When it comes to cars, it seems like there are new scams all the time. Today we want to warn you about a type of scam you should avoid if you have a valid auto warranty.

Police officials and anti-fraud experts say that the add-on insurance scam has become increasingly popular, and they want people to be aware of it so they don’t get stuck buying something they don’t need as long as their car is under warranty.

What happens is, someone will call you up or send you an email “warning” you that your current auto warranty doesn’t cover some types of major repairs. They will then tell you that if you want to be protected, you need to buy their add-on insurance – or you could get stuck with big bills.

Generally, they pressure you to provide your credit card information right away and then charge you on a monthly basis. It can be very difficult to get the charges stopped.

The truth is that nearly every auto warranty covers major repairs. So if your car is under warranty, you have no need at all to buy add-on insurance. And, experts said the add-on insurance companies never really pay out anyway.

So, if your car is under warranty, hang up if someone calls you up to offer you add on insurance. You’ve already paid for your car warranty, so you don’t need it.

If you want to make sure your car is under warranty or shop for a new warranty, you can use our free warranty search service.

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Free Vin Lookup

Vin Lookup

The Vehicle Identification Number is located in many different places on a car. It is very common to appear on the dashboard and/or in the drivers side door sticker. You can do a free VIN look up to check vehicle problems on the button above.