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Extended Warranties



  • delthekingdeltheking Posts: 1,152
    Again all 3rd party warr companies irrespective of how big they are like Zurich, JMA, CNA, Allstate, Wachovia, etc. as you suggest are useless.Warranty Gold was a big company with good BBB ratings.Look what happened. They went BK.
    So never ever buy an ext warr from any 3rd party.Too many folks have been burnt by these crappy 3rd party warr.Always buy a manuf ext warr whether it be a GM/Honda/Ford/Toyota etc. :shades:
  • nortsr1nortsr1 Posts: 1,060
    I always buy the factory OEM warranty...but what about AAA. I never see anyone posting about this and yet they are a reputable firm that has been around like forever????
  • delthekingdeltheking Posts: 1,152
    AAA only provides insurance not extended warranties.Funny thing is,I called them and they said they do not provide ext warr but suggested to me to buy the Manuf warr and never a 3rd party one because in their own words- "We are not hearing too many g0od things about the 3rd party ext warr"" And I was pleasantly surprised with this honesty ;)
    Well it cant get clearer than that.Even AAA advised me to stay clear of these 3rd party warr and to only buy the manuf ext warr..Go figure!! ;)
  • jipsterjipster Louisville, KentuckyPosts: 5,738
    You sure about that? I saw a AAA ad for extended warranty a few months ago.
  • delthekingdeltheking Posts: 1,152
    Yes, I am sure because the AAA sales rep himself told me on the phone.And he himself advised to go with a manuf ext warr. As I have auto insurance with them and I was talking about my policy with them,out of curiosity I had asked him about AAA auto ext warr and that`s when he gave me this info.. :shades: I was impressed with his honesty. :)
  • bekins2bekins2 Posts: 29
    Curious,when i went to GMAAP? and filled out the info all i got was different dealers,who would not give me a price till my 12/12000 GM expires.I just wanted to get the onfo so i could budget the money for when it ends in a year.Is this normal and does anybody know do different dealers offer different prices?Is there a way to get a ballpark online for GM?Just want to have the money in hand and not get raked over the coals in 11 months. Thanks for any info.I tried the GM forum but didnt find the warranty part.
  • look up - they can probably help you
  • I know you "regulars" know all, but you are painting with too broad a brush. Gm itself is a bankrupt company. And while our also "all knowing" government is propping them up, they would have ceased to pay claims under a true bankruptcy. ANY company can fail. Warranty Gold was not a multi-billion dollar company. Warranty Gold was not the administrator and insurer of their contracts. A BBB rating is meaningless because there aren't complaints until the company starts to fail.
    If a buyer takes a couple extra minutes to find out if the the warranty provider is the same comapny as both the administrator and insurer, if all those entites are A rated or better by AM Best, if the company is long running and well capitalized they are just as good as a manufacturer.
    The examples always sited do not meet these tests. I know for a fact that name brand companies like the ones I have described pay out 75-80% of premiums in claims - just as manufacturers do.
    Bottom line - do your homework.
    Fire away, guys
  • Kirstie_HKirstie_H Posts: 11,077
    I just put a link in the header of this discussion to a new article on the site, outlining the pitfalls of some of the third-party warranties.


    Need help navigating? [email protected] - or send a private message by clicking on my name.

    Share your vehicle reviews

  • mitzijmitzij Posts: 613
    75-80% of premiums paid out in claims?
    No business can survive with 20-25% markup.
    Have a link to back up this figure?

    Warranty Gold was AMBest rated A+ a couple of months before they folded.
    They were also around for about 20 years.
  • raa1raa1 Posts: 16
    he quoted me $1789 for a 4 year 60K miles for an 06 Corvette. I think that if you shop around you will get diffrent quotes from different dealers, at least that was the case when i was shopping for such onmy 02 EScape a few years back
  • wlbrown9wlbrown9 Posts: 867
    Current pricing is located here

    Look up your vehicle class... Exa, my Saturn Outlook 2008 with less than 12000/12 months is now a class C3... When I purchased in August just before my 12 months was up it was Class C
  • if the premium on a warranty is $600, typically $450 to $480 is paid out in claims. This is the profit of the warranty provider, not the dealer. Not to tell you too much personal info but I know this from an accounting position I had with a firm that specialized in car dealers. The larger ones often have reinsurance companies that are off shore entities. They essentially own their own warranty insurance company and the dealer makes that 20-25% in underwriting profit in addition to the profit from the retail sale of the contract. It can be a very big piggy bank whose capital appreciation is non US taxable until it is repatriated.

    Also Warranty Gold was not Am Best rated at all - the insurance company that backed those contracts was. I would have to check but it was likely a risk retention group and not an insurance company at all. An RRG acts as an insuror but is not subject to the same reserve requirements of a true insurance company and is generally grossly undercapitalized.
  • delthekingdeltheking Posts: 1,152
    Just read this article .And as always 3rd party warr are junk,crap worthless.No amount of justification is going to change that fact. :lemon:
    Chrysler CEO can say his cars are the most reliable on this planet.Is it true?? Hell no.Anyone can say anything he wants. But the bottomline is always the same--3rd party warr is junk! :sick:
    link title
  • delthekingdeltheking Posts: 1,152
    Check the facts.Warranty Gold was AM Best rated before it went kaboom!
    here`s the link:
    link title
  • euphoniumeuphonium Great Northwest, West of the Cascades.Posts: 3,425
    you shouldn't have bought that vehicle in the first place. ;)
  • mitzijmitzij Posts: 613
    Oh, I see! Your 'Premium' is the money the service contract company receives, not the amount the customer pays out. That makes a big difference! The middleman, be it the dealer or a website, makes a sizeable profit on top of the 'premium'. The average consumer would think when you say '80% of premium' that you are talking about the amount he forked out for the contract.

    I find it very unusual that a company would only have a 20% markup, considering overhead, personnel, and other costs.

    Yes, Warranty Gold had a risk retention group.
  • delthekingdeltheking Posts: 1,152
    Yes,Warranty Gold was a scam !! A rip off company!! :shades:
  • oldfarmer50oldfarmer50 Posts: 13,586
    "...You shouldn't have bought that vehicle in the first place..."

    Exactly. When I bought my wife's car that's pretty much what I told the F&I guy who was trying to sell me a third-party warranty for $1300.

    2019 Kia Soul+, 2015 Mustang GT, 2004 Chevy Van, 2000 Chrysler Sebring convertible

  • bekins2bekins2 Posts: 29
  • bekins2bekins2 Posts: 29
    Just curious on my last car a 2006 impala with 7k bought in 08 at Carmax they said i had 5mths remaining on the origansl warr.I purchased their (best) extended for 1695.00 for 7yr 7500.50 ded if u brought it to CM 100 if brought to like GM.I used it once for defective manifold gaskets the bill was 900 when i totaled my car recently they refunded me 1025.00 for the unused part of the warr.My ? after reading the posts is it was a 3rd party by CM right? And was i just lucky? I thought the warranty was Carmaxs but i guess i was wrong according to these posts i guess.Also i thank everyone who responded to my ?s ill stick with GM after the certied warrant wears out at 12/12000.Thank you guys for the info Al
  • corvettecorvette United StatesPosts: 6,941
    Carmax states pretty clearly on their website that "their" warranties are issued and administered by third parties and not by Carmax themselves.
  • I have a postcard and an offer from a Company named Dealership Waranties for $2.600 to provide a major component warranty for 5 years and 150k miles beyond the 88k that I already have on my 2003 xc-90 Volvo.

    There is no option foe a Volvo warranty on this old a car.


  • raa1raa1 Posts: 16
    be careful, there are so many out there. I have not heard of these folks. If you most have the warranty, check who the mother insurance holder is and how financial solvent they are, the with the BBB for complaints. One last suggestion, call the Vovvo shop and ask if they have ever worked with them. Hope this helps. Rudy
  • It is highly likely that this will not be a good option for you. A warranty is basically a promise to perform a service in the future. Pay me now and I promise to pay you later. While most on these forums say manufacturers or nothing, or all 3rd party warranties are useless, this is too broad a brush. If the company is a household name and is vertically integrated (the company, the administrator and the insurer are all owned by the same multi-billion dollar company - like the manufacturer) it is a pretty safe bet they will honor the agreement. There is a reason that no one but a no name company will sell such an agreement for so long a time on a breakdown prone vehicle with so much mileage - they have no intention of paying. Good luck!
  • mikefm58mikefm58 Posts: 2,882
    have a postcard and an offer from a Company named Dealership Waranties for $2.600 to provide a major component warranty for 5 years and 150k miles beyond the 88k that I already have on my 2003 xc-90 Volvo

    Hmmm, let's see, they're going to warranty a car up to well over 200K miles. If it sounds too good to be true, it probably is.
  • delthekingdeltheking Posts: 1,152
    Doesnt matter how big a 3rd party aftermarket warr company is-all are useless crap that cover nothing.They all try to use inferior aftermarket parts and do not cover any repairs for the full cost.If they did ,they would go out of business.A manuf warr is more towards the customer.The carmaker would always like to keep the customer happy.A few posts back,I had posted links to CR,Edmunds and msnbc-which all had articles stating that these 3rd party warr are crap. :lemon:

    Even Warranty gold was a billion dollar business and rated by BBB-but it went bankrupt.The Nissan/Toyota/lexus dealers where I take my car to-all refuse 3rd party warr as they dont pay any claims and keep then on hold for eternity and just give some bull info! :sick:
    From your posts it is obvious that you work for one of these worthless 3rd party warr companies which are all scams and rip people off.

    So buyer beware please...As stated before on these posts--all 3rd party warr are useless junk that pay no claims or can go bankrupt anytime.Always buy a Manuf ext warr at your local dealer or any dealer in the US online. :shades:
  • rayainswrayainsw Posts: 3,029
    2016 BMW 340i
  • ejonesejones Posts: 10
    Hi everyone,

    I'm helping my parents purchase a new truck. They want to purchase an extended warranty (they are in their 70s and value the peace of mind it provides). I've pretty much narrowed it down to Warranty Direct or GM. Here are my questions:

    1. Are there any other companies I should consider?

    2. Any advice about Warranty Direct? The quote I have for them for the Elite Plus plan is $959 for 6 yrs/100k. Is that price negotiable?

    3. What is a fair price for a GM warranty? They will probably want the 7 year/84k version. I've read that the markup is about 100%. So my plan would be to cut the price offered in half and be willing to accept a 10-20% markup.

    Any other advice is appreciated as well.

    Thanks in advance!
  • I'd take a look at or - these sites sell discounted GM and Wachovia service contracts. A lot of people in these forums have had success with them.
  • ejonesejones Posts: 10
    Carnetguy - Thanks for the advice. I'll gonna check out those sites right now.
  • ejonesejones Posts: 10 is an excellent resource. Getting an online quote is kind of a convoluted process, but it's worth the effort.

    For a 2009 Silverado, it is $1280 for the "Major Guard" (most comprehensive of the three options) plan, which includes 7yr/84k of coverage and a $100 deductible. List price for this plan is $1755.

    Also, no sales tax if you live outside the state of PA.
  • ejonesejones Posts: 10
    Final Update:

    Using the quote of $1230 ($1280 - $50 discount through 10/31/09), I got the same coverage through the dealer (84mo./84k; $100 deductible; Major Guard plan) for $1180.
  • The other big company is Assurant which you left off your list. Wachovia was formerly GE which was Old heritage insurance company. CNA is having financial difficulties, so I would not buy that.
  • delthekingdeltheking Posts: 1,152
    All extended warranties are worthless regardless of what dealers say. Warranty gold was AM best rated and BBB rated .It went kaboom. They have lots of exclusions. 1% maybe OK . So 99% are crap shoot :sick: . Search for a needle in a haystack that you may never find. Or buy the haystack ,that is , the manuf warr . Always buy the original Manuf warr from the dealer or any dealer online,not a 3rd party crap shoot aftermarket warr. :P
    Your 1st two posts promote a company .No soliciting allowed. Guess the mods will get busy here. :shades:
  • bekins2bekins2 Posts: 29
    Thanks man i did some heavy duty research for a ext warr for my 2005 LaCrosse CXS with 41000 on it.Your DEFINITLY right GM or whatever brand of car is ONLY way to go!You saved me some future headaches,GMPP will be covered by govt even if GM goes down thank you very much
  • delthekingdeltheking Posts: 1,152
    Just wanted to correct my statement-- It should say -" All 3 party aftermarket ext warr" and not just " All ext warr" Buy only the manuf ext warr,not a 3rd party aftermarket worthless piece of crap. :shades:
  • My wife's BMW CPO warranty will expire in 2 weeks. I have a Porsche Boxster S whose factory warranty will expire in 6 months.

    Since they are both expensive cars to repair but have low mileage, I would prefer to have an extended warranty. My 1999 Porsche Boxster had a blown engine (luckily covered under factory warranty) and a number of repairs that more than paid for itself (used Warranty Direct). Unfortunately, the pricing for the WD warranty on my first car was $2k. Now they want $5k for my wife's car and probably $5-6k for my Boxster.

    Is there anybody else who is reputable?

    I won't spend $10k on policies for both cars but would spend closer to $5k.

    Any ideas or suggestions?

    Unfortunately there is no Manufacturer Extended Warranty available on either car...
  • mikefm58mikefm58 Posts: 2,882
    Any ideas or suggestions?

    Yes, buy a Honda. Just kidding, few here will recommend anything but a manufacturer backed warranty, too many of us have been burned by 3rd party warranty companies like Warranty Direct.
  • I recently purchased a Ford Focus. Prior to purchasing it, I visited some websites selling the Ford ESP. I was a bit puzzled by the cost, because after being quoted a price for the warranty with no miles, or a few hundred miles, on the car - I decided to see how much the price would go up if I purchased it later. When I entered 6,000 miles or 10,000 miles the price was actually CHEAPER than if I had no miles on the car.

    I purchased a CNA policy on the car when I purchased it (October 31). I am still within the period to cancel and receive a full refund. The finance manager began by "knocking $800 off" to bring the price to $1650. He eventually reduced the price to $1400. But as this price was added to my financing, I am paying interest on the amount, and it looks like some sites sell extended warranties interest free.

    The finance manager did tell me that though the package has a $100 deductible, their dealership waives the deductible if the repair is over $300. I am not certain how much I can rely on this occurring when my extended warranty finally kicks in.

    I am leaning toward getting the Ford ESP, though the dealers seem to be more prone to push the CNA.

    I would appreciate any input in a comparison of the plans - and the best place to purchase them.
  • delthekingdeltheking Posts: 1,152
    As has been said so many times before on these threads, always Always buy the original Manuf warr from the dealer or any dealer online,not a 3rd party crap shoot aftermarket warr. So always buy the Ford manuf warr if you have a Ford.

    3rd party warr are all very limited and rip offs.You can buy the Ford ESP at your dealer or any Ford dealer in the US online .
  • raa1raa1 Posts: 16
    I hope what you paid was for the 7 yr 100K warranty, otherwise you paid too much. However you made the right choice by going with the Ford Warranty Instead of a 3rd party warranty. I got my 7 yr 100k warranty on my 02 escape back in 2003 for $995.
  • Thank you for your response. I am glad I found this forum because I have been trying to research extended warranties and I found this forum very helpful. Both dealers I was serious about buying a car from seemed to push the CNA warranties.

    But after reading this thread, I am beginning to realize that could have more to do with them making a bigger profit on the initial sales, and a bigger profit on the repairs.

    Of course, they promote it as the "better warranty."

    I do notice that the online sites vary somewhat on the prices of the warranties. And again, I was puzzled that I was getting quoted a higher price to buy a Ford ESP with zero or a few hundred miles than I was with 6.000 miles or more.

    Does anyone have any suggestions on the best place to purchase a Ford ESP, or the best time to purchase one?

  • Yes, it was a 7 year 100 k warranty. That is the kind I want.
  • delthekingdeltheking Posts: 1,152
    Do a google search for Ford Esp or do a search for Ford Forums. These forums have vendor ads from dealers that sell Ford warr. And most of those forum members buy from that vendor dealer. But a Ford manuf warr is the best to go . No way a 3rd party warr can be better than the manuf warr. They can go bankrupt anytime. And they dont pay any claims.

    As to why the warr is cheaper with a car with 6k miles- My guess is that the car has been broken in,it has been driven for a few miles,so probably it has no problems at all. Whereas a new car is not yet driven and as of now it still is relatively unknown. I know it sounds weird and indeed it is, but that`s the best I could come up with. :confuse:

    Also there is a thread in Edmunds forums --Ford ESP online-- I think that`s the best place for your Ford manuf warr. :shades:
  • Thanks. I am getting there. I just retired my 1997 Chevy Lumina (or it retired itself) with 199,000 miles - and I bought that used - so I haven't dealt with extended warranties for a long time.
  • Hi,

    I'm planning to buy a new 2010 honda civic LX and I'm wondering how much would the warranty cost? And for how long?

    Thank you.
  • Don't rely on any deductible reducing scheme unless it is on the contract. Most new car warranty plans expire at a given mileage, so if your car has 6000 miles on it there are 6000 miles gone already off the coverage. ie a 70k warranty on a 6000 mile car is really a 64000 mile program.
  • tacomaguytacomaguy Eugene, OregonPosts: 41
    We have an AWD 2005 Freestyle Limited. It only has 22,800 miles on it after almost five years now. We love the car and will probably keep it for at least four or five more years. I'm worried about the CVT, steering, electronics. I called Access Warranty and didn't like their high pressure. The guy I talked to said "their company and Interstate" were the best in the business. After reading these posts, though, I'm about ready to go with Ford Warranties. Anyone have experience with Interstate or Ford ESP? Is the "FORD ESP" actually a Ford warranty or is it just a third party who sells a policy with the name "Ford" in it? How about transmission repairs on this "CVT" transmission. I've read that most shops replace rather than repair this.. $6,000!
  • I have a 2005 Saturn Vue with 68,000 miles on it, and I'm the original owner. When I bought the car, the dealer "threw in" a 60,000 mile warranty, which has expired. I am considering keeping the car and driving it as long as it will last. But I'm leery of future repair costs, since I've always traded cars in after four years. The car is in pretty good shape, (last year I had to replace the brakes and struts), but the rear wheels are now making a load roaring sounds while driving (dealer told me the wheel bearings need replacing on the rear 2 wheels for $1,000.+). I've been advised to purchase an extended warranty, and contacted my Saturn dealer who told me they couldn't sell me a manufacturer backed warranty since my original warranty had expired, but they could refer me to a 3rd party company which they liked, either UAL or CNA. I called them both and read their contracts, but both are only for mechanical breakdowns and not for wear and tear or overheating. The fine print is pretty eye-opening. I checked into the AAA referred company backed by Enterprise Financial Group, and they offered the same thing. None of these options sound good to me, and they all want $2,100 - $2,700. for a 4 year warranty. Is buying the factory backed warranty GMPP online a good way to go? Has anyone had experience with them they could share? Would they sell me an extended warranty if my original one expired and the car has 68K miles. I keep going round and round on the question "buy a warranty vs. save your money for repairs vs. trade now." I"m trying to make the best decision that will be most financially responsible but haven't found an option that feels right. Thanks!
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