How Complying with Auto Warranty Laws Protects Your Clients

Car dealerships in the US sell twice as many used cars as new cars every year. When you insure a business owner who sells used cars, you become familiar with the risks of customer claims, but it’s just as important that your clients make auto warranty compliance a priority. Here’s how complying with warranty laws protects your clients. 

Stay on the Right Side of Regulations

In the US, both the federal government and individual states regulate used car warranties. Although preparing and honoring warranties is complex and takes time and effort, it benefits your clients to comply with all warranty laws that apply to their business and location. If a dealership fails to comply, intentionally or unintentionally, it could lead to heavy fines or the closing of the business. 

Maintain a Trusting Relationship with Consumers

Auto warranty compliance isn’t just about abiding by the law, it’s also a matter of trust between your clients and their customers. When a business owner fails to provide a quality product or misleads consumers in any way, it impacts the success of that business. Staying in compliance with auto warranty laws will ensure that your clients earn the respect and admiration of both longstanding customers and potential buyers. 

While you focus on protecting your clients with comprehensive insurance policies, you can encourage them to research auto warranty laws in their jurisdiction. Complying with these laws will go a long way to protecting their business.