In the early 1990s, Wayne Herring was owner and operator of an independent dealership in Central Pennsylvania. He prided himself on the quality of his pre-owned vehicles, but was continually frustrated in attempts to find a warranty company with a similar commitment to superior dependability, customer service and professional claims handling.

From his contact with other dealers, he knew he was not alone. Seeing a need among quality-oriented dealers for a reputable, customer-oriented warranty company, Wayne decided to start his own. In 1992, Preferred Warranties, Inc., opened with three warranty plans and a commitment to provide the most responsive, courteous, professional customer service that the industry had ever seen. Within a year, enthusiastic dealers in three states carried Preferred Warranties.

The company grew quickly and steadily, adding new warranty programs and dealerships. In 1998, the Northeast Pennsylvania Business Journal ranked Preferred Warranties as the region’s #1 fastest growing company. It was also ranked #179 on the Inc. 500 list of fastest growing U.S. companies, and won the Northeastern Pennsylvania Better Business Bureau’s “Torch Award for Marketplace Ethics.” Not resting on their laurels, Preferred Warranties continued to develop new industry-leading warranty products.

Preferred Warranties are now sold in more than a dozen states, available exclusively through quality dealerships. Although the product offerings and size have changed dramatically, the company has never wavered in its commitment to protect the image of dealers by providing outstanding customer service. Preferred Warranties supports voluntary certification of claims adjusters through the National Institute for Automotive Service Excellence (ASE), the most valuable credential available to automotive technicians. Claims are handled by experienced professionals, not a third party administrator. Just as in 1992, dealers and customers who call Preferred Warranties' toll-free hotline are still greeted by friendly, knowledgeable service representatives - never a recording or automated phone system.

Today Preferred Warranties is majority owned by Harbert Private Equity Fund II, LLC, a Delaware Limited Liability Company with $180 million in committed capital.