percent, said they were satisfied with the handling of the claim. Those with factory warranties reported being more satisfied, though only very slightly, with the handling of a claim than those with after-market warranties.
"Interestingly, it seem that when a person does have to file a claim, they are usually pleased with how the claim was handled," said Dr. Carey. "So, the dissatisfaction with warranties, particularly after-market warranties, likely stems from other things such as coverage and cost."
The morefocus survey was commissioned Warranty Activation Headquarters
. Further information and summary results of the survey are available on request from morefocus.