SPRINGFIELD – Third-party vehicle warranties are often opaque, contain exclusions, deductibles and difficult claim processes that may not be apparent to the average consumer. State Senator Mike Halpin is leading the effort to protect consumers from these predatory third-party vehicle warranties.

“This legislation will ensure folks know what they’re buying when they purchase one of these third-party warranties for their vehicle,” said Halpin (D-Rock Island). “Too often these warranties use fine print, vague terminology and hidden fees to take money from people without providing meaningful coverage.”

House Bill 2338 would provide, at the customer’s request, a copy of the vehicle warranty contract and a written disclosure prepared by the third-party provider summarizing all costs the consumer may incur under the warranty. These provisions would provide transparency regarding the warranty before a customer purchases it, giving the consumer more choice and a better state of mind down the road.

“Illinois needs to make sure consumers have as much information as they need before making a purchase,” said Halpin, “Everyday working people have good reason to be concerned about costs surrounding their vehicle, this legislation will ensure consumers have enough transparency to see through the fine print on these warranties.”

HB 2238 passed the Senate Consumer Protection Committee Thursday.