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WarrantyWarehouse.com - BE EXTREMELY CAREFUL

I will try to keep this as brief as possible, but I simply must share this experience I recently had with Warrantywarehouse.com. I am a resident of the State of Florida. I requested a quote on my vehicle from their website but was unable to get it on line. Shortly after I requested the quote I received a telephone call from a salesperson from Warrantywarehouse.com. After he pitched and dissed all of their competitors I was shocked beccause he asked me if "I HAD A MAILING ADDRESS OUTSIDE OF THE STATE OF FLORIDA" so that my application can be completed. That made no sense to me and needless to say I became very suspicious from this point on, but allowed him to continue. He was proud to inform me that their administrator is "American Guardian Warranties" located in Illinois, and that Warrantywarehouse has been in business for many years, and is a public company. He also told me that Warrantywarehouse is one of the very few warranty companies approved by AM BEST. He pointed out how they can proudly display the AM BEST logo on their site. THAT IS HIS STORY, AND NOW HERE IS WHAT I FOUND OUT WITH A LITTLE RESEARCH OF PUBLIC RECORDS AND A FEW TELEPHONE CALLS.
1) I called the Florida Insurance Commission ad was told that neither Warrantywarehouse.com nor their administrator "American Guardian Warranties" are licensed to do business in our State. (That is probably why the salesman asked me for an out of state address)
2) Their Administrator is backed by a company called Saint Charles which is a Risk Retention Insurance Company and IS NOT RATED WITH AM BEST.
3) Warrantywarehouse.com is in business for only one year, and is NOT a public company.
4) I contacted AM BEST and was told that neither Warrantywarehouse nor any other warranty company is authorized to use the AM BEST logo. I was told that AM BEST only rates Insurance Companies---NOT WARRANTY COMPANIES. With all of the lies and high pressure sales tactics I have experienced and have listed above it seems to me that this "Johnny come lately" company in the on- line warranty field seems pretty desperate for business, and will say and do anything for a sale. With all of the extensive research and time I have invested on many of the on line warranty companies, Warrantywarehouse.com are the most blatant liars I have come accross. If you are not a believer check out everything I have stated. MOST OF ALL--THERE ARE SOME DEPENDABLE ON LINE WARRANTY COMPANIES OUT THERE. DO YOUR OWN RESEARCH--IT DOES PAY OFF.
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Comments

  • mitzijmitzij Posts: 612
    Are you sure? Two years ago, people in this forum were stating that, after careful research, they had decided to buy a Warranty Gold policy. They were thrilled by the price, financial security, and coverage offered by this company. Now, those same people are behind the eight ball because WG's insurer filed bankruptcy, leaving these posters and several HUNDRED THOUSAND people with expensive, useless pieces of paper. Their contracts. If you type in 'extended warranty' in a search engine, you'll come up with hundreds of websites wanting to sell one. There is a reason for this: Service contracts make money. Lots of money. The average consumer will not see a return of his money when he buys a service contract. There are instances where you will, but be prepared for the inspection-before-authorization process, the 'we will pay for a USED engine' line, and the 'we only pay 1 1/2 hours labor for that transmission replacement' spiel.
  • Warrantywarehouse is a scammer. they have stole monies from folks and from myself. Just like warranty gold they will soon be gone!
  • I just cannnot believe that this company called me AGAIN after I have told them over a month ago that I am not interested in doing business with them, and not to call me. Last September I listed my telephone number with the Federal Trade Commission to be placed on the Nationwide "Do Not Call List", and I even instructed the salesman from Warranty Warehouse, Inc. to put me on their own "Do Not Call List". He told me that he would. Evidently this company does not play by the rules, so I reported them to the FTC. Maybe now they will get my message.
  • jinksyajinksya Posts: 1
    I am a WarrantyWarehouse customer. I enrolled in January and I am a customer from Tampa Bay, FL. I researched Warrnaty Warehouse before I enrolled. Their BBB rating does say they are a company that was started in 1983. I also was nervous about legalities of companies doing business in Florida, so I looked up their license in Florida. It is listed under their administrator American Guardian Warranty Services. Here is the license #: 75-3055774. I got the license info off of the Florida Department of Insurance website.
    I have not seen the Am Best logo on the website of WarrantyWarehouse. When I enrolled they sent an inspector to make sure the vehcile was ok. I passed. The policy began right away. I had a repair for a powerwindow that stopped working the first month of my policy. $189.56 was the repair bill. They covered it.
    I admit I favor these guys because I had a good experience with them. They do have my real address on file, and I was satisfied with the research I did. And most important my claim got paid. I have read posts on Edmunds for a long time. If these guys suck in the future I will call them out on it, but only customers should put messages on Edmunds, not rival companies.
  • I am shocked and apalled of this!! I was scrwewed by WarrantyGOld and am now a Warehouse customer. I am not sure if you work for another compnay but not only am I happ I chose them, they padi a $1800 repare without hassle, and are definitely liscended in FLorida.

    Due your research, you are the one who lost out!!
  • mitzijmitzij Posts: 612
    I'm glad you're happy with your service contract. There are many people who are tickled pink pre-paying for repairs. I hope the company does not go belly-up before your next claim.

    This does bring me to an anecdote, however.
    I work in the service dept of a small dealership. One of my customers came in for repair. He was gushing about the service contract he'd bought with his new truck. 'That's the best money I ever spent!' That would be great, but, his service contract had not kicked in yet. All of the repairs done to date were under GM warranty. Even after I told him this, he still stated that service contract was the best money he ever spent.
  • I am not sure what you mean....I did not have to 'Pre-Pay for repairs'....At this point I am already head of the game by $450.....

    Worrying about the compnay going Belly-Up? Major compnaies all seem to fall, Enron, Ect...What it comes down to is peace of mind!! I felt good about the compnay even after my experience with Gold!!

    I chose them based on their partnerships, coverage, past history, and the fact they have 24/7 Customer Service....It wqas better than getting 'Robbed' by my dealer...
  • mitzijmitzij Posts: 612
    Well, most people who buy service contracts do not see such a quick return of their 'investment' That's why I call it pre-payment. Maybe you had a preexisting condition and the company didn't catch it. Maybe you got 'lucky' and had a major failure. I hope you get 'lucky' again. I work for a dealership service department. In the time I've been here, I've only seen a handful of people recoup their 'investment'.

    But it is a free country, buy a service contract if you really want to, but you'll see few glowing endorsements on this forum.

     You might check in the archive for warranty gold customers who researched diligently and purchased plans. They were happy as larks until June of last year. WG had a stellar record, was in business for years, then, as if by magic, it all went away. Now thousands of people are left holding very expensive pieces of paper instead of their 'peace of mind'
  • KCRamKCRam Mt. Arlington NJPosts: 3,516
    highrolla, what mitzij means by pre-paying for your repairs is, when you buy an extended service contract, the company you buy from invests that money to pay your claims when you have them. So you're paying $1000 now for the transmission job 3 years from now that will cost $2000.

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  • jratcliffejratcliffe Posts: 233
    Think about it this way: only one of the following two statements can be true for an independent extended warranty company:

    1. The extended warranty company remains solvent.
    2. The average customer gets back more in repairs than they spent on the warranty.

    For a manufacturer-backed warranty, however, the equation is different. Maybe it's worth $450 a policy to GM to keep their customers happy, and coming back to GM. If an independent warranty company loses $450 a policy, it goes out of business pretty darn quick.
  • jratcliffejratcliffe Posts: 233
    Think about it this way: only one of the following two statements can be true for an independent extended warranty company:

    1. The extended warranty company remains solvent.
    2. The average customer gets back more in repairs than they spent on the warranty.

    For a manufacturer-backed warranty, however, the equation is different. Maybe it's worth $450 a policy to GM to keep their customers happy, and coming back to GM. If an independent warranty company loses $450 a policy, it goes out of business pretty darn quick.
  • angelloveangellove Posts: 14
    Thank you Jinksya for letting us know who the adminstrator is. Now let me tell you who their insurer is...St. Charles Insurance Company R.R.G...as in Risk Retention Group. Now please go to AM Best and tell me what their rating is. I bet they don't have one!!!

    You may have gotten your claim paid now...but so did all of us Warranty Gold customers until National Warranty Insurance Group R.R.G. collapsed. So I wish you good luck!!
  • driftracerdriftracer Posts: 2,692
    2 perfect points!
  • mitzijmitzij Posts: 612
    didn't say it better myself!
  • St. Charles is not rated but the policy is Reinsured by an A rated Company....Once again, one must go with their 'gut feeling' and I know I made the right decision. If I am wrong, I will let you know!!
  • Are you familiar with reinsurance? Do you know when that reinsurance will kick in? I doubt you are.
  • Being an Accountant i Know what Re-insurance is!! In fact, if you do your research properly not a single RRG based in the US has fallen. NWIG was based in Cayman Islands (1st mistake I made) and due to that left their consumers unprotected. Do your research and chose the compnay that best for you, I chose WarrantyWarehouse and have had 2 claims paid hassle free. Maybe they are not right for you, but they have done me right!!
  • driftracerdriftracer Posts: 2,692
    is why take the chance?

    This is my/yourmoney we're gamling with here - not some unnamed client.
  • q45manq45man Posts: 416
    When one touts a company so much, one is either an employee, commissioned sales agent [referral fees], or scared to death that the company they paid will go out of business.

    Over the years these boards [not just Edmunds] have been full of shills. Everyone has an agenda!

    Not saying that is the case, but for every negative [concern] from the moderator and myself, a positive reenforcement balances us out.

    That said I had a great experience with TRW [before they went out of business] my $1,000 returned over $8,000 in 2 years...[back in 96-97]

    Most don't realize that these service contracts worked in the past because of inflation and the high returns on your invested premiums .In todays low interest rate enviroment the old $1,000-$1,500 premiums won't work.

    An acurarial accurate number would mean these policies should cost $2500 for 100k term.

    Saw one policy for a Range Rover that was $4300 for 100,000 miles, they probably will stay in business and pay off.
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,621
    Refuses to sell warranties for anything built by Rover for any price.

    That should speak volumes!

    4300.00 probably isn't enough for such a troublesome vehicle.
  • If you don't mind taking the time, tell us about the reinsurance Warranty Warehouse has on the policies. Thanks!
  • steve4steve4 Posts: 1
    I don't care too much for auto warrantys, but I was looking around for my sister. I called a few companies. Some better than others. This company sounds like canned salesmen selling cars. All they do is put down other companies selling similar products and try to tell you they are the best. Their reinsurnace company is St. Charles, which has only been around only for a few years. They just started selling these warranties around 2 years ago. They claim in business since 1983 according to BBB report.You can tell their operators are paid by commission and really don't care about us. I will probably have my sister go with either her credit union or back to the dealer. They say buyer beware.
  • Kirstie_HKirstie_H Posts: 10,830
    discussion is reactivated by request.

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  • Having carefully read the Vehicle Service Agreement (Platinum), I am going to pass for now, on this warranty service. It is the document that will control if you have any problems and all the complaints in the world to the Better Business Bureau won't matter if American Guardian strictly complies with the agreement and remember, only a small number of unhappy customers take the time to complain. Here are some of the items I found that concern me:

    Page 4--"Replacement parts will be of like kind and quality and may include new, remanufactured, rebuilt or used based on the Administrator's option;

    Page 7--don't fall for the "Optional Additional Benefits";

    Page 8--receiving full benefits under the Agreement is subject to "...keeping receipts for services from the date of vehicle purchase." How many people can satisfy this requirement?

    Page 8--"LIMIT OF LIABILITY-The total benefits paid or payable under this Agreement shall not exceed the actual cash value (ACV) of your vehicle or $10,000.00, whichever is less." Wow, haven't seen this limitation in some of the other warranties out there--have you? You better be able to prove that you have followed the manufacturer's recommended maintenance, too.

    Page 10--"Pre-existing conditions that have manifested through the gradual reduction in operating performance and whose condition predates the activation of the service agreement." If this clause doesn't apply in certain situations, then they should be spelled out. Can't rely on salespeople to spell this out orally--won't mean anything when the clause is enforced by American Guardian--when your engine or transmission goes (after manufacturer warranty expires).

    Page 12--unable to find proof tying St. Charles Insurance Company, R.R.G. to Hannover Re should St. Charles go under like those backing Warranty Gold. Should have a declarations page available on web-site.

    Many of the above issues do not appear in the equivalent agreement used by Warranty Direct; however, I wouldn't vouch for any such company at this point and I haven't addressed the quality of service or how these companies are insured. All of them need to create a code of conduct and standard language for their contracts, but I suspect profits are higher doing business the way they do now. Tread carefully and good luck to all.
  • driftracerdriftracer Posts: 2,692
    and something I've seen from several aftermarket service contract companies...

    "Page 4--"Replacement parts will be of like kind and quality and may include new, remanufactured, rebuilt or used based on the Administrator's option"

    That means the administrator or adjuster can find a used (salvage yard) engine or transmission (or rear differential) and have it installed in your vehicle. By contract, they have the right.

    Seriously ugly - and I've had techs who had to clean off mud and rust from an engine that sat in a salvage yard before they installed it. Problem is, most dealers and shops have 12/12 warranties on their work, so it ropes them into providing a warranty on a used motor out of a wrecked car or truck.

    That's another reason many dealerships won't deal with private service contracts.
  • If I were to buy such a contract, I'd confirm with the dealerships that I intended to use whether they had ever dealt with the company I was thinking of using. If not--not worth it, especially when they have the nerve to cap repairs.

    The more I read, the more likely I am not to buy such a contract; instead, I'll firmly negociate with the manufacturer and all the TSB's evidencing defects that we shouldn't have to pay for.
  • driftracerdriftracer Posts: 2,692
    but the private service contracts I've dealt with have ALL been major time consuming nightmares to deal with as a service manager/service advisor, and nearly always leaves the consumer dissatisfied, and that naturally gets passed on to me, since you can't chew out someone you can't see.

    I don't like being the bad guy who gets to tell you we're putting a used motor in your car - not cool.

    One thing you HAVE to understand - just because a manaufacturer sends out a TSB on a problem does not make them liable for the cost of repair in any fashion. There's no negotiating to it.
  • Your points are well taken.
  • sneakerssneakers Posts: 1
    Hmmm, it sounds like to me you are not very familar with extended auto warranty's. First off the pre-payment rule. There is NO extended warranty company thats worth anything that will allow you to make payments on it and pay for the repair in full. Think about it. I go tommarrow to extend a warranty knowing my engine is bad, I go extend the warranty put a 200$ deposit down go and get a 2,000$ repair done then cancel out. Second point is the receipts of service done. Thats strictly for your protection, because alot of dealership out there will say something went wrong with the vehicle due to user neglect, if you have the proper documentation to prove them wrong then the warranty will pay for it despite what the mechanics findings.Page 8--"LIMIT OF LIABILITY, when I read what you wrote I had to brace myself because I was laughing so hard. Limit of $10,000. I have been in the auto warranty business going on 21 years and have yet seen anyone surpass 10,000 worth of repairs.. Your good at lying aswell, you stated that you will pass with the warranty, but you would not of received the warranty to look over by just going to the website. you would have had to already enrolled in coverage. To receive a copy of the warranty. As far as the worth of the company and trackign down the backers of the company. Its actually St. Charles, Heritage insurance aswell as hanover which is the 3 largest RRG groups available. Warranty gold didnt have any backers hense the reason why they went out of business. This company has 3. Another valid point is the fact American Guardian Warranty Services pays out close to 2.7 million dollars a month in claims is also almost double then any other warranty company out there. Now you want to pick apart auto warranty I suggest you look into G.M.s extended warranty aswell as Ford esp warranty then match it with the platinum coverage and you will see they are the same. Having wrote a few warranties in the past I know it to be true.
  • mitzijmitzij Posts: 612
    1. Jaybird seems to have learned quite a bit by reading contracts provided-many websites have sample contracts that can be downloaded. Legitimate companies will send copies of contracts to be read.

    2. I can buy a car, tack the cost of the service contract onto my auto loan and, in effect, make payments on the service contract.

    3. Warranty Gold had a RRG backing it. The RRG went under, supposedly taking WG with it. RRGs are not the most stable organizations.

    4. You're right, Jaybird should check out manufacturer backed service contracts. He will find they are NOT the same as other providers. Manufacturer backed contracts pay for OEM parts, and are much more concise about what is covered and what is not. I have yet to see a GMPP claim denied due to 'normal wear and tear' whereas that is the favorite excuse of certain other companies I have dealt with.

    5. Please break up your writing with paragraphs, it's easier to read. Also, please make an attempt at decent grammar and spelling. Again, easier to read.

    EDIT: Oh, and one more thing. It's illegal to purchase a service contract on an item with a known problem, then submit for repairs. That's called insurance fraud.
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