What Is A Car Warranty Administrator?

car warranty administrator

Knowing your extended car warranty Administrator is, as well as who they are backed by (the insurer), is one of the most important parts of making sure you’re getting a service agreement that will pay for itself.

What Is A Warranty Administrator and Why Does It Matter?

You car warranty Administrator is the company who is responsible for authorizing and paying for your warranty work. Always make sure that your extended warranty’s administrator is protected and underwritten by an A-rated (A rated is even better) insurance company. If you don’t do this it will cost you A LOT of money further down the road.

Some extended warranty service agreements will be underwritten by the same company that sells you the warranty. It is a good idea to stay away from companies that do this, unless you are actually buying the warranty directly from a highly-rated insurance company.

What does the Insurer that backs the Administrator actually do?

The Insurer makes sure that the car warranty Administrator is properly handling claims. They guarantee the warranty Administrator’s financial obligations and make sure that your claims are still resolved, even if the Administrator becomes unable to pay them.

If your warranty isn’t backed by a top-tier insurance company, and car warranty administrator, you can be left out in the cold if the company that sold you the extended warranty goes out of business or closes for any reason.

Now if your service agreement IS backed by an A-rated insurance company, you will be able to still get your claims paid or get a refund on the unused portion of your extended warranty if anything ever happens to the company that sold it to you.

How do I find out an Insurer’s rating?

You can visit the A.M. Best website. A.M. Best has been around for about a century, and they analyze and evaluate thousands of insurance companies then report their financial stability.

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