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Mopar Extended Warranty for California

326 Views 8 Replies 4 Participants Last post by  wingler
I was on a website Mopar Maximum Care. Ultimate warranty coverage. to get a quote for an extended warranty for my 2022 Giulia Veloce. I noticed that there was no selection for California when prompted to select the State you are in. Got a message that they are no longer offering to California residents (??!!). Has anyone had this issue?

Thanks in advance
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I was on a website Mopar Maximum Care. Ultimate warranty coverage. to get a quote for an extended warranty for my 2022 Giulia Veloce. I noticed that there was no selection for California when prompted to select the State you are in. Got a message that they are no longer offering to California residents (??!!). Has anyone had this issue?

Thanks in advance
Check with Clay Robbins and see what he says.

Check with Clay Robbins and see what he says.

Thanks for the contact info. I was able to get a quote and asked if it mattered that I was in California and they said "no". Thanks again!
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It's a function of California's Insurance Code. The Code specifies that "No person, other than a seller, shall sell or offer for sale a vehicle service contract to a purchaser." A seller is defined "With respect to motor vehicles, a dealer or lessor-retailer licensed in one of those capacities by the Department of Motor Vehicles and who sells vehicle service contracts incidental to his or her business of selling or leasing motor vehicles."

Basically, in California, no business, other than those in the business of selling cars, can sell vehicle service contracts. My guess is that it's a law intended to protect consumers from fly-by-night businesses that sell people a VSC, close up shop, and run off with people's money having never paid out a dime.
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It's a function of California's Insurance Code. The Code specifies that "No person, other than a seller, shall sell or offer for sale a vehicle service contract to a purchaser." A seller is defined "With respect to motor vehicles, a dealer or lessor-retailer licensed in one of those capacities by the Department of Motor Vehicles and who sells vehicle service contracts incidental to his or her business of selling or leasing motor vehicles."

Basically, in California, no business, other than those in the business of selling cars, can sell vehicle service contracts. My guess is that it's a law intended to protect consumers from fly-by-night businesses that sell people a VSC, close up shop, and run off with people's money having never paid out a dime.
That makes sense, but chryslerwarrantys is a franchised chrysler dealer in wisconsin. So either they are being overly cautious or there is some difference between dealers selling these that would cause this. It must be a recent change that caused them to remove CA.
This is the response from the contact that provided the quote to me when I asked about California:

"I see my Mopar rep weekly and have no mention of changes that would prevent me from selling to anyone anywhere in the US."
That makes sense, but chryslerwarrantys is a franchised chrysler dealer in wisconsin. So either they are being overly cautious or there is some difference between dealers selling these that would cause this. It must be a recent change that caused them to remove CA.
They may be a franchised dealer in Wisconsin, but they are doing business via the internet with customers that may be located anywhere. The intersection of law and e-commerce is an interesting thing. For example, Amazon is a company that is headquartered in Seattle, Washington, yet they collect other states' sales taxes when selling to a customer in a different state because that is where the transaction occurred.

You are likely correct that chryslerwarranties.com is just being cautious because there is likely no case law on this specific issue of CA Insurance Code regs being applied to an out-of-state dealer -- businesses are generally loathe to be the test case in a murky area of the law.
They may be a franchised dealer in Wisconsin, but they are doing business via the internet with customers that may be located anywhere. The intersection of law and e-commerce is an interesting thing. For example, Amazon is a company that is headquartered in Seattle, Washington, yet they collect other states' sales taxes when selling to a customer in a different state because that is where the transaction occurred.

You are likely correct that chryslerwarranties.com is just being cautious because there is likely no case law on this specific issue of CA Insurance Code regs being applied to an out-of-state dealer -- businesses are generally loathe to be the test case in a murky area of the law.
Or it may be they just don’t want the hassle of becoming a registered purveyor of warranties in the state of CA. I know FL treats extended warranties like insurance products. Out of state sellers can sell in FL, but they have to apply/pay for a license with the state insurance commission.
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