Report: #325537

Complaint Review: Smart Auto Warranty/ Royal Administration Services, Inc.

  • Submitted: Sat, April 12, 2008
  • Updated: Sat, June 06, 2009
  • Reported By: Nowhereville Illinois
  • Smart Auto Warranty/ Royal Administration Services, Inc.
    51 Mill Street, Building F
    Hanover, Massachusetts

Show customers why they should trust your business over your competitors...

After puchasing an "elite" warranty from this company for $1833.00 in 2006, I have had several "communication" problems between the shop doing my repairs and Royal Administrative Services. Basically, they tell the shop the repairs aren't covered under your warranty and hope that you will not dispute and/or double check their accuracy. When I couldn't take the noise any longer and took my vehicle back in to another shop, miraculously the parts were covered, no problem. After a comedy (not really) of errors on Royal's part, I was told my the dealership doing the work, "They had never in all of their combined years of experience dealt with such a horrible and unprofessional company." Beware of all the vague statements in your warranty, it will most definitely bite you in the end.

Without getting into great detail of my problems with this company, I have filed a complaint with the BBB in Massachusetts and received the response that Royal is not going to reimburse me for my monetary complaint (under $250.00) and they are closing my complaint. Too bad, so sad, bye bye. Recently I have filed a complaint with the FTC, we will see where that takes me.

Nowhereville, Illinois
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This report was posted on Ripoff Report on 04/12/2008 08:45 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

Royal Administration Services is a FRAUD

AUTHOR: Crisp Sound - (U.S.A.)

I agree with the report! From day when I need the warranty to cover repairs, they gave the dealer such a hard time, the repairs are always delayed and I had to wait an extra day just to hear back from them.

I asked them to cancel the warranty after two years out of four and they told me that I do not qualify for a refund for unused portion of my warranty.
If you are reading this, be aware and consider other reputable warranty service providers. This one stinks.
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#2 Consumer Comment

CarChex - Bad Inspections on top of a Bad Warranty


I used CarChex to do perform an inspection on a 2001 911 Porsche Turbo as the car was located out of state from where I lived. My decision to purchase the car was based on the findings of the report which all came back with "Excellent" ratings on the car. Let me just say that their definition of "Excellent" is completely different than anybody elses, the car required over $7000 in repairs that were not mentioned in their report. When I received the car the drivers window was not workinh, the rear spoiler was not working, the tires brands and tire sizes were different than those in the report, two of the wheels were bent so badly that they needed to be replaced, the cooling system had leaks and the radiators needed to be replaced, the dash board leather was in bad shape, etc -- you get the point.

Clearly their inspectors are either incompetent, blind, or are on the take receiving bribes from the car sellers to have the car "pass" the report -- or maybe a combination of all three.

Bottom line -- do not do business with these guys!!!

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#3 Consumer Suggestion

Response to previous posting

AUTHOR: Lonnie - (U.S.A.)

After performing additional research I have concluded that there were inaccuracies within my prior post date 4/19/2008. Carchex has been performing inspections since 2001 and started a warranty sales division called Smart Auto Warranty in 2004. As an employee of Continental Warranty I do not have first-hand knowledge of Smart Auto Warranty's sales practices but I am aware that they sell a variety of programs from limited powertraint to very comprehensive exclusionary plans from multiple providers. Customers should perform their own research and draw their own conclusions before purchasing a service contract from any company. I do apoligize sincerely to any consumer who felt misled by my prior post.

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#4 UPDATE Employee

Response to Posting

AUTHOR: Ben - (U.S.A.)

Based on the username of the posting above (Lonnie of Lynnwood, Washington USA), it is our (CARCHEX's) belief that the individual who created the post is affiliated with Continental Warranty. The same username can be found responding to several complaints against Continental Warranty (type Continental Warranty in the Search box to see results.). Unfortunately, with respect to the posting above, in what could be considered an attempt to mislead consumers, there are many factually incorrect statements.

CARCHEX began performing pre-purchase inspections on behalf of consumers in 2001. In October of 2004, CARCHEX expanded its consumer assurance product offerings by launching, a direct-to-consumer vehicle service contract (aka extended warranty) program. Since that time, CARCHEX has become the trusted partner of the Nation's Fortune 500 Companies like Zurich (2007 rank 85) CaptialOne (2007 Rank 154), eBay (2007 Rank 383) as well as having other high profile relationships with companies like CARFAX,, and Road Loans.

All vehicle service (extended warranty) contracts are available for review prior to purchase and consumers are given access to a comprehensive competitor product comparison tool which highlights the differences between CARCHEX and competitor products.

We encourage every customer to carefully perform their research prior to any warranty purchase. We are confident that you'll find the CARCHEX and products and service to be the gold standard within the industry.
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#5 Consumer Suggestion

How to deal with warranty companies especially "brokers"

AUTHOR: Lonnie - (U.S.A.)


I read a lot of articles on extended service contracts and I not only sell these products, but I also have purchased quite a few, so here is some free advice. Companies like Car Chex (A.K.A) Smart Auto Warranty hide behind the tag "Broker" every single time you need customer service. When you shop for warranties they will help you to the maximum, after you purchase one, their hands become tied.

When researching companies and shopping around you have to shop for this product in a different manner than you do most products. Price is not a tangible and coverage even though it seems identical can have some major differences just in the fine print of the agreement. Lets take Smart Auto Warranty for example, here is a Inspection company started 3 1/2 years ago with a name strategically selected to sound like CARFAX, a reputable business. Car Chex is the name of this company out of Maryland, they do inspections for warranty agencies and private owners for a year and a half and decide there is more money in selling warranties so they open Smart Auto Warranty in 2006. Mr. Ben Fenlon and his group of warranty sales people set up a very cheap price and broker plans for Royal Administration Services. They disparrage other companies and lie to clients by saying they have been in business 10 years and have a good rating with the BBB. This couldn't be farther from the truth, they started doing business as an inspection company 3 years ago and as a warranty company a year and a half ago. They misrepresent the Lyndon Property Insurance plans constantly, never telling people that there are caps on labor rates and that seals and gaskets are only covered when in conjunction with a covered item. All the while consumers flock to them for cheap prices, and promises that they never have an intention of honoring.

Why do people buy from these guys? Simple, they sound good. Ben Fenlon will email you comparison charts that show his company versus competitors, of course the data is inaccurate in many cases. One simple rule I would follow if buying a warranty, only buy from a company that has been doing business at least six years. Examples : Warranty Direct, Easy Care, Continental Warranty, GMAC, Nissan Extended Care, Toyota Care, Honda Care, CNA, Warrantech, Universal.

I bought a warranty from CNA recently and I sell warranties professionally. The real fact is every warranty has exclusions, every company is required to give you thirty days to review their actual contract with no obligation. Emails and brochures don't tell you what you need to make a smart decision, get the contract. General rule - Cheap warranties give cheap service.

Thanks for your attention and I hope it helps.

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#6 UPDATE Employee

Response to Posting -- Recommendations for Consumers

AUTHOR: Ben - (U.S.A.)

Thank you for the opportunity to respond to this customer's posting. In this transaction, served as the broker in that it helped the consumer to purchase a 5-year service contract from the Administrator, Royal Administrative Services. The service contract (sometimes referred to as extended warranty) itself is an agreement between the Administrator (or Obligor) of the program and the consumer.

It is important to understand that sales organizations maintain no authority or discretion in the adjudication of claims. That responsibility rests with the Administrator of the contract, in this case Royal Administrative Services. Each Administrator's contract contains specific Terms and Conditions which outline exactly what is covered by the contract as well as other important items such as claim procedures.

We strongly recommend to all consumers to request and review the service contract information thoroughly prior to and after purchase so that they may get a clear understanding of the covered components associated with their purchase as well as familiarize themselves with the company backing the contract. At all contracts are available for consumers to review prior to purchase and we proudly offer the highest quality products backed by top tier administrators and insurance carriers.

While we attempt to make every customer happy with their purchase, inevitably there are some instances in which a customer may be dissatisfied with the result of a claim being denied. In all cases, we are available to work on behalf of consumers to help determine validity of any denial. In this instance, while it is unfortunate that this customer's contract did not cover the window regulator, the Administrator's records show that over $2,100 in claims have been approved and paid on this contract with 3+ years remaining in coverage.

For additional information you may visit We look forward to the opportunity to serve future consumers thru our consultative sales process.
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