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Warranties Backed by a Risk Retention Group

24

Comments

  • angelloveangellove Posts: 14
    Looks like something is rotten in the state of Denmark or should I say New York!!!

    Doing my routine checking on the Risk Retention Industry and trying to save innocent individuals from making the same mistakes that I and thousands of others did with National Warranty Insurance RRG..I found some intersting information.

    Looks like National Service Contract Risk Retention Group, owned by Interstate Dealer Services the parent company of Warranty Direct, has refused to be rated by AM Best!!! Their rating changed from A- to B++ to a NR-4!!! AM Best states that an NR-4 rating means: "Assigned to companies that were assigned a Best's Rating but request that their rating not be published because the companies disagree with Best's rating conclusion".

    I wonder why they disagree with the findings? Is it really becuase the rating was about to be lowered again? Sounds fishy to me!!!

    Oh, wait a minute isn't Warranty Direct a sponsored link to Edmunds? Looks like Edmunds needs to rethink their relationship with Warranty Direct before it becomes to late!!!
  • jck1962jck1962 Posts: 1
    Hi, I purchased an extended warranty through National Warranty Insurance Company.I have read about other warranties such as Warranty Gold and Smart Choice. I have Triad Advantage, does anybody else have this warranty? I have tried contacting them through the phone and through their website www.thetriadadvantage.com with no luck. I paid $1200.00 for this warranty and now the car dealership that I bought my van from said that I have to foot the bill and submit my repair bill to a company that I can't even get a hold of in hopes og getting reimbursed, I would think the dealer would be responsible for the cost and that they would have to try to get reimbursed, they are the ones who sold me the warranty!thanks for any comments on this. John K.
  • driftracerdriftracer Posts: 2,692
    Don't know how many times I've gone over this one:

    "now the car dealership that I bought my van from said that I have to foot the bill and submit my repair bill to a company that I can't even get a hold of in hopes og getting reimbursed"

    Yes, that's correct.

    "I would think the dealer would be responsible for the cost and that they would have to try to get reimbursed, they are the ones who sold me the warranty!"

    Sorry, and not to be unsympathetic, but you're on your own.
  • mitzijmitzij Posts: 611
    Yeah, there's probably a line in the contract that puts responsibility on NWIC and off the dealer. On this board, I've read of a couple of dealers that are footing bills for customers, or doing a 50/50 split, but they are under no Legal obligation to do so.

    I'd say you're stuck with a very expensive piece of paper.

    Now: next time someone says 'give me $1200 and sign this contract and I'll fix whatever breaks on your car for the next four years,I promise',
    RUN.
  • rayt2rayt2 Posts: 1,208
    Stick with the manufactorers warranty or you'll be taken for a ride everytime ! A very costly ride. Been burned by Warranty Gold and not to happen again.

    Ray T.
  • RRG's always have a lower cost and will cover cars that Insurance companies do not want. Web sites like aawarranty.com are trying to sell you with fear. (Have no clue)

    I have been in the business for 35 years. I can tell you that how long a warranty company has been in business, and if they pay claims mean a lot more then who the Insurance Company back them up means. Warranty Gold was rated A+ from AM Best a week before they went Bankrupt.
  • From what I can tell, WarrantyDirect's insurance company (RRG) is not licensed to do business in California based on an RRG publication dated August,2004. National Service Contract Insurance Company RRG is domiciled in Hawaii--hmm. It is rated Best NR-4 (No rating at company request). Can anyone guess why? The "SecureCare Plus" service contract at Section 10 makes no mention of any reinsurer.

    By the way, be careful of the "rust or corrosion" and "salt" exclusion at Section D--no coverage per the salesman (sounded real flip) I talked to.

    After researching various warranty cos, my take is they are not worth the money and the only people who will buy them are ignorant consumers who haven't done their homework. A shame because many can't afford the added expense.

    Conclusion: When buying a vehicle, obtain the best manufacturer "bumper to bumper" available! American automobile manufacturers will have to improve their warranties if they want anyone to buy their vehicles. I also wonder if there is some tie in with the Better Business Bureau the way these companies tout their records--something fishy.
  • nancywnancyw Posts: 11
    The Auto Club is run by the same guy who drove Warranty gold into the ground and now 1 source auto warranty is no longer backed by Primeguard RRG. What is happening to this industry! Warranty Direct's RRG is unrated and looks like they are in trouble as well. Better look out for all the players out there
  • elvis66elvis66 Posts: 1
    Yea Im In The Same Boat ? the web site says that until the gran camen procedings are done?,that all claims may be paid for at a later date.
  • Hi John....I, too, purchased an extended warranty from Triad Advantage when I purchased my Ford Windstar LX almost three years ago.....I had heard through my dealership that they went bankrupt, and that for the first year they honored the warranties of their customers and it cost them (Van Brunt Motors in Elmira, NY) $300,000.00....so now, they are splitting the repair costs with the buyer....however, because I don't have "proof" of transmission maintenance/work, they refuse to help out at all....My dad does all my fluid checks and did a flushing of my transmission only one time, which was last summer when my van was nearing 60,000 miles.....My transmission went without warning while I was 230 miles away from my home....I bought it less than three years ago for 12 grand...it's a '99 and had almost 48,000 miles on it at signing...there's just under 68,ooo miles on it now....I had the vehicle towed 230 miles to the dealership where it sits because they expect me to pay $2,788.21 for repairs or trade it in for anywhere from 400.00 to 1,500.00......I say they are screwing me ROYALLY!!!! Have you heard anything more on Triad...my dealership says it's still in litigation, and that all the monies have been frozen by the fed. gov.....that we MIGHT get reimbersed, someday...well, I'm not holding my breath waiting, but I centainly feel they owe me something for the $1,948.00 that I paid for a usless extended warranty.....
  • Hi John,
    I also have a useless Triad Advantage Warranty. I plan on making life at Garvey Volkswagon in Glens Falls NY a living hell. I had trouble getting my truck fixed there with the warranty after the first month. It is not expired yet, however my letter from the dealer must have gotten lost in the mail. At least that is what I was told. I cant get anywhere with any website or phone number for Triad either. Have you found out anything else? I paid $1500 for this and after 9 months they went out of business and I never knew till last week when my truck broke down! I really learned a lesson and I hope to get the dealer to pick up some of the slack. After all they are hightly rated by Huandia and that will be who I will write my first letter of discontent to. Trisha
  • Should i buy a warranty from these people or not? This is all getting very confusing, some sites give them great reviews others do not.... HELP!!
  • :confuse:
    Trying to decide what warranty to buy for my new (used) 2000 Volvo C70. My past experience with SAAB convertibles made my warranty worth the cost. I had mixed experience with Warrantybynet plans. On one of my SAAB's, the warranty was from American Guardian and they became real pains in the neck in the last two years (always paid much less than the dealer repair bill). However, I have another plan sold by Warrantybynet on my wife's SAAB from Vemeco (Heritage). So far with two significant claims (power steering pump, direct ignition cassette, towing reimbursement), they paid VERY quickly and painlessly.

    That being said, I can't seem to get a Vemeco exclusionary policy on my Volvo due to the age.

    So...

    I'm considering 1Source, Warranty Direct and Mercury. Mercury is an actual insurance company. I don't know enough about any of them.

    If anyone can give me some advice, please post and email me at jeff.simon@salesapproach.com.

    Thank you!
  • Anyone have personal experience with Heritage, 1 Source or Mercury?
  • fblackfblack Posts: 26
    Yes - 1Source - as of Dec. 2 (according the the recording reached on the Claims phone #) all claims are being referred to the Hawaii Insurance Commissioner's office, who reports that they (and PrimeGuard) are 'under review' and not able to process any claims. No info about status or projected completion of the 'review'. Calls to the sales # get the 'You have called outside of business hours', but it was mid-day on a Tuesday... Previous claim was paid without hassle (about 3 months ago)...
  • 705705 Posts: 1
    Apparently 1SourceAutoWarranty.com has joined the list of casualties. Their Claims Support recording says that of 12/2/2005 all calls are being forwarded to the state of Hawaii insurance. When contacting the state of Hawaii emergency number you are informed that they are no longer accepting claims at this time. Apparently some kind of review process is going on.

    Does anyone have anymore information on what is going on with 1SourceAutoWarranty.com?
  • I took this info directly from 1sourceautowarranty.com's BBB report that is on their website.

    CUSTOMER EXPERIENCE

    On December 2, 2005 the BBB learned that the Hawaii Division of Insurance had suspended operations of this company. The BBB has been unable to confirm with government or law enforcement agencies in Hawaii or Colorado to respond to questions. The BBB urges consumers to be cautious in purchasing any products from this company until more details are made available.

    Here is the link for the entire BBB report.

    http://www.data.bbb.org/scripts/cgiip.exe/WService=denver/denver/showrpt.html?la- nguage=english&zid=RONjJmLoM

    Anyone that has purchased from 1 Source recently needs to cancel with their credit card company. If you have a payment plan also cancel with your credit card company. You may be able to salvage some of your money, if you have claims, well it look like another Warranty Gold fiasco.
  • I really want to go with warranty direct but need more info to make sure they are a good company. Any reason to go with them? Suposedly they are packed by an insurer and reinsurer.
  • audia8qaudia8q Posts: 3,138
    Being backed dosnt mean anything...ask the millions of people who have been burned by an aftermarket warranty company that was "backed".

    Unless there is no choice don't even consider a warranty that isnt backed by a major car company. You save a few dollars with the aftermarket warranty but in the end you won't save anything and there is a good chance you will end up with nothing but alot of promises.
  • I am a current holder of a 1Source E.W. about half way through its life. Over the 3 years I've had it they have been very responsive until that brick wall of a phone message I ran into last week when calling to make a claim. On a hope and a prayer, that phrase 'under review' portends that they/we will recover from whatever hole they/we are in. The number on the recording for the Hawaii Insurance Division is incorrect - the HID Hotline specifically for 1Source is 808.586.7512 but not much new there at this time. Thankfully this message board provides someplace to vent or find some nuggets of info. Writing in your claim or complaint to the address given at the BBB site (see 1 spellman) seems to be the only concrete action that can be taken at this time. If anyone has ar gathers any new info please post. thanks.
This discussion has been closed.