WHAT DOES THAT MEAN TO ME?
It means that a licensed insurance company is in place to protect you from financial loss in the event that the warranty provider goes out of business.
WHO’S AT RISK?
Many warranty providers offering their products and services today have NO INSURANCE BACKING. Therefore, just when you need them, they may be gone, with no money left behind to honour claims. If you are the warranty holder, you could wind up holding a worthless piece of paper that you might have paid hundreds of dollars for; if you are the car dealer who sold or included the warranty, in some provinces, you must legally honour all claims out of your own pocket; and if you are a repair garage who was authorized to carry out repairs under the warranty, you could be faced with a very large receivable that will not be paid!
WHY TAKE THE RISK?
In the majority of provinces, the warranty industry is unregulated. That’s right – anyone can start up their own company and start selling ‘promises’ right away – no license or insurance is required. So, if you decide to buy an uninsured product, you are trusting that they will set aside a good portion of your money for future claims, AND that the amount will be sufficient, AND that they will not just ‘disappear’ with all the money! Don’t kid yourself that these things can’t or don’t happen: in the years that Lubrico has been in business, more than 20 warranty companies have failed for a variety of reasons, several of which caused a great deal of ‘financial pain’. The result is today’s situation, where many companies cannot secure insurance backing for their warranty products.
HOW DO I ELIMINATE THE RISK?
Deal exclusively with a fully-insured company – one who has a licensed insurance company, regulated by the government – to cover you. Everyone must pay a little bit more for an insured product, but we think it’s well worth it!
Experience is an excellent teacher! We at Lubrico Warranty have been offering used car warranties/service for over 30 years, enabling us to offer the right coverage, at the right price, with the security of insurance protection provided by Northbridge General Insurance Corporation, a subsidiary of Northbridge Financial Corporation.
Buy with confidence! Make certain it’s insured!
