What are car warranty scams?
In most cases, a car warranty scam involves a scammer either wanting to sell you a fake warranty for thousands of dollars or collecting and selling as much of your sensitive personal information as possible.
Make sure to be extremely cautious when answering calls about your car warranty. The FCC warns that even if a number appears to be authentic, it can still be false.
According to the FCC, a common scam tactic is for the scammer to contact you by call, text or mail pretending to represent a car dealer or an automaker and warn you that your auto warranty is about to expire. A scam call will often start out as a prerecording before having you press a number or stay on the line.
The scammer pitches you to renew your policy, collects as much of your personal information as possible (like name, address, social security number and billing information) and charges you hundreds or thousands of dollars for a fake warranty.
Car warranty scam basics
If you’re not interested in an extended warranty, then avoiding scams is relatively easy — just don’t engage with whoever contacted you. There’s no legal requirement to have warranty coverage, so you can safely ignore anyone trying to sell you one.
If you are interested in buying an extended warranty, though, one of the best ways to avoid being scammed is to understand how the legitimate process usually works. After that, you’ll be better at detecting when something seems off.
There are four main ways to purchase a legitimate extended auto warranty:
- Online, through the provider’s website
- On the phone, by dialing the provider directly using the number listed on its homepage
- From a dealership, though it doesn’t have to be the one that sold you the car
- Through a warranty marketplace, like ConsumerAffairs, which can connect you with different providers
The common thread here is that you are reaching out to the provider, not the other way around. If a “provider” comes to you first, there’s a very good chance it’s a scam. (The ads some car manufacturers now place on their vehicles’ infotainment screens are an exception.)
That’s especially true if someone calls your phone claiming to represent Toyota, Ford or any other automaker. “In general, manufacturers do not call customers to extend a warranty,” said Allison Harrison, an attorney with experience in automotive law. “So anyone telling you they are the manufacturer should be a red flag.”
We never just call random numbers. … We only call once they’ve completed a form online and given us permission.”
Reputable extended warranty companies typically don’t cold call, either. “We never just call random numbers,” an associate with Endurance told us. “We only call once they’ve completed a form online and given us permission.”
Still, things might get a little confusing if you’re shopping for a warranty and you start filling out online forms or requesting quotes. (Some providers, like CARCHEX and CarShield, only sell plans over the phone, and sites with matching services, like ConsumerAffairs, may call to follow up after you’re matched with a brand.)
So, if you start getting calls after you’ve submitted information online, how do you know if the caller is legitimate?
If you use our site to get matched with an auto warranty provider, you can expect a call from them right away. (This is not the same thing as a cold call — cold calls are made without any action on your part.) A ConsumerAffairs concierge may also follow up with you later to see how things went.
How to identify legitimate warranty offers
Legitimate car warranty offers can provide real value, but they’re often hard to distinguish from aggressive or misleading sales pitches. Many scams are designed to sound official or urgent, which makes it easy for consumers to feel pressured. Knowing the signs of a reputable warranty provider can help you make a confident decision.
The following are some tips on identifying legit car warranty offers:
- The company clearly discloses coverage, exclusions, term length and deductibles in writing.
- You’re given time to review the contract without pressure to buy immediately.
- The provider has a verifiable business history, licensing and positive consumer reviews.
- Payment is not required before you receive full contract details.
- Claims are handled through established repair shops, not reimbursement-only promises.
A trustworthy warranty offer should be transparent and easy to verify. If key details are missing or the seller pushes urgency, it’s best to walk away and keep shopping.
6 tips to avoid car warranty scams
It can be difficult to determine if calls or texts about your car warranty are legitimate. Fortunately, there are plenty of ways to verify communication about a car warranty. Here are six effective tips for avoiding scammers.
1. Know how to spot a bot
If the call starts with a generic, prerecorded greeting saying something like, “Hello, we’re calling with urgent information regarding your auto warranty …” it’s almost definitely a scam.
The same goes if it starts with a suspicious, generic greeting like (“Hello? Are you there? Can you hear me?”). These are just an attempt to get you to speak, which verifies that your phone number is active and that you’re a viable target for further harassment.
2. Never give out personal information until you verify the caller
If a caller claiming to represent a legitimate warranty company begins asking you for personal information (full name, address, etc.), don’t answer until you verify who you’re talking to.
In fact, a legitimate warranty company that you reached out to first should already have information on you and your vehicle readily available.
3. Verify the caller using a simple trick
An experienced scammer might be prepared with credible answers to simple questions regarding which company they represent, where they got your number, etc. However, there’s one question no scammer can lie their way through.
“If someone calls claiming to be from a legitimate warranty company, you can always say ‘give me your number and I’ll call you back,’” an associate with olive told ConsumerAffairs. Once you hang up, you can make sure the number they gave you matches the number on the provider’s official website.
4. Ask for a written copy of the warranty agreement
You should always read an extended auto warranty agreement from top-to-bottom before you sign it. You want to ensure it includes the coverage you asked for, doesn’t have surprise fees attached, etc.
Plus, asking for a copy of the policy is a great way to filter out both scammers and illegitimate providers. Unlike scammers, the latter might actually be a licensed business. They just make false or misleading promises over the phone to get you to sign.
So, if you see glaring differences between what the sales representative promised and what the contract actually states, it’s probably best to choose a different warranty provider.
» MORE: How to avoid the worst extended auto warranty companies
5. Don’t comply with pushy sales tactics
If a caller is speaking too quickly or using an overly aggressive tone, they’re either a scammer or a company you don’t want to deal with. (Both scammers and pushy sales reps often try to manipulate reactions out of people before they have time to think.) If you feel pressured, rushed or confused, ask the caller to communicate appropriately or hang up.
6. File a complaint with the FCC
The Federal Communications Commission (FCC) has a webpage for reporting unwanted calls and texts. While the agency doesn't address individual incidents of auto warranty scam calls, the information you provide can help lead to enforcement actions against scammers violating FCC rules.
How to prevent auto warranty scam calls
If you’re aware of what scam calls sound like and you’d just like them to stop, here are some steps you can take.
- Activate the anti-spam settings on your phone: Both Android and Apple phones can utilize anti-spam apps and settings to help filter out fraudulent calls. (Your exact settings may differ based on your device and cellular carrier.)
- Don’t engage with suspected spam callers: A scammer’s robocall might ask you to press a number to be removed from the call list. In a similar vein, a spam text might ask you to type “STOP” to be left alone. In either case, replying to the suspected spammer could do little more than confirm that you’re human and subject you to further harassment. You’re better off blocking or ignoring the number.
- Register your phone number with the National Do Not Call Registry: The National Do Not Call Registry is a database maintained by the FTC. If you log your number there, certain callers (mostly telemarketers) are banned by federal law from contacting you. If they still call after 31 days, you can report them to the FTC. Many scammers, fraudsters and other criminals ignore this rule, but in our experience, adding your number to the database does lower the number of unwanted calls you receive by a noticeable amount.
Legal rights and recourse for scammed consumers
If you’ve been misled or scammed by a warranty provider, you’re not without options. Federal and state laws give consumers clear rights and multiple paths to dispute charges, seek refunds and report bad actors.
Federal and state protections
Several laws protect consumers from deceptive warranty and service contract practices. At the federal level, the Federal Trade Commission (FTC) enforces rules against unfair or misleading advertising, robocalls and false claims about coverage or affiliation. Many auto warranty scams also violate the Telemarketing Sales Rule, which restricts unsolicited calls and false urgency tactics.
State laws add another layer of protection. Most states regulate vehicle service contracts and require providers to register, maintain financial reserves or carry insurance. State attorneys general can investigate fraud, issue penalties and pursue restitution for affected consumers. If a warranty seller misrepresented coverage, failed to honor cancellations or charged illegal fees, these agencies may intervene.
Refund and dispute options
Your first step is to review the contract for cancellation and refund terms. Many warranties allow cancellation within a short window for a full refund, or a prorated refund afterward. If the seller refuses, you may be able to dispute the charge with your credit card issuer or bank, especially if the product was misrepresented.
Chargebacks are often effective when complaints are filed promptly and supported by documentation. In some cases, state “cooling-off” laws or service contract statutes also provide cancellation rights, even if the seller claims otherwise.
How to file a complaint or legal claim
Start by gathering records, including contracts, payment receipts, emails and call logs. File a complaint with the FTC to help trigger investigations and track patterns. You can also submit complaints to your state attorney general’s office and your state consumer protection agency.
If money is involved and informal remedies fail, small claims court or legal aid may be appropriate. For large losses, a consumer protection attorney can help assess whether civil action is worth pursuing.
FAQ
How can I stop unwanted spam/scam calls?
You can stop unwanted spam and scam calls by activating your smartphone’s spam filter, adding your phone number to the National Do Not Call Registry, and never engaging with suspected spam callers or scammers when they do try to contact you. Simply ignore them, block them and/or report them.
What should you do if you actually want to extend your car’s warranty?
If you actually want to buy an extended car warranty, we recommend taking your time when researching companies. Figure out what kind of coverage you actually need, research different warranty companies, comparison-shop for quotes and read your contract thoroughly before signing up.
» GET STEP-BY-STEP INSTRUCTIONS: How to choose an extended car warranty
My car warranty company denied my claim. Did I get scammed?
Just because your warranty claim was denied doesn’t mean you were scammed. Check your contract to verify whether your issue should have been covered. (Many repairs fall under exemptions for preexisting conditions or wear-and-tear, neither of which are usually covered.)
For example, a ConsumerAffairs reviewer from California wrote, “Olive scammed me. Refused to fix my vehicle.” However, olive’s response stated that the reviewer’s repairs simply weren’t covered under their warranty agreement because they included preexisting conditions and parts that weren’t part of their plan. This is one reason why it’s important to understand what a car warranty covers before you buy a vehicle service contract.
If you’ve checked your warranty agreement and you still believe you’ve been scammed (the company doesn’t exist, you never received documents, etc.), you can file a report with the FTC or call the FTC’s Consumer Response Center.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- AARP, “AARP Report: Stress Plays Key Role in Fraud Susceptibility.” Accessed Jan. 10, 2026.
- CBS News, “FCC cracks down on scam ’auto warranty’ robocalls.” Accessed Jan. 10, 2026.
- Federal Communications Commission, “Watch Out for Auto Warranty Scams.” Accessed Jan. 10, 2026.
- Federal Trade Commission, “What to know about auto service contracts and extended warranty scams.” Accessed Jan. 10, 2026.
- Federal Trade Commission, “Report to help fight fraud.” Accessed Jan. 10, 2026.
