When purchasing an extended auto warranty, one
of the most important things to research is the insurance company
backing the warranty policy. Don't confuse the insurance company with
the company you purchased the warranty from. Most auto warranty companies,
especially ones online use an RRG to back their policies. We don't
recommend using an RRG, given that they are not federally regulated
and are not required to participate in a State Guarantee Fund. We
only recommend direct write insurers. They work very similar to housing
and auto insurance companies.
