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Extended Warranties

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Comments

  • chaim3chaim3 Posts: 4
    If anyone has had or knows of First National, "an authorized agent for SecurePro, administered by the Ultimate Warranty Corporation, and insured by Capital Assurance, I would be very interested in their experiences. They are asking $2,410 for my 2000 Mercedes E320 which is now off the factory warranty, which seems high.
  • I have a 2001 Chevy suburban, and I looked into an extended warranty from the dealer. I was given a price list and depending on the amount of deductible/mileage covered it ran upwards of $3500.
    I just received a letter from United American Warranty giving me a quote of 100,000 mile coverage for $1350, with a $50 deductible. Does anybody have any info on this company? It says it's insured by Great American Insurance Co. Any info would be greatly appreciated.
  • Check out their website at:

    http://www.greatamericaninsurance.com

    After my Warranty Gold coverage became worthless, I took the money I had not yet paid WG and put it into a warranty from aawarranty.com. That coverage is administered by Warrantech but backed by Great American and seems pretty reliable, since GA is into many insurance and financial areas.
  • I have recently bought Odyssey-04 and looking for extended warranty. Has anyone in this group bought one from Honda Care and if yes, what is the cost or best price paid...

    Thank you in advance
  • ateixeiraateixeira Posts: 72,587
    Alton Blakley Honda in Somerset, KY used to sell them online at good prices. My cousin got one through them.

    I'm not sure if she's still there, or if prices have changed since then, but call, it's 800 264-3275.

    Of course I have no affiliation with them or Honda, call at your own risk, blah blah blah.

    -juice
  • I am shopping for an extended warranty for my 99 Chev Suburban. Has anyone heard of Continental Warranty and or had any experience with them ? I have been reading the horror stories on aftermarket warranties. Makes me not want to buy one. Is there any current good experience with Warrantybynet? JR
  • With all the horror stories about extended warranties has anyone had any experience or knowledge of Continental Warranty (good or bad)? They are not an on line company but they do have a web page and a call center. Any information is appreciated and can be e-mailed to me at [email protected]
  • I made a mistake of applying over the internet. I got so many calls from their sales people, even after declining them each time.

    What I did not like with them was that they refused to send me an email detailing a copy of their contract. Warranty Gold, Warranty Direct and 1Source Auto Warranty all sent me a copy of their contract for me to peruse. I told Continental warranty that after my experience with Warranty Gold, I was not about to fork out my credit card and send them money without taking a look at what I am signing. I mean they could send me a contract that said ... "Thank you for the money, have a great day... now get lost" and I would be screwed.

    Continental warranty also said that they did have a 0 deductible warranty. I told them that I was not interested. Some of the sales people were rude. The next day I receive another call regarding the purchase of extended warranty. Today I got my third call. I told the woman that I had only applied once and I had finished speaking with them. She said that she had got another printout of my applications, therefore I had applied again. Even my cat has more brains that her.
  • Has anyone else had any experience with Continental Warranty ? Thanks to 2CRNOT2C for your comments. I ordered the Continental Warranty so I could review the entire package. As much as the phone person kept saying you could take your vehicle anywhere to be repaired. The first thing that is said that all repairs must be preapproved. My brother has an extended warranty on a vehicle, and he said the repairs usually take days because the repair shop can't get anyone on the phone.
    I spoke with the Chevy dealer I use and he flat said, he won't deal with any of the warranty companies, except GM. He will want payment first and then let you fight it out with the warranty company. I believe that will be the case with most repair shops. For a couple of hundred more I can get the GM warranty and not go through any of the hassle. Or, I might just try my luck and not get one at all. The most warranty I can get for a reasonable price is 36mos/36K miles. I usually keep a vehicle for 100k.
    Now I try to get my down payment back. Wish me luck.
  • q45manq45man Posts: 416
    Be very very very careful about purchasing ANY non factory backed Service Insurnce Policy.
    We deal with about 8 different ones currently. They have all become resistive [in the last year] to accepting claims and now send out inspectors [sometimes after a week or two] to evaluate [look for any possible way out of paying]. They decline more than 50% of the recent claims we have seen. After approving the work, they then try to nickel and dime the labor rate and want non oem parts.

    Personally I won't deal with any of them any longer after this year, suggesting that the customer find another place to have the work done or pay us and recover themselves.

    If the factory/dealer wants $3500 assume the real amount less commisions is $2,000.......how can someone offer it for $1350.......they are not going to pay that's how! A contract doesn't mean much if the company goes out of business.

    Be very very careful!
  • brozhnikbrozhnik Posts: 172
    I'm thinking of buying an extended warranty for my new Passat. Warranty Direct would cost about half as much as the dealer. That's enough to appeal to me, and their marketing addresses my concerns: "Fact: No hassle claims process. Claims authorized in an average of 6 minutes, no
    paperwork or billing hassles. Payment made immediately upon completion of repairs to
    repair facility via corporate credit card.
    "Fact: Over 18,000 repair facilities do business with us.
    "Fact: Our Better Business Bureau report shows ZERO complaints in the past 12 months. We processed over 108,000 claims in the past year. When your vehicle breaks down, we
    pay!
    "Fact: We have over 23 years experience, documented financial stability and the most
    solid insurance backing in the warranty industry."

    There's more, but these claims address my main concerns-- that they'll try to weasel out of paying if I have an actual claim, or that they're likely to go belly-up. But before I sign up, I thought I'd ask on this board to see if anyone has knowledge, experience, comments (positive, negative, neutral, whatever) about Warranty Direct. Should I go with them, or spend an extra thousand for the dealer's extended warranty? (Or not get an extended warranty at all?)
  • driftracerdriftracer Posts: 2,692
    I'd like to see the stats for submitted claims versus paid claims and see how many claims they wimped out on - at your expense.
  • on the extended warranty.

    Think about it. For the extended warranty to be feasible to sell, the cost has to be high enough to cover average claims plus admin costs plus sales commission, plus, plus, plus . . . . .
    Unless you have much worse than average luck, an extended warranty costs far more than the repair costs it covers.
    From another perspective, an extended warranty hedges your risk - like an insurance policy. Hedging a risk that you can handle easily and paying for the hedge makes no sense at all.
    Unless an extended warranty includes some services (loaner car, roadside assistance, extra coverages, etc.) that you can really use, it's better to put the cost aside and pay for repairs yourself (self insure).
  • q45manq45man Posts: 416
    What most don't understand is the exclusion list contains the things are are likely to go wrong.
    Failed hoses and other rubber isolated components, seal leaks, overheating, wear and tear items.

    Even with an extended service insurance contract maintenance and repairs are like to exceed 8 cents per mile from the end of warranty to 100,000 miles........the question is out of the $5,000 how much is covered.

    Factory backed policies usually have fewer exclusions and the dealer can usually talk their way around them with factory.

    Unless the non factory company is in trouble a properly compensated technican/shop owner can usually at least get your initial money back before the resistance starts.
  • ateixeiraateixeira Posts: 72,587
    A rep from Subaru, whom I know well, claims Subaru actually loses money on their Gold warranty. Dealers have a small margin, sure, but shop it around and it's not much.

    But yeah, my wife got 7 years of roadside assistance, which by itself would cost $497. Then factor in the improved resale value if you sell just before it expires, plus you are getting OE replacement parts for anything that fails.

    You really think a non-manufacturer warranty is going to buy you OE parts? Hah!

    Then consider that the dealer gives her the red carpet treatment, loaners for service, VIP treatment overall. Last service visit she had our loaner was a Mercedes Benz C240 4Matic wagon. Her car is a Legacy wagon and she asked for an AWD wagon loaner, and got one!

    OK, I'm sure she's not getting a Benz every time, but you get the point. It's hard to quantify exactly the "value" of that vs. just getting a Cavalier, but it's worth something to me.

    Someone who bought an Outback paid $700 for a 7/70 with no deductible. Assuming he does not drive more than 70k miles in the first year, that's a killer bargain. Do the math - if you subtract the roadside assistance (which we were paying for) that is $203 for an extra 4 years of bumper-to-bumper coverage, or about $51 per year!

    -juice
  • For those who would normally be a AAA customer the roadside assistance component of the extended warranty can offset a large amount of the cost. I don't know what AAA charges however at least in the case of a Subaru there is up to 7 years of RA depending on mileage driven and extended term selected. If the cost of 7 years of AAA is deducted from the cost of the warranty it makes the annual cost very reasonable.
  • q45manq45man Posts: 416
    Road side assistance? What's that. I use ultra premium tires and change them frequently [at least every 2 years-25k] in 20 years never had to use a spare in over 440,000 miles of driving. Always carry a charged jump box to help others. Had to use it once on mine back in 1994..[after the car sat at airport for 27 days]....change batteries every 3 years. Even change bulbs when it is easy ---they all have a listed hourly life.

    Preventative maintenance......change things before they fail! Hate the thought of some failure in the rain between exits.

    Sure it cost more than road side assistance but so what.......unscheduled time is more valuable.
  • nortsr1nortsr1 Posts: 1,060
    I just received a promotional brochure from AAA and the charge is 51.00/year but they were offering $10.00 off of that price...so it would be $41.00 the first year and evidently, $51.00/year after that. Incidently, if you purchase their plan, your membership entitles you to use the Roadside assistance no matter what car you are in and it doesn't matter if you are the driver or the passenger. That's a pretty good option.
          I do not work for AAA.
  • jimbresjimbres Posts: 2,025
    Good post, rivertown. I'm in complete agreement. Self insurance is the way to go unless you lack financial discipline. Big corporations do it, & you can, too.

    A basic principle of casualty insurance is not to pay a third party to assume a risk that you can handle yourself. I carry homeowner's insurance because I can't pay the 6-figure cost of rebuilding my house if it burns down. But I can certainly absorb a 2 or 3 thousand dollar car repair bill. I'll be cranky as hell that week, but I won't have to postpone retirement or do without a vacation. (Incidentally, the largest repair bill that I've had to cover during the past 30 years was $1,300.)

    For real peace of mind, a fat savings account (or money market fund) with your name on it beats any extended warranty. No need to wait for an adjuster to OK your claim - you're the plan administrator & you write the checks.

    One more thing to remember: the cost of keeping an out-of-warranty car running is in most cases more than offset by lower depreciation expense. Your new $25K car will shed at least $5,000 in value during its 1st year on the road, while my comparable 4-year-old car won't give up much more than a thousand. That's $4K in my favor, & that will more than cover the expensive tranny repair that seems to terrify some of you.
  • ateixeiraateixeira Posts: 72,587
    OK, add up the extra cost of those tires, batteries, etc, and you pay for a good portion of that warranty, though. Plus, you've just been lucky.

    My wife has already had a flat (on a new tire). Point being there's still no guarantee that new equipment won't fail.

    Or you might run out of gas, or lock yourself out. To err is human.

    -juice
  • lib4lib4 Posts: 1
    Thanks to all for their comments on extended warranties. It has helped me better understand this risky investment, however, I'm troubled with the ownership of a high maint. intensive vehichle (Land Rover) and would like any advice on the best company out there. I've received quotes from Auto Advantage who deals with Milenia PEAK 2000, as well as from warranty for wheels. Any comments on pros and cons from either of these companies would be greatly appreciated.
  • nortsr1nortsr1 Posts: 1,060
    I am not a supporter of non factory backed leases. I do not know about a factory warranty for a LandRover. Have you tried the AAA warranty? I don't belong to Triple A {AAA}, however; it seems to me that a company that large would back their warranty program. You can always call your local AAA and get more details. It would also be wise to check with whomever does your repairs to see what extended warranties they will or will not accept. That is VERY IMPORTANT!
  • Well the extended warr I had with Warranty Gold is now worthless. I have been searching for a replacement and found Continental, they are hard sell but that would be ok if they will be arround. Been unable to get a financial rating. Anybody have any experience with them or recommend another company? I have a 2000 dodge caravan 38k miles.
  • akanglakangl Posts: 3,651
    We recently purchased a used 99 Dodge Ram at a Ford dealer, they sold us a 24 mo/24k warranty (backed by Ford) with the truck. We had thoughts of cancelling it and going with Warranty Direct (could get a longer warranty for the same amount of money), asked at a couple dealers (Chrysler and Ford) they all said don't go with any aftermarket company, nothing but trouble. Just food for thought.
  • ateixeiraateixeira Posts: 72,587
    Actually, ask your mechanic. They'll know which companies honor claims, and how much one is needed in the first place.

    -juice
  • Just found out that my extended warranty policy purchased 17 months ago with 20 months left is not worth the paper it's written on. Warranty Gold blames the Cayman Island based company they hired for claims processing and administration, Seems National Warranty, who just took out a huge chunk of money to cover insurance to cover their executives two weeks before,is insolvent. Warranty Gold is still selling policies now with a different insurance company and administrator. They just tell you to file a claim with the bankruptcy court and maybe in a year or two you might get a pro ration of your remaining policy back after the lawyers get done draining the account. Fool me once shame on you, fool me twice shame on me. I've learned my lesson on extended warranty contracts-they are the only ones that come out ahead.
  • I've learned my lesson on extended warranty contracts-they are the only ones that come out ahead.

    If you buy a factory extended warranty from a car dealer instead of a fly-by-night warranty, you're getting something backed by a real company. I look at OEM extended warranties as relatively cheap insurance against mechanical failure. In all my years of owning cars with OEM extended warranties, I've made far more claims than I've paid in premiums. I can't say that about any of the other kinds of insurance I buy.

    The lesson you should learn is to investigate the financial stability of an insurance company before you do business with them. You can get just as screwed with life insurance or homeowners insurance as you can with extended warranties.
  • ateixeiraateixeira Posts: 72,587
    Look at the other perks, too. Roadside Assistance, for instance. If you are paying for that anyway, you recover half the costs.

    An example. My cousin got a 7/100 for her Ody for $700. She cancelled AAA and saved $497 right there. So the warranty cost her $202 more than she would have paid anyway.

    For that she got 4 years more warranty, or $50.50 per year.

    Folks, that $4.21 per month! And I'm talking only those extra months when she's fully covered, bumper to bumper. FOUR BUCKS!

    Automakers sometimes lose money. Dealers profit on their commission, sure, but manufacturers are out to establish a good will with the customer, even if it means not making a profit.

    -juice

    PS Note: warranty prices have come up lately, proving that Honda probably was taking big losses on those
  • Last month I purchased Sienna LE 04. I spent lot of time reading and understanding warranties offered by third party. In California limited warranty companies are offering their product. I read and compared terms and conditions of WarrantyDirect and 1Sourceautowarranty with Toyota Platinum warranty.
    Finally, I decided to buy extended warranty Platinum 7/100K (zero deductible) for $ 1100 from Toyota dealer (after negotiations).
    The price quoted by above two companies are not cheaper than that of dealer's quote. The main advantage I could find was none of those third party insurance company covers emission system. This Platinum extended warranty is exclusionary and minimum # of the items are excluded. Chances of belly up of Toyota vs third party insurance company is pretty obvious. Original parts would be installed for the failure and would honor their reputation for the warranty.
  • brozhnikbrozhnik Posts: 172
    I've pretty much decided to get an extended warranty (7 years, 100K miles) for my new Passat, so I'm here to ask not whether, but which. Here are my options:
    (1) THe local (semi-rural) Volkswagen dealer who sold the car to me wants $2000 for a warranty provided by "Equis"
    (2) A Volkswagen dealer 300 miles away (in a big metropolitan area) will sell me a similar-sounding extended warranty from "First Automotive" for much less-- $1295
    (3) Warranty Direct will sell me one directly for $1150.
    Option 2 seems like a clear winner (from a dealer, but almost as low as Warranty Direct). But... are there caveats? Has anyone heard of "First Automotive"? Will it, or Warranty Direct, or for that matter Equis, turn out to be one of those warranties that doesn't actually pay up? Or is the lower price of Option 2 just reflecting the economies of scale of the larger dealer? Or what?
    Thanks! Any advice appreciated.
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