Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
Options
Comments
The lack of information is remarkable. I can't read sample contracts, it doesn't mention who they are or where they're from, and they don't say who their insurers are. The no contract bit is a big red flag. If you won't tell me what you'll cover until after I fork over money, I ain't interested. The 'coverages' page of the site has a grocery list of what's covered. This covers less than an 'exclusionary' contract would. (where they list what's NOT covered, rather than what is covered) There are thousands of parts on a car-they've listed a couple of hundred. I don’t see where they state they cover wear and tear-if a salesman told you that over the phone, I’d be skeptical. It’s one of those ‘too good to be true’ type things.
It looks like they've been in the service contract business since 2004. This might be a good thing. It seems like most of these companies stay around for about 15 years, then go belly up. You're still in the honeymoon period, so you might actually get some claims paid.
CarChex is an affiliate of CarFax-not necessarily owned by or financially backed by CarFax. There's a big difference there. Edmunds advertised for Warranty Gold before it went bankrupt. There's no guarantee they're good, simply because CarFax advertises for them.
Dennis
They play on people's fears (your car WILL break down), their lack of vehicle knowledge (see how many parts we pay for!!), their general dislike of taking a car to the shop (we'll take care of all the negotiations for you!), and their tendency to not read contracts before they sign (the fine print is deliberately confusing).
It's really quite shady.
How would I know if there are companies other members would recommend?
Here is a copy of what IS covered -
I'm looking at the $1800 Deluxe Coverage -
with a detailed list of WHAT is covered and HOW.
(And no, I didn't have to pay to get the details - there was a link with my quote.
Let me know what you think.
Thanks.
WARRANTY AMERICA LLC
(In Texas dba WA Administrative Services, LLC)
5695 Yukon Street ~ Arvada ~ Colorado ~ 80002 ~ (800) 531-1925 ~ Fax: (303) 420-7543
Auto/ Truck Service Contract Coverage Pages
••DEFINITIONS••
• “BREAKDOWN” or “Mechanical BREAKDOWN” means the event caused by the total failure of any COVERED PART to
work as it was designed to work in normal service. Please refer to the wording under exclusions for a listing of conditions under
which the failure of a COVERED PART is not considered a Mechanical BREAKDOWN.
• “ADMINISTRATOR or PROVIDER” refers to the party that is obligated to perform under this contract which is Warranty
America, LLC (In Texas and New Hampshire dba WA Administrative Services, LLC)
• “WE, US and OUR” refers to the party obligated to perform under this contract which is Warranty America, LLC (In Texas and
New Hampshire dba WA Administrative Services, LLC).
• “COMMERCIAL USE” means any vehicle used for Business purposes. Vehicles that are used in excess of manufacturer’s
g.v.w.r. for excessive hauling and pulling or are in excess of 1-ton classification are excluded from coverage hereunder. Tow
trucks, taxis, police vehicles and vehicle used for emergency purposes are excluded from coverage.
• “CONTRACT HOLDER” means the purchaser or holder of this Contract.
• “COVERED PART” means any part of the vehicle listed herein as a COVERED PART and not excluded from coverage by this
Contract.
• “LUBRICATED PART” means any parts, which requires lubrication to perform its function.
• “PARTICIPATING LENDER” means any financial institution providing financing for the purchase of the Contract.
• “REPAIR FACILITY” means any automotive REPAIR FACILITY at which the CONTRACT HOLDER seeks to acquire
service under this Contract.
• “WAITING PERIOD” means no claims or Roadside assistance benefits will be paid on any claims or failures that occur within
the first 30 days and 1,000 miles from the “Odometer Reading” and “Sale Date” on the Declaration Page. In Arizona there is no
WAITING PERIOD if the contract was purchased in conjunction with a vehicle.
••INSURANCE COMPANY STATEMENT••
OUR obligations to perform under this Contract are insured under policy #22638-0 issued by First Commercial Insurance
Company (“Insurer”), with office located at 2300 W 84th Street Hialeah, Florida 33016. For inquiries contact Associated Insurance
Brokers 13499 Biscayne Blvd Tower Suite 4 North Miami, FL 33181 Phone (305) 919-9727 Fax (305) 362-5908. If the Claims
Administrator fails to pay a claim under this Contract within 30 (thirty) days of proof of loss by you, the service CONTRACT
HOLDER, you may make a direct claim against First Commercial by writing to the aforementioned address.
When you receive this Contract read it carefully. Ensure that Part One, the Declaration Page is complete and accurate. Read
all sections of Part Two, the Coverage Pages, carefully and if you are unclear about any information herein call the
Administrator, for clarification.
Purchase of this Contract is not required in order to purchase or obtain financing for the vehicle. This Contract is not issued by the
manufacturer or wholesale company marketing the vehicle. This Contract will not be honored by such manufacturer or wholesale
company.
••CONTRACT HOLDER OBLIGATIONS••
• The CONTRACT HOLDER hereby authorizes the PARTICIPATING LENDER to: (1) be listed as joint payee and receive
any refund in the event this Contract is canceled, or (2) to cancel this Contract in the event the CONTRACT HOLDER defaults
in his/her obligations to such lender.
• In order for this Contract to remain in force, the CONTRACT HOLDER is required to follow the vehicle manufacturer’s
required maintenance schedule. Some vehicle manufacturers require that the Timing Belt be changed at a specific interval.
CONTRACT HOLDER must follow the vehicle manufacturer’s maintenance guidelines to avoid denial of a claim because of
improper maintenance. The CONTRACT HOLDER must keep and make available verifiable, signed service/purchase receipts
that show that this maintenance has been performed within the time and mileage limit requirements.
• The CONTRACT HOLDER and the REPAIR FACILITY are required to obtain from US and an authorization number prior to
beginning any repair covered by this Contract.
• The CONTRACT HOLDER is responsible for paying a $100 deductible for each visit to the REPAIR FACILITY, unless
lower deductible option has been purchased.
• The CONTRACT HOLDER is responsible for authorizing and paying for any tear down or diagnosis time needed to determine
if the vehicle has a covered BREAKDOWN. If it is subsequently determined that the repair is needed due to a covered
BREAKDOWN, the Provider will pay for such tear down or diagnosis. If the failure is not a covered BREAKDOWN, the
CONTRACT HOLDER is responsible for payment of such tear down or diagnosis.
••PROVIDER OBLIGATIONS••
If a covered Mechanical BREAKDOWN of the vehicle occurs during the term of this Contract, WE will:
NO CLAIMS WILL BE PAID WITHOUT PRIOR AUTHORIZATION
CLAIMS 1-800-531-1925
Page 2 of 6
• Pay the CONTRACT HOLDER or the REPAIR FACILITY for repair or replacement, as WE, deem appropriate, of the
COVERED PART(s) which caused the BREAKDOWN if the CONTRACT HOLDER has met his/her obligations as
described in this Contract and if the BREAKDOWN is not excluded under the exclusions section of this Contract. Replacement
parts can be of like kind and quality. This may include the use of new, remanufactured or used parts as determined by US. Labor
will be authorized based on a nationally recognized labor manual.
• Rental reimbursement is based on labor time charged to do the repair(s). Rental will not be authorized until the repairs have been
authorized by US. One (1) day rental is allowed for parts delay, inspection of BREAKDOWN, and/or four (4) hours to do
repairs. An additional day of rental will be authorized for every additional eight (8) hours of labor time charged to do the repairs.
TO RECEIVE RENTAL BENEFITS THE CONTRACT HOLDER MUST SUPPLY US, WITH HIS/HER RECEIPT FROM A LICENSED RENTAL
AGENCY. The limit on this reimbursement is up to $50 per day for up to three (3) days per BREAKDOWN or series of
BREAKDOWNS related in time or cause.
• Reimburse the CONTRACT HOLDER for motel and restaurant expenses up to $50 per day for a maximum of three (3) days in
the event of a BREAKDOWN covered by the Contract, which occurs more than one hundred (100) miles from your home and
results in a REPAIR FACILITY keeping the vehicle overnight. The maximum benefit per occurrence is $150. TO RECEIVE
MOTEL AND RESTAURANT REIMBUR
MOTEL AND RESTAURANT REIMBURSEMENT, THE CONTRACT HOLDER MUST SUPPLY US, WITH HIS/HER RECEIPTS FROM THE
PROVIDERS OF SUCH SERVICES.
• Reimburse the CONTRACT HOLDER for the actual expenses occurred for towing, not to exceed the amount stated on the
Declaration Page when a BREAKDOWN has occurred.
••PARTS COVERAGES••
“BUMPER TO BUMPER” COVERAGE (THE PARTS LISTED BELOW ARE NOT COVERED. THEREFORE ANY PART NOT LISTED IS
COVERED UNDER THIS COVERAGE PER THE TERMS OF THIS AGREEMENT): PAINT/CARPETING; FRAME OR STRUCTURAL SEPARATION;
MANUAL/HYDRAULIC CLUTCH ASSEMBLY; TRIM; HOSES AND RUBBER PARTS; FIBERGLASS TOP; ANY REPOSITIONING, REFITTING
OR REALIGNING; MOLDINGS; DISTRIBUTOR CAP/ROTOR; TIRES/WHEELS; AIR BAG/SUPPLEMENTAL RESTRAINT SYSTEMS; LENSES;
BATTERY AND CABLES; ALL MAINTENANCE SERVICE AND ITEMS SUCH AS ALIGNMENTS, WHEEL BALANCES, ENGINE TUNE-UPS,
SPARK/GLOW PLUGS, PLUG WIRES, BRAKE PADS, LININGS & SHOES, FILTERS; LUBRICANTS & COOLANTS (UNLESS IN CONJUNCTION
WITH A COVERED BREAKDOWN); HOSES AND V-STYLE BELTS; BRIGHT METAL; LIGHT BULBS/HEADLIGHT OR TAILLIGHT
ASSEMBLIES; EXHAUST SYSTEM; WEATHER STRIPPING; BODY PANELS; BRAKE ROTOR/DRUMS; NORMAL FLUID/OIL LUBRICANT
SEEPAGE; CANVAS, VINYL OR FABRIC TOPS; SATELLITE/GPS SYSTEMS; VIDEO SYSTEMS; REMOTE COMPACT DISC CHANGERS; SHOP
SUPPLIES, HAZARD WASTE REMOVAL; BODY ADJUSTMENTS; BUTTONS, HANDLES, DOOR HINGES, GLASS AND GLASS ASSEMBLIES;
SERVICE ADJUSTMENTS AND CLEANING; RETROFITS OR REPLACEMENTS OF ANY COMPONENTS CAUSED BY OR DUE TO COMPLIANCE
WITH LAW OR LEGISLATION INCLUDING THE 1990 CLEAN AIR ACT, AND INCLUDING EMISSION CONTROL EQUIPMENT AND
SENSORS. TIRES - THE TIRE MUST BE AN ORIGINAL VEHICLE MANUFACTURER EQUIPPED TIRE, OR REPLACEMENT TIRE OF THE
SAME SIZE AND TYPE, WITH NO LESS THAT 3/32” TREAD DEPTH, PROPERLY INSTALLED ON YOUR VEHICLE. REIMBURSEMENT IS
BASED ON THE PRICE OF ORIGINAL TIRES PURCHASED WITH YOUR VEHICLE. COVERED DAMAGE IS DEFINED AS ANY ROAD HAZARD
CAUSED DAMAGE NECESSITATING REPLACEMENT OF THE TIRE.
“WRAP” COVERAGE (Wrap coverage is Bumper to Bumper coverage excluding the coverage provided by the manufacturer
for the same term.)
“DELUXE” COVERAGE (This Contract covers ONLY the components/parts listed below): (1) ENGINE. (a) Engine head(s);
engine block; cylinder barrels; timing cover; valve cover(s); oil pan; dipstick & tube, ONLY if damaged by the failure of a lubricated
internal part. (b) The following lubricated internal parts: pistons, pins & rings, connecting rods & bearings; crankshaft & main
bearings; camshaft, followers & cam bearings; push rods, valves, springs, replaceable guides, seats & lifters; rocker arms, shafts &
bushings; timing gear, chain, tensioners & retainers; eccentric shaft; oil pump. (c) Also covered are the following: timing belt;
serpentine belt; water pump; intake & exhaust manifolds; engine mounts & cushions; engine torque strut; harmonic balancer; flywheel
(flexplate) & flywheel ring gear; mechanical fuel pump; dipstick & tube; all pulleys. (d) All lubricated internal parts of the vehicle
manufacturer installed turbo-charger or supercharger. The housing is covered ONLY if damaged by the failure of a lubricated internal
part. Wear & Tear. (2) TRANSMISSION. (a) Transmission case, transfer case & torque converter case, ONLY if damaged by the
failure of a lubricated internal part. (b) All lubricated internal parts contained within the cases. (c) Computer modules & solenoids;
filler tube & dipstick; vacuum modulator; internal linkage. Wear & Tear. (3) DRIVE AXLE. (a) Differential housing, transaxle
housing & final drive housing, ONLY if damaged by the failure of a lubricated internal part. (b) All lubricated internal parts contained
within the housings. (c) Axle shafts; constant velocity joints (CV); universal joints; drive shafts; locking hubs; locking rings; supports,
retainer & bearings. Wear & Tear. (4) ELECTRICAL. Alternator; combination turn signal switch; controllers; cruise control
transducer, engagement switch & servo; distributor; gauges; horn buttons & horns; motors; pole pieces; power door locks; vacuum
pumps; washer pumps; relays; solenoids; speed sensor; starter; manually operated switches; voltage regulator; window defroster;
window regulators; wiring harnesses for listed covered components. Wear & Tear. (5) STEERING. (a) Gear housing ONLY if
damaged by the failure of a lubricated internal part. (b) All lubricated internal parts including: rack & pinion; power steering pump. (c)
Main & intermediate shafts; couplings; cooler & cooler lines; power cylinder; Pitman arm; idler arm; tie rod & tie rod ends, link &
control valve. Wear & Tear. (6) AIR CONDITIONING. Compressor; condenser; clutch pulley & clutch coils; evaporator; POA
valve; accumulator; orifice; “H” valve; expansion valve; serpentine belt tensioner; temperature control programmer; power module;
idler pulley & bearing; ducts & outlet hoses; blower motor; receiver/dryer. IF THE AIR CONDITIONING SYSTEM IS UNABLE
NO CLAIMS WILL BE PAID WITHOUT PRIOR AUTHORIZATION
CLAIMS 1-800-531-1925
Page 3 of 6
TO BE REPAIRED DUE TO THE SHORTAGE, UNAVAILABILITY, OR RESTRICTION OF CFCS BY FEDERAL
MANDATE (I.E. FREON, R-12) THEN WE DO NOT HAVE ANY FURTHER OBLIGATION FOR REPAIR OF THE AIR
CONDITIONING SYSTEM UNDER THIS CONTRACT. WE HAVE NO OBLIGATION TO INSTALL A RETROFIT KIT
ON YOUR VEHICLE THAT WOULD ALLOW USE OF ANY ALTERNATIVE TO CFCS. Wear & Tear. (7)
SUSPENSION. Upper & lower control arms, shafts & bushings; upper & lower ball joints; steering knuckles; stabilizer shaft, linkage
& bushings; kingpin & bushings; spindle & spindle supports; torsion bars, coil & leaf springs; wheel bearings. Wear & Tear. (8)
BRAKES. Master cylinder; power assist booster; vacuum assist booster pump; wheel cylinders; combination (proportioning) valves;
hydraulic lines & fittings; disc calipers; power brake cylinder backing plates; springs, clips and retainers; self-adjusters; parking brake
linkage and cables; and rear actuators. Wear & Tear. (9) ELECTRONIC HIGH-TECH. Level control compressor, sensors &
limiter valve; pneumatic suspension pump, sensors & valves; ignition module; spark control detonation sensors & controller;
integrated circuit chips; driver information display & module; keyless entry system; electronic coil packs; moisture control unit &
sensors; anti-detonation sensors; vehicle manufacturer installed anti-theft device; the following parts of the Anti-locking Brake System
(“ABS”): electronic wheel sensors; pump & pressure control module. Wear & Tear.
“PLATINUM” COVERAGE (In addition to the coverage’s listed in “Deluxe” Coverage above, “Platinum” Coverage includes
the following): (10) COOLING. Radiator; fan & fan clutch. Wear & Tear. (11) FUEL DELIVERY. Fuel injectors; fuel pumps;
fuel lines; fuel tank; pressure regulator. Wear & Tear. (12) SEALS, SEALING BOOTS & GASKETS. For the components/parts
listed above. (13) AUDIO CENTER. Vehicle manufacturer inst
magnetic tape players/recorders, compact disc players, graphic equalizers. COVERAGE DOES NOT INCLUDE VIDEO
EQUIPMENT OR REMOTE COMPACT DISC PLAYERS.
“POWERTRAIN” COVERAGE (Powertrain covers ONLY component groups 1 thru 3 in the “Deluxe” coverage listed above.)
Wear & Tear.
••OPTIONAL COVERAGES••
Declaration page MUST indicate that option was purchased for coverage to apply.
GPS Package: If you selected and paid an additional charge for the GPS coverage as shown on your contract declaration page, the
following components of your vehicle will be covered under this contract: Factory installed video components including
TV/VCR/DVD/VIDEO GAME PLAYER. COVERAGE DOES NOT COVER PROGRAMMING, SOFTWARE UPDATES OR
SERVICEING OR CLEANING.
EMISSIONS Package: If you selected and paid an additional charge for the Emissions coverage as shown on your contract
declaration page, the following components of your vehicle will be covered under this contract: Air Fuel Ratio Sensor, Air Induction
System, Air Pump, Anti-Knock Sensor, Barometric Pressure Sensor, Canister Purge Solenoid, Deceleration Valve, EGR Recirculation
System, EGR/ EFE Thermal Vacuum Switch, EGR/EFE Valve, Engine Oil Fill Cap, Fuel Fill Neck Restrictor, Fuel Receptacle, Fuel
Sensor, Fuel Tank Pressure Control Valve (PCV), Fuel Temperature Sensor, Idle Air Control Valve, Intake Air Resonator, Intake Air
Temperature Sensor, Intake Manifold, MAP Sensor, Mass Air Flow Sensor, Oxygen Sensor, PCV Sensor, Positive Crankcase
Ventilation Valve, Power train Control Module, Secondary Air Injection Systems. Coverage for components listed in this coverage
supersedes those excluded in the exclusions section of this contract.
••EXCLUSIONS – WHAT THIS VEHICLE SERVICE CONTRACT DOES NOT COVER••
THIS CONTRACT DOES NOT COVER THE FOLLOWING: NO CLAIMS OR ROADSIDE ASSISTANCE BENEFITS WILL BE PAID ON ANY
CLAIMS OR FAILURES THAT OCCUR WITHIN THE “WAITING PERIOD”. REPAIR OR REPLACEMENT OF A COVERED
COMPONENT/PART TO CORRECT CONDITIONS THAT MAY REASONABLY BE ASSUMED TO HAVE EXISTED AT THE INCEPTION DATE OF
THE COVERAGE PROVIDED BY THIS CONTRACT (DOES NOT APPLY TO ARIZONA CUSTOMERS); A BREAKDOWN CAUSED BY LACK
OF MANUFACTURER’S SPECIFIED MAINTENANCE; A BREAKDOWN CAUSED BY CONTAMINATION (FOREIGN OBJECTS OR
SUBSTANCES INCLUFDING BUT NOT LIMITED TO SLUDGE) OF OR LACK OF PROPER FUELS, FLUIDS, COOLANTS OR LUBRICANTS,
INCLUDING A BREAKDOWN CAUSED BY A FAILURE TO REPLACE SEALS OR GASKETS IN A TIMELY MANNER; REPAIR OF ANY
PARTS USED, ADDED OR REPLACED DURING A COVERED REPAIR WHICH ARE NOT NECESSARY TO THE COMPLETION OF THE
COVERED REPAIR OR WERE NOT DAMAGED BY THE FAILURE OF A COVERED PART (SUCH REPLACEMENT IS CONSIDERED
BETTERMENT AND IS NOT COVERED BY THIS CONTRACT); ANY COST COVERED BY A REPAIRER’S OR SUPPLIER’S GUARANTEE, OR
ANY COST WHICH WOULD NORMALLY BE COVERED BY A MANUFACTURER’S WARRANTY; COST OR OTHER DAMAGES CAUSED BY
CONTINUED VEHICLE OPERATION AFTER THE FAILURE OF A COVERED PART OR THE FAILURE TO REPLACE A WORN PART THAT
HAS NOT FAILED; ANY LIABILITY, COST OR DAMAGES THE CONTRACT HOLDER MAY INCUR TO THE BENEFIT OF ANY THIRD
PARTIES OTHER THAN US,-APPROVED REPAIR OR REPLACEMENT OF COVERED PARTS’ WHICH CAUSED A BREAKDOWN; A
BREAKDOWN CAUSED BY OVERHEATING, RUST OR CORROSION; COST FOR ANY ALIGNMENTS, ADJUSTMENTS, REPROGRAMMING,
SOFTWARE UPDATES AND GLASS. REPLACEMENT COSTS FOR ANY UPHOLSTERY, PAINT, NUTS, BOLTS, FASTENERS, FUSES AND
FUSEABLE LINKS; A BREAKDOWN CAUSED BY COLLISION, FIRE, ELECTRICAL FIRE OR MELTDOWN, THEFT, FREEZING,
VANDALISM, FLOOD, OR FOR ANY HAZARD INSURABLE UNDER STANDARD PHYSICAL DAMAGE INSURANCE POLICIES WHETHER OR
NOT SUCH INSURANCE IS IN FORCE WITH RESPECT TO THE VEHICLE; LOSS OF USE, LOSS OF TIME, LOSS PROFITS OR SAVINGS,
INCONVENIENCE, COMMERCIAL LOSS, OR OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOSS THAT RESULTS FROM A
BREAKDOWN; LIABILITY FOR DAMAGE TO PROPERTY, OR FOR INJURY TO OR DEATH OF ANY PERSON ARISING OUT OF THE
OPERATION, MAINTENANCE OR USE OF THE VEHICLE, WHETHER OR NOT RELATED TO A BREAKDOWN; ANY COSTS OR OTHER
BENEFIT FOR WHICH THE MANUFACTURER HAS ANNOUNCED ITS RESPONSIBILITY THROUGH ANY MEANS INCLUDING PUBLIC
RECALLS OR FACTORY SERVICE BULLETINS; VEHICLES THAT HAVE BEEN MODIFIED IN A MANNER THAT INCREASES THE
NO CLAIMS WILL BE PAID WITHOUT PRIOR AUTHORIZATION
CLAIMS 1-800-531-1925
Page 4 of 6
LIKELIHOOD OF A BREAKDOWN, INCLUDING BUT NOT LIMITED TO TIRES THAT EXCEED MANUFACTURE’S TOLERANCE;
CONSEQUENTIAL DAMAGE OF A COVERED COMPONENT BY A NON-COVERED COMPONENT IS NOT COVERED; FAILURE OF A NONCOVERED
COMPONENT CAUSED BY A COVERED COMPONENT IS NOT COVERED; BREAKDOWNS’ CAUSED BY AN IMPROPER REPAIR
PREVIOUSLY PERFORMED; CONTINUED OPERATION OF AN IMPAIRED VEHICLE WHICH CAUSES FURTHER DAMAGE IS NOT COVERED.
VEHICLES THAT DO NOT HAVE A VALID V.I.N., OR ARE TITLED AS BRANDED, SALVAGED, JUNK, REBUILT, TOTALED OR FLOOD
DAMAGED. COMMERCIALLY USED VEHICLES (UNLESS SURCHARGE HAS BEEN APPLIED) ANY VEHICLE THAT IS USED FOR SNOW
REMOVAL PURPOSES (UNLESS SURCHARGE HAS BEEN APPLIED). ANY FAILURE THAT OCCURS OUTSIDE OF THE UNITED STATES AND
CANADA.
••HOW THIS CONTRACT MAY BE CANCELED, INCLUDING REFUNDS AND CHARGES••
The CONTRACT HOLDER may cancel this Contract by sending this Contract with a notarized statement indicating the actual miles
on your vehicle at the date of the request to US, at 5695 Yukon Street, Arvada, Colorado, 80002. The CONTRACT HOLDER may
cancel this Contract within sixty (60) days of the Contract Purchase Date, if no claim has been made, and receive a full refund of the
Total Contract Purchase Price, less claims paid. The CONTRACT HOLDER may cancel this Contract at any other time and receive
a pro rata refund of the Total Contract Purchase Price based on the greater of the days in force or the miles driven compared to the
Total Contract Term, less the applicable cancellation fee and claims paid. All cancellations for contracts that have been financed will
be paid to the PARTICIPATING LENDER, unless the contract has been paid in full by the customer. The Term of this Contract for
cancellation purposes will be based on the date of purchase of the Contract and the vehicle mileage on such date. WE are primarily
liable to provide any refund under this Contract. If this contract was purchased in Oklahoma the refund will be issued on the above
mentioned pro rata basis less any applicable cancellation fee not to exceed ten percent (10%) of the refund issued hereunder. If this
contract was purchased in Illinois, the cancellation fee shall be ten percent of the service contract price not to exceed $50.00. If this
Contract was purchased in Arizona, Georgia or North Carolina, the refund will be issued on the above-mentioned pro rata basis,
whenever it is canceled. If this contract was purchased in South Carolina, the contract may be returne
On to the contract:
*They've got 'wear and tear' mentioned several times, but it's only in the list of parts covered, as if 'wear and tear' is the name of a part. I think this is meant to confuse and befuddle. This is still a 'mechanical breakdown' contract.
*they will pay 'customary labor'-that means they use their labor time guide and their idea of what the correct labor Rate is. They also decide how much diagnosis time they will pay for. This could be a problem a couple of ways: they pay .5 hr for a problem and the shop requires 1.5 hr. You pay the other hour labor. or They pay $45 per hour-the shop's rate is $65. You pay the difference.
*they have the right to require you to get used parts, or parts 'from our warehouse', rather than new parts. This happens most often with higher mileage cars. (like yours)
*the 'rental' coverage is a joke
*under 'not covered' : normal fluid/oil lubricant seepage. Say What? and what's a Pole Piece? (under electronics)
* if they decide a part is not required for a repair, then it will not be paid for by them.
*it's insurer, First Commercial Insurance Company (Florida) is not rated by AMBest, even though CarChex's website claims they are insured by an AMBest A+ rated company. I can't find much about this company, besides it's been around since 1995. It looks like a fairly small insurance co.
*Warranty America, your administrator, also administers claims for Auto One Waranty, Warranty Warehouse, AA Auto Warranty, and Warrantech. Usually, when you hear a customer complain about a service contract, it's their administrator they're really griping about.
Take the $1800 and save it for a repairs. If you take care of this car, you will have a bunch of minor issues due to age and mileage but nothing major.
Good Luck.
It's obvious that you actually took the time to read the Contract very carefully,
and I appreciate the comments.
If - and that's a big IF - I get a contract,
it will probably be the one my dealer offers.
I know, I've read the comments about conflict of interest,
because dealers may well get a commission for the sale.
On the other hand, this dealer has worked with the Contract,
knows what it covers, and has experience with the Contractor.
Most importantly, this is a small town,
customers are also neighbors,
and dealers depend on good customer relations to stay in business.
So they wouldn't deliberately suggest an inferior product.
I still may follow the advice of most -
especially considering the difficulty I've having getting a loan for the Contract -
and take my chances.
It IS a very good car, and as others have suggested I suspect my chances of any
major problems are slim.
Thanks again for your input.
If, on the other hand, you're suffering from some combination of insufficient savings & too much debt, you'd be better off using the money that you're thinking of spending on an EW to pay down your debt or build up your savings.
IMO, the best extended warranty in the world doesn't hold a candle to a strong balance sheet.
But whatever you do, PLEASE PLEASE, don't make the mistake I did with Warranty Gold, and that's to buy a 3rd party warranty over the internet. When the company goes belly up, and it will just like Warranty Gold did, you'll be left holding the bag.
It is kind of like waiting till you are 80 to buy life insurance. You can find it but it is either going to be real expensive or have more loop holes then you can imagine.
There is absolutely no reason for homesong to even think about purchasing an extended warranty for this vehicle. A vehicle like this you have your mechanic look it over carefully for issues. If you don't trust the vehicle, don't buy the vehicle!
Homesong: Do yourself a favor and read the 2100+ post before your post. After you finish reading, you understand why we are all adamant that you don't buy this warranty and you are flushing money down the drain. it doesn't matter what the contract says. it doesn't matter what the salesman tells you. All these companies that are out of business had similar contracts. If you want peace of mind, take that $1800, add it to whatever you are paying for the LeSabre and buy a car with fewer miles.
Strictly legally speaking you are 100% correct. But I, and most others here, could make a case with the GM of a dealer that sold me the warranty that they should "assist" in any repairs. "Hey what kind of garbage do you sell here at ABC Motors, maybe the local news channel would be interested!". At least try to negotiate repairs be done at their cost.
I've pretty much decided to follow the majority opinion here and forgo the warranty.
First of all, I'm very happy with my purchase,
and don't think I would have found anything I would like as well
for another $1800. I really like this car, and decided on it only after doing my due diligence and running nearly 2 dozen CarFax checks on other vehicles in my price range.
Second, I don't HAVE $1800 right now and would have to borrow it anyway. I also suspect that if I DID have $1800, those who have suggested that it would be wiser to set aside as a "repair fund" are right. I probably won't need $1800 in covered repairs over the next three years anyway [I have an Olds Cutlass Cierra with 220,000 miles on it, and I've never had to have any engine or transmission work done on it]. The money would probably be much better "spent' on an emergency fund than on a warranty!
Third, rather than borrowing $1800 I don't have for a warranty I don't need, I will probably see about setting up a line of credit with my local banker strictly for car repairs. That way, I'd have the peace of mind of knowing I'm ready for anything unexpected without actually having to spend anything if i don't have to!
My only suggestion: instead of applying for a line of credit to be tapped in an emergency, get started on building an emergency savings fund. Open an account with one of the online banks (ING Direct, EmigrantDirect, HSBC, etc.) & authorize the bank to transfer $25 (or more, if you can handle it) per week from your existing checking account to your new savings account.
(Disclaimer: I am neither a shareholder nor an employee of any of these banks.)
Believe me - you won't miss the $25. You can't spend what you don't have.
Whenever you get a raise, increase the amount of your weekly savings allotment. You'll be pleasantly surprised at how quickly your savings build up. Your goal should be save at least enough money to cover all of your living expenses for 6 months. Then, you can handle the occasional emergency - unexpected car repair or even short-term unemployment - without anxiety.
We've been doing this for years. Our emergency car repair fund has grown to the point where we could use it to pay cash for a brand new car & still have money left over. Needless to say, we don't feel the need for an extended warranty.
Nothing gives you financial peace of mind like money in the bank.
Whatever you do, good luck with your new car.
http://www.consumeraffairs.com/auto_warranty/aaa.html
Who backs it? (who is the insurer/reinsurer)
Who administers it?
Just curious...
I am a fool who overpaid and have been mislead. Good luck in not having to use your warranty because it is not worth the paper it is written on.
Thank God you did not pay what I did for Toyota's so called "best" extended warranty.
This is how my story goes down.
My FJ simply dies while running. I luckily pull over and after a few minutes, the beast starts up and runs. I don't know what happened other than it scared the beJesus out of me but I figured it was probably some bad gasoline. There has been a lot of talk about water being added to gasoline and other stuff that lowers octane ratings and louses up performance.
A week later, the FJ does the same thing again except this time it wouldn't start.
I had the truck towed to the dealer and they later called me and told me that there was nothing wrong. I found out that they "made" the car start. If the car starts, then there is nothing wrong and the warranty is not in effect no matter what extraordinary acts it took to get it started.
I called the warranty headquarters and got the run around and they told me that they are happy to listen to problems but they have no authority to enforce warranties and their sole job is to approve dealer invoices not customer problems even though they are called Customer Service...
Yeah, after about 3 months of intermittant and dangerous mechanical and electrical failures that were denied to be a problem. I retained an attorney.
It went down this way. The warranty is strictly up to the dealer to attempt to minimize the impact of costs. In fact warranties represent a huge profit for Toyota and the dealerships. Here's the kicker.
Warranty, especially the Toyota Extra Care Vehicle Agreement derives its appeal to the consumer by inferring the power of bumper to bumper coverage of both electrical and mechanical protection without stating in writing that the customer satisfaction for safety, concerns regarding any failures are to be addressed and it avoids the consumer as being the main focus of determination of defects, breakdowns...the interpretation whether written, inferred or in thought are purely at the discretion of the authorized Toyota dealership management and no other.
This gives the dealerships, because they all go along with this, the sole right to refuse service or to repair anything they want and the consumer has given his or her right to refute any and all claims when they accept the agreement.
Needless to say, I am very disappointed and will never buy into an extended warranty from any auto manufacturer.
Since going through this personal situation and cost. I have heard stories and tragedies that ought to shame the auto manufacturers but they are happy to fool any consumer thinking that they are protected in their new or used cars.
You know that maintenance schedule book you have to abide by to get your warranty active? Forget it. There have been too many times that your records are erased by dealerships on a scheduled basis and you are sitting their looking for receipts that do not detail every aspect of what is required specs and you will be violated in the worst way.
Two high level attorneys frankly stated to me at the golf course club house that extended warranties are like "a waste of money" and rarely can anyone win a case unless they die and only for the cost of repairs and no liability. They will pay amount that your auto insurance will pay and if the amount is more than the repairs, they will not pay anything...
You and I have been taken. I am sorry to share this news flash with you because it cost me 3 months and $7,500 to find out that I have no recourse on a worthless warranty that I cannot get out paying for and I have to trade in a nice FJ, even though I believe it to be a Lemon however, by law and by the records it "starts" and no problems are found...
"For every person with a warranty that gets resolved with a low cost fix, there are hundreds of those with high dollar repairs that go unattended because Toyota Extra Care Vehicle Service Agreement whether Platinum or not are subject to one sided interpretation by those who do not want to incurr costs of fulfilling the spirit of the warranty..." B. Springer Esq.
A service contract is not a warranty. A warranty is not a service contract.
I'm not sure your problem is with the service contract.
Your car was towed in, the techs checked it out and got it to start. It must not have thrown any codes or acted up for them. This is a classic case of 'concern not duplicated'. It happens. Which do you think they'd rather do? Fix the car and get paid by the contract company, or check it out, not fix it, not get paid, and tick off a customer? Did they charge you for diagnosis? (you probably paid for the tow-that's not my question)
The service department doesn't care how much money Toyota's service contract company makes or loses-they care about how much they get paid to do work.
You're best bet is to find another dealer to take your car to. Don't tell them how evil the other dealership is, don't give them the 'I've been robbed' story you've told here. That won't make them move faster. Just tell them the facts-your car shuts down, and will restart if you wait awhile. Tell them if there's a pattern to it-i.e. you drive 20 minutes and it croaks, or every time you do xyz, it dies. An intermittant problem is the hardest to diagnose-don't expect a quick fix.
As for records: it's your job to keep your service records, not the dealership's. They have no control over records from when you had work done at the local Jiffy Lube. We keep records, but it is for our protection more than it is for your convenience.
Re Lemon Law: if you're not covered by manufacturer's warranty, you're out of Lemon Law territory.
Writing the only situation to justify buying would be a make of car with a poor reliability record...Pontiac and Jeep at the bottom.CR wrote extended warranties are "usually a poor deal". :sick:
I wonder what would happen if some one on a limited income took there advice then had there car break down and sent CR the bill? Its pretty easy to tell people how to spend there money when it has no direct effect on you.
edited: My brother has bought a couple Pontiac minivans with a extended warranty. He saved a lot of money in doing so with the mechanical problems he had. But, again, you have to look at a cars reliability record.
A couple of years later, something went wrong with my car (don't recall what it was), & I called the warranty company to see if their policy would cover my problem. Guess what? No one was answering the phones at headquarters. The company had gone belly-up.
That taught me a valuable lesson. If you're worried about the cost of post-warranty repairs, you start putting aside money when your car is new & still covered by the manufacturer's warranty. Then, when something goes wrong (as it certainly will if you keep the car long enough), you simply pay to have it fixed. No fuss, no muss. Until that happens, you keep the interest. (I just HATE letting someone else earn interest on my money.)
I've said it before & I'll say it again: the best EW ever written isn't half as good as a fat, FDIC-insured money market account with your name on it.
I just bought a 2008 Highlander and am thinking of an extended warranty. I've gotten a few online/phone quotes, but all are from around $1k to $3K.
Does anyone know if you can just call a dealership and buy an extended warranty even if you didn't buy the car there?
Any suggestions as to which dealership does this? I'm hoping they'd like to sell another one if the price and terms are right.
BTW, we bought a warranty from Warranty Gold when we bought our 2000 Sienna new, and at around 75K miles it needed a new tranny. They did a powerflush as part of the scheduled maint, and it had a clicking sound afterwards, which they deemed 'normal' (but it didn't do it when we bought it)... it kept ticking, and finally I got steamed enough to go back in and [non-permissible content removed] about it, and was told it was in the tranny and I'd need a new one. The $750 extended warrany by Warranty Gold was the best thing we bought, cause they paid the $3K bill for the new tranny.
They went out of business just after our ext. warranty was up... so I was one of the lucky ones.
That's about a grand less than what Warranty Direct wanted, and almost 2 grand less than what Continental wanted.
I'll be doing the happy dance when we pick up our new Highlander tonight.
Pete
You might have better luck asking other GM owners in a discussion specifically related to your vehicle. You can find them using the make/model drop-down menus at the right, under "browse by vehicle." Please ask if you need help!
MODERATOR /ADMINISTRATOR
Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
Review your vehicle
I would highly recommend the GM warranty ONLY. I expect GM to be in business but have doubts about any of the other warranty companies.
http://www.gmoutlet.com/quote/emailserver/majorguard/mgn_email2008.htm links to a page where you can look up your vehicle class for pricing, the check the price. This is a legit GM dealer that will sell at a reduced price. These tables show the list price and the discounted price.
Back when I had a 'vette I got mine from Ken Fichtner and Fichtner Chevy. If you google up "discount GMPP" or something similar you should find a ton of GM dealers selling the plans cheap online. Check with your local dealer once you find your best online price, perhaps they will match it.
I never needed mine - I sold the 'vette while still under warranty (it was in the shop a LOT), but way back in the day my wife had one on here Cavalier and it covered a broken rocker arm - though they tried to charge her for cleaning up the debris from the brake saying that was not covered
Dennis
FORCED ME INTO AN AUL ADMINISTRATORS SERVICE CONTRACT?
I PAID $1100 FOR A 12 MONTH/12,000 MILE WARRANTY. I NEVER RECIEVED
ANY INFO ON WHAT I PAID FOR!!WHATWILL IT COVER?DID I GET BURNED?SHOULD I FIGHT THIS?
My husband bought a roadside program from clickeverythingauto as well. I think before anyone buys they should review their program. Just my opinion since we had good results.
MODERATOR /ADMINISTRATOR
Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
Review your vehicle
Hope your Highlander does not have the problems that now appears to be a chronic symptom. Hope your Highlander does not stall out while driving on the road.
Good Luck with everything.
Even an original new car factory "powertrain warranty" is not that much good unless you have a serious problem. An idle control valve went bad on a car we used to own and the car could hardly be started and driven and would die at idle. Hey, I though, we are still under the powertrain warranty so lets have the dealer fix it for free. Clearly this is part of the powertrain and the motor will not run without it. Nope, only "internally lubricated parts" are covered by the factory powertrain warranty. I got a used valve for $20 from the junk yard and fixed it myself.
You are not the only one that like peace of mind, that is why the F&I folks can see so many of these at such high prices. No matter if it is high pressure or fear, folks cave in a buy them and usually at a really high price. I have seen folks in the Honda forum deal down to invoice on the car then pay 2x or more in the F&I room for HondaCare than is costs to buy online. They did all their homework on the price of the car then were sand bagged on the warranty.
I would advise anyone looking to get a factory backed warranty to get online price quotes before you buy the car - just like you look up invoice and get quotes for the CAR itself. Then if you decide you want the warranty and they push you in the F&I office you pull out your cheapest online quote for the same policy and ask them to beat it. If they can, then buy it. If they can't, that should at least shut them up
Denns
I will post again when I have more info....
thanks.