Individuals and businesses can lose several thousand dollars in repairs by warranties sold through unlicensed companies
Sacramento, Calif.—California Insurance Commissioner Ricardo Lara has issued Public Service Announcements (PSAs) to warn California consumers and businesses about insurance scams involving unlicensed sellers of insurance, including robocalls selling extended vehicle warranties.
The California Department of Insurance estimates that unlicensed activity costs Californians tens of millions of dollars every year. One example of this is the Californians who have paid thousands of dollars for vehicle extended warranties illegally sold by unlicensed companies, only to have their claims improperly denied and then having to pay again for expensive repairs. Individual losses of several thousand dollars per victim can add up to massive fraud.
“We have all gotten those phone calls trying to sell us an extended vehicle warranty,” said Commissioner Lara in one of the PSAs. “What a lot of people don’t know is that’s illegal in California.”
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