Vehicle History: Federal, Not State Law Should Govern Auto Warranties

Currently, there are no federal laws governing auto warranties and how they are applied. Instead, they are set by individual states and have little to no consistency. When a driver buys an auto warranty, they should be confident in what it will cover.

Las Vegas, United States – March 24, 2016 /MarketersMedia/ —

The company has concluded that contradictory auto warranty laws in different states are bad for consumers.

Vehicle History, a website that looks after the interests of consumers in relation to the auto industry, believes that there should be federal laws to standardize the practices of auto warranty companies.

The company’s stance is prompted by a lawsuit filed by the Alliance of Automobile Manufacturers against the State of Connecticut, which argues that local laws will increase warranty costs to dealerships that will eventually be passed on to consumers.

“While we take no issue either way on this current suit, we do think that it brings to light a larger issue – that auto warranty laws vary greatly from state to state, and that’s bad for consumers, dealerships and automakers alike,” said Vanessa Hernandez, a Vehicle History spokeswoman. “The truth is a car owner could pay for a certain level of coverage in one state ,but then have considerably less coverage if they were to move to another state. That does not seem fair.”

Currently, there are no federal laws governing auto warranties and how they are applied. Instead, they are set by individual states and have little to no consistency, she said.

“When a driver buys an auto warranty, they should be confident in what it will cover,” she said. “And having a patchwork of laws is not helpful to anyone. It makes it very easy for special interest groups to mold local laws to their advantage. We don’t believe that this behavior ultimately benefits the consumer.”

States’ rights advocates have long argued that auto warranty laws are not subject to federal jurisdiction.

“We believe this argument to be on the wrong side of the law,” she said. “The federal government has the right to regulate interstate commerce. Given how often people move around the country, and that they obviously take their cars with them, from the research we’ve done, we have concluded that auto warranties are certainly subject to the interstate commerce clause of the Constitution.”

About VehicleHistory.com:

VehicleHistory.com was created to serve the needs of public records clients across North America. With thousands of requests processed each day, VehicleHistory.com continues to grow as a reputable customer service resource.

Visit the secure website at VehicleHistory.com for a free VIN lookup, call 1-855-730-5194, or use our contact form to email us with any questions or concerns.

For more information about us, please visit https://www.vehiclehistory.com/

Contact Info:
Name: Vanessa Hernandez
Organization: VehicleHistory.com
Address: 10777 W. Twain Ave Suite 125
Phone: 18557305194

Source: http://marketersmedia.com/vehicle-history-federal-not-state-law-should-govern-auto-warranties/108295

Release ID: 108295