Nearly a million vehicle owners just lost their extended warranties.

Extended warranties can cost car buyers up to $2000. They are not cheap but many say they are worth the high price for the peace of mind.

Now nearly a million people have lost that expensive peace.

The last thing Patti Pettif needs to worry about is her car. The new Cadillac rarely leaves a hospital parking lot where her son has been in critical condition for five weeks. Now the car has a problem she can't ignore.

"It started leaking oil. I found oil on the garage floor," said Patti.

She wasn't too concerned because she paid an extra $1500 for a 5-year 150,000-mile extended warranty.

This car was her first big purchase after her husband suddenly died, so she wanted the extra protection.

"It said bumper-to-bumper, no deductible until 2008," said Patti.

The Cadillac dealer told her the engine needed new gaskets and that her extended warranty is worthless.

MORE ON THIS STORY National Warranty Insurance Company Website

Patti is one of close to a million car owners that have extended warranties underwritten by the National Warranty Insurance Company.

This is what people hear when they call the company: "This is National Warranty Insurance Company. We are currently in liquidation."

"It's terrible, I couldn't believe it, 'cause the warranty sounds so good when you read it," said Patti.

Patti had never even heard of the company because her warranty is from Warranty Gold.

It turns out her Warranty Gold contract was underwritten by the National Warranty Insurance Company.

Now this mother who has been through so much will suffer another hardship.

"Hopefully my son will be well enough that tomorrow I can take my car in and I'm having to pay to have it fixed," said Patti.

Warranty Gold is now using another underwriter.

Consumers are asked to take a closer look at their extended warranty. If the National Warranty Insurance Company underwrites it, you will see it in the fine print.

The company is based in the Cayman Islands and is going through what they call "liquidation."

The company's website is telling customers to save receipts from all repairs and they'll try to reimburse people later.

Note: National Warranty Insurance Group from Nebraska is not associated with National Warranty Corp from Eugene, Ore.