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If you ever have an expensive part fail on your vehicle after the auto warranty has expired, you may be eligible for a little known program often referred to as a “secret warranty”.

What is a Secret Warranty?

Manufacturers usually call it after warranty, a policy adjustment or a good will program. When a manufacturer has a major defect that manifests after the written warranty expires, it establishes an adjustment policy to pay for repairs rather than deal with thousands of complaints on a case by case basis. But the manufacturer communicates the policy to regional offices and/or dealers. The auto manufacturers rarely notify the consumer; so only the consumer who complains loudly enough ends up getting covered by the secret warranty. Often it is the consumer who pays for the manufacturer’s mistake because they never find out about the secret warranty.

Secret Warranty Laws

Currently, no federal law requires auto companies to disclose secret warranties. Five states, California, Connecticut, Maryland, Virginia, and Wisconsin, have made secret warranty laws to protect consumers from undisclosed defects, and other states are considering secret warranty legislation. The state secret warranty laws already created require auto manufacturers to disclose their warranty adjustment programs by giving direct notice of to affected owners.

If you have been denied coverage for a defect that you believe is the subject of a secret warranty instituted by the product manufacturer, contact a Secret Warranty Lawyer today for a free consultation.

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