Press Release

Friday, April 6, 2018

Attorney General Lori Swanson Sues AutoAssure Over Deceptive Car Warranty Sales

Attorney General Lori Swanson today filed a lawsuit against AutoAssure, LLC, a Texas company, for deceptively selling costly and often unnecessary car warranties to nearly 1,000 Minnesotan residents, in some cases falsely telling people the factory warranty on their vehicle had expired, the company or the contract was affiliated with the car’s manufacturer, or that the service contract covered “everything” despite containing dozens of exclusions.

“These contracts are expensive and may contain dozens of exclusions for everything from mechanical problems resulting from normal operation of the car to a list of non-covered parts,” said Attorney General Swanson.

To get people to call the company, AutoAssure sent mass mailings to Minnesota residents under the name “Vehicle Services Department,” claiming that the manufacturer’s warranty on the consumer’s vehicle was about to expire and that they must contact AutoAssure to “update” their repair coverage, even though some people had years or thousands of miles of repair coverage remaining. 

When people called the company, AutoAssure often made a number of deceptive statements to sell people a warranty.  For example:

The service contracts sold by AutoAssure cost about $3,200 on average.  The lawsuit includes examples of the company’s sales tactics, such as:

The lawsuit was filed in Hennepin County and seeks injunctive and monetary relief.

People may report complaints to the Minnesota Attorney General’s Office by calling (651) 296-3353 or (800) 657-3787.  People may also download a Complaint Form by clicking here, and mailing the completed form to the Attorney General’s Office at: 445 Minnesota Street, Suite 1400, St. Paul, MN 55101-2131.


Related

Motor Vehicle Service Contract Offers

Many people report receiving postcards and mailings that claim that their manufacturer's auto warranty is about to expire. Some of these warranties, however, are issued by companies that may become insolvent or don't provide coverage for needed repairs.