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I will try to keep this as brief as possible, but I simply must share this experience I recently had with 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 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 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) 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, 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.


  • 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 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: 17,610
    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.
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