Continental Warranty Offers Tips for Choosing a Comprehensive Car Warranty

Lynnwood, WA (PRWEB) May 18, 2007 -- The type of company that backs an extended car warranty can make a big difference when making a claim, says Continental Warranty, the leading provider of insurance backed car warranties.

The two main underwriters of car warranties are insurance companies and risk retention groups (RRGs). Insurance companies insure a broad range of consumers, products and services and invest premiums, guaranteeing that the funds will always be available for a claim to be paid.

RRGs are liability insurance companies owned by members who engage in similar or related business or activities however, if there is a loss due to excessive claims or inadequate funding for the loss reserve account, the majority of the RRG business will be affected.

"You should always know what kind of company is backing your extended car warranty," said Bob Nelson, general sales manager of Continental Warranty. "At Continental Warranty, we strongly suggest that all of our customers do their research before picking a car warranty provider."

Important things to research before purchasing a vehicle service contract are the rating of the insurance company partnered with the Auto Warranty Company, regulatory oversight, experience and financial strength.

When choosing an extended car warranty provider, consumers should always pick a company partnered with an A-rated insurance company. Insurance companies are rated by agencies such as A.M. Best, Standard & Poor's, Moody's and Fitch on their financial strength, solvency, and overall ability to meet their obligations of protecting their insured in the future. None of the 12 RRGs that specialize in insuring extended car warranties are rated by A.M. Best.

"At Continental Warranty, we only provide extended car warranties backed by some of the most respected insurance companies in the nation," said Nelson. "We have longstanding partnerships with Great American Insurance Company and Lyndon Property Insurance, A Protective Company, both A-rated insurance companies, so we know we are providing quality car warranties to our customers."

Consumers should look at how the insurance company is regulated by the government. Insurance companies must submit reports quarterly or annually to comply with established and approved insurance guidelines. RRGs have little oversight by state regulators and may or may not submit to the jurisdiction of a Department of Insurance in each state.

Lastly, consumers should look at how much experience and financial strength the car warranty underwriter has. Generally, the longer the underwriter has been in business, the more experience they will have. Financial strength is also included in the aforementioned agency ratings.

"RRGs have only been around since 1981. We choose to go with insurance companies that have been doing business for 100 years or more to put our consumers in the most experienced hands," concluded Nelson.

For more information on Continental Warranty's extended car warranties call 866-706-9227 or visit www.continentalwarranty.com.

About Continental Warranty
Continental Warranty is a leading consumer-direct car warranty company that offers comprehensive car warranty coverage by established and reputable insurance providers at wholesale prices. For almost 20 years, Continental Warranty has been helping consumers all across the country save money and gain peace-of-mind with affordable extended car warranties by cutting out the middleman and selling directly to the consumer. Continental Warranty provides broad coverage for most makes, models or budget with value bonuses such as free roadside assistance, car rental and trip interruption benefits.

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