Utah Insurance Commissioner Warns on Extended Car Warranty Claim Denials, Outlines Consumer Recourse
Summary
KSL TV reports that the Utah Insurance Department has raised concerns about extended auto warranty providers systematically denying consumer claims without inspecting vehicles or considering certified mechanic assessments. Commissioner Jon Pike advises consumers to review warranty contracts carefully for coverage limitations and maintenance requirements before purchasing, and to file complaints with the Insurance Department or the Division of Consumer Protection if claims are wrongly denied. Utah law allows the commissioner to fine warranty providers caught violating service contract law double the profit made from the incident plus $1,000, and to ban repeat or serious offenders from operating in the state.
“An extended auto warranty provider caught breaking Utah's service contract law can be fined double the profit they made from the incident, plus $1,000.”
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GovPing monitors UT Insurance News for new government general regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 16 changes logged to date.
What changed
This article is consumer reporting, not a regulatory instrument. It does not create new legal obligations but describes existing enforcement options available to Utah regulators under state service contract law. The Utah Insurance Department commissioner is quoted warning warranty providers that rejecting claims without vehicle inspection or mechanic input may prompt action from the Insurance Department or the Division of Consumer Protection. An extended auto warranty provider found in violation of Utah's service contract law can be fined double the profit earned from the incident plus $1,000, and the commissioner may bar repeat or serious offenders from doing business in Utah.
Consumers experiencing wrongful claim denials are advised to file complaints with the Utah Insurance Department and the Division of Consumer Protection. Before purchasing an extended warranty, consumers should carefully review contract terms including coverage scope, exclusions, and required maintenance documentation to avoid claim disputes.
Archived snapshot
Apr 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
What you should know about extended car warranties and how to fight denials
May 2, 2024, 10:13 PM | Updated: 10:25 pm
BY MATT GEPHARDT AND SLOAN SCHRAGE, KSL TV
KSLTV.com
SALT LAKE CITY — One after another, the KSL Investigators heard from Utahns who paid monthly for an extended auto warranty but have not had a smooth ride in their repairs covered.
“I feel like I shouldn’t have got the warranty … if it’s not going to do me any good,” car owner Bona Rosa told KSL after her warranty provider refused to pay out for a broken transmission.
Their experiences have raised a red flag over at the State of Utah’s Insurance Department.
“We just want to always make sure that consumers get what they’ve paid for,” said Jon Pike, the department’s commissioner.
Pike said it’s not okay for extended auto warranty providers to reject claims out-of-hand without inspecting vehicles and ignoring information from certified mechanics.
He believes it is not okay for extended auto warranty providers to reject claims out-of-hand without inspecting vehicles and ignoring information from certified mechanics.
“I think that’s where we and, if necessary, Consumer Protection (Utah Division of Consumer Protection) could come into play,” Pike said. “And say to the company, ‘Are you living up to your end of the contract?’”
Matt Gephardt talking to the State of Utah’s Insurance Department’s commissioner, Jon Pike. (KSL TV)
And Pike said anyone considering buying an extended car warranty has to actually review a contract’s specific terms. They’re packed with loopholes.
“(You) want to make sure that you look at what your contract that you’re signing says,” he said. “So, you know, what your coverage is. What your limitations are.”
Pike said to be sure you know what’s required of you – like proof you followed all the automaker’s guidelines on maintenance to the tee. And if you’re want coverage on a used car, know your claim can be shot down because of issues with the car before you bought it.
“It definitely helps to know as much as you can about the history of the car,” he said.
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And if you’re sure your claim should be approved, but the provider still sticks its guns, file a complaint with the Insurance Department and the Division of Consumer Protection.
“Between the two of us, hopefully we can get them to change their tune,” Pike said.
An extended auto warranty provider caught breaking Utah’s service contract law can be fined double the profit they made from the incident, plus $1,000. The commissioner can also ban a repeat or serious offender from doing business in the state.
KSL 5 TV Live
Meet the KSL Investigators
Mike Headrick, KSL
Investigative Reporter Matt Gephardt, KSL
Investigative Reporter Daniella Rivera,
KSL Investigative Reporter Courtney Johns, KSL Investigative Reporter Sloan Schrage, Consumer Investigative Producer
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