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Warranties Backed by a Risk Retention Group

angelloveangellove Member Posts: 14
On June 10, 2003 I wrote in the "Warranty Gold" Claims discussion how the failure of National Warranty Risk Retention Group would affect the Warranty Gold customers (message #639 and #642). At that time respondents thought my logic was flawed. As it turns out I was correct.

Now I am writing to you about 2 other warranty companies that are backed by Risk Retention Groups. As we have learned from the Warranty Gold/National Warranty RRG debacle the damage to the consumer is immense. What we don't need are more people to be victmiized as the Warranty Gold/National Warranty customers were.

1. Interstate National Dealer Services (INDS) - A.M. Best issued a press release on December 23rd downgrading National Service Contract RRG from A- (excellent) to B++ (very good)with the rating still under review with negative implications. In case you don't know National Service Contract, RRG is majority owned by Interstate National Dealer Services (INDS). I can remember all too well how quickly National Warranty fell from grace as soon as AM Best dowgraded them.

2. First Automotive Service Corp - aka First Automotive Insurance RRG. On January 12, 2004 the Texas Department of Licensing and Regulation issued a press release on the following:

"The Texas Department of Licensing and Regulation (TDLR) has obtained a permanent injunction ordering a New Mexico service contract provider to stop offering or selling extended warranties for automobiles in Texas for which it lacks proof of adequate financial security.

Judge Suzanne Covington of the 201st District Court in Austin Monday ordered First Automotive Service Corp. (FASC) of Albuquerque to stop providing, offering, advertising, selling or marketing service contracts unless it can show that the policies will be properly backed".

If you remember First Automotive Service Corp is the new administrator for Warranty Gold!!

I only hope and pray that these two companies don't continue to slide like National Warranty did. What we don't need is more consumers facing the same problems we all did since the National Warranty failure.
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Comments

  • mitzijmitzij Member Posts: 613
    Hopefully, consumers will find out about WG and other companies that leave people holding the bag BEFORE they buy service contracts. An 'extended warranty' for your vehicle is a money-making project for these companies. The vast majority of people won't see a return on their money, even if the company stays in business. The cheap service contracts are cheap because they don't pay for many claims. The expensive ones cost more because car repair can be expensive. For a service contract, you're basically pre-paying for repairs. It's a risky venture to give someone your money with the promise that they will pay for repairs you might need someday in the future.
  • driftracerdriftracer Member Posts: 2,692
    and it'll probably be moved, but in any case, aftermarket "warranties" are profit oriented for the dealer and underwriter, and a loser deal for many consumers.

    If you're going to buy a contract, get a real warranty from the manufacturer, or just save your money.
  • mr_gannosukemr_gannosuke Member Posts: 1
    most of all the online warranty companies now use the risk retention groups(RRG), it is a way that they can get around paying claims. RRG's are small companies that aren't worth anything, they don't fall under any scrutiny, they don't meet any regualtions and thats plainly enough the consumer gets trampled on. AVOID COMPANIES LIKE WARRANTY GOLD, WARRANTYBYNET, these companies are famous for giving the customer the old screw. Keep your money chances are you may or may not need it, it is a calculated risk just as anything other type of insurance. But let me leave you with this, if the GOLDs and BYNETs, were that good they wouldn't be paying for advertising all over the net, (word of mouth is the best advertising), and message boards would not have people writing about the bad experiences with them.
  • xpfshostxpfshost Member Posts: 35
    Can you post where you found the info on INDS and the fact that their review is still open and that they own NSC? I called Interstate today and they said that their review is closed. They also said that they are the only RRG rated by A.M. Best. They said the B++ rating was a result of A.M. Best nervousness over the Warranty Gold fiasco. Not sticking up for anyone...just want the facts laid out and backed up.

    xpfshost
  • mitzijmitzij Member Posts: 613
    Under 'news', AM Best company number 11820. Lists a press release dated 12/23/03, Oldwick, NJ. Might be just nervousness, but I'd be nervous, too.
    I think www.ambest.com will get you there.
  • angelloveangellove Member Posts: 14
    Sounds like Interstate is not telling the whole truth too you xpfshost! The AM Best article dated December 23rd states why they downgraded the RRG as well why it still is under negative implications and I quote:

    "NSC's rating historically had been supported by the strong capital position of INDS. However, to fund the buy-out of INDS'existing shareholders, its retained earnings were liquidated and management invoked bank debt. At the conclusion of INDS' privatization in January 2003, the strong capital cushion between INDS and NSC was removed. The reduction in capital and addition of bank debt significantly increased INDS' leverage."

    So as you can see AM Best didn't downgrade National Service Contract RRG because of nervousness of Warranty Gold. It did based on the action that Interstate took when they bought out their shareholders and invoked bank debt.

    "AM Best remains concerned that NSC's capitalization may no longer support its current rating should INDS' LRF (Loss Reserve Fund) develop advsersely. This concern is due to the fact that under its reinsurance agreement with INDS, NSC is subject to all of the potential adverse reserve development of INDS' LRF."

    Just thought you liked to know.
  • xpfshostxpfshost Member Posts: 35
    Thanks. I tried getting the article before, but the navigation on the site was confusing and it looked like I might have to pay for it (which wasn't the case). Also, I couldn't read it because you have to register first, which I eventually did. It's easier to question INDS when you have the information right in front of you. Thanks again.

    xpfshost
  • jennyk4jennyk4 Member Posts: 38
    News Release

    For Immediate Release Contact: Patrick Shaughnessy
    DATE: January 12, 2004 512-463-3208

    TDLR INJUNCTION HALTS SALE OF UNSECURED VEHICLE WARRANTIES
    Company Must Provide Financial Assurance Before Selling New Policies

    AUSTIN - The Texas Department of Licensing and Regulation (TDLR) has obtained a permanent injunction ordering a New Mexico service contract provider to stop offering or selling extended warranties for automobiles in Texas for which it lacks proof of adequate financial security.

    Judge Suzanne Covington of the 201st District Court in Austin Monday ordered First Automotive Service Corp. (FASC) of Albuquerque to stop providing, offering, advertising, selling or marketing service contracts unless it can show that the policies will be properly backed.

    FASC did not contest the injunction. It was entered as an agreed final judgment.

    Under the Texas Service Contract Regulatory Act, companies in Texas that provide service contracts are required to prove before they sell policies that they have sufficient funding to service the contracts they sell and they must maintain adequate security during the terms of those contracts. This can be done through the purchase of reimbursement insurance from a third party.

    While investigating Warranty Gold, a licensed service contract provider that declared bankruptcy November 11, 2003, TDLR discovered that policies sold by Warranty Gold since June 2003 named FASC, rather than Warranty Gold, as the company that would actually provide the warranty coverage. FASC, in turn, stated in the policies that reimbursement insurance to cover claims was provided by Dealers Assurance Corp. (DAC) of Columbus, Ohio.

    However, DAC has informed TDLR that it never agreed to provide reimbursement insurance and never provided financial backing for the policies.

    The injunction prevents FASC from offering or selling any policies that are purportedly backed by DAC. The order does not affect FASC’s ability to sell policies properly secured by other insurers.

    Created in 1909 as the Bureau of Labor Statistics, TDLR protects the public welfare and safety and promotes a fair and competitive business environment by regulating twenty diverse industries and programs, including service contract providers, boxing, air conditioning contractors and architectural barriers.
  • scammedinpascammedinpa Member Posts: 29
    RRG's are not backed up or regulated like real insurance companies. A service contract "insured" by an RRG can become worthless a split-second after you purchase it. (That was a $1200.00 lesson for me)Always read the fine print!
  • chrisgivenschrisgivens Member Posts: 14
    http://www.journalstar.com/warranty.php?story_id=116536

    Warranty Direct
    Warrantybynet
    1Source
    Warrantywarehouse

    These are just a few of the companies backed by Risk Retention Groups. Notice in the article it speaks of several RRG's that are insolvent. The author says National Warranty Insurance was insolvent back in 2001. Be careful!
  • angelloveangellove Member Posts: 14
    Warranty Direct administered and owned by Interstate National Dealers Service and backed by National Service Contract Insurance Risk Retention Group...Rated B++ with the rating still under review with negative implications!!!

    Warrantybynet administered and backed by Heritage Warranty Mutual Insurance Risk Retention Group...Rated NR-1 (Insufficient Data)!!!!

    1SourceAutoWarranty.com administered by 1Source and backed by PrimeGuard Insurance Company, Inc RRG...Rated NR-1 (Insufficient Data)!!!!

    Warrantywarehouse.com is backed by a Risk Retention Group but I am not sure who it is yet. But I will find out soon and let you all know!!

    I will continue to bring more information on these companies when I get it so that no one else will have to go through what myself and thousands of others did when NWIG collapsed....Stay tuned!!
  • xpfshostxpfshost Member Posts: 35
    Keep us posted! I was burnt by WG and decided to go with WarrantyDirect...but after the info in this thread, I've toasted that policy and am awaiting a refund. Thanks for the good info to all here.

    xpfshost
  • angelloveangellove Member Posts: 14
    I finally got who their insurer thanks to another post. The administrator is American Guardian Warranty who is backed by....you ready for this??? St. Charles Insurance Company Risk Retention Group!!! Guess, what they are rated....NR-1 (Insufficient Data)!!!

    I will keep you all informed as I find out more information. It seems my goal in life has become not to let anyone else get hurt by the Warranty Gold type companies like I did.
  • xpfshostxpfshost Member Posts: 35
    OK, so I sent in a request to cancel my contract and issue me a pro-rated refund from Warranty Direct (from contract date and contract mileage, BTW). I've only had the contract a few months and have driven about 1K miles (I don't drive much) and have paid out $550 so far. My refund was $89. Now you have to excuse me whilst I whip out my heavy artillery...to be continued...

    xpfshost
  • angelloveangellove Member Posts: 14
    You know it is interesting to see that after all that has been said in this post and others about companies that are insured by a risk retention group that Edmunds continues to have a partnership with Warranty Direct!!! A company that is backed by a Risk Retention Group and is rated B++ by AM Best with negative implications. Perhaps that needs to change?
  • mikefm58mikefm58 Member Posts: 2,882
    < Perhaps that needs to change? >

    I'll hold my breath. As long as the all-mighty dollar is involved, there will always be sham companies like WG and others backed by RRG's. I've learned a valuable lesson by my WG experience: any warranty is only as good as the company behind it.
    .
    Oh, I almost forgot, I also got burned by an extended warranty on a computer purchase in 1998. I bought a desktop from Computer City (since bought out by CompUSA). At the time I purchased their 3-yr. on-site service plan for $189. When CompUSA bought Computer City one year after my purchase, they sold the service plans to another party. My modem crapped out, so I tried calling for service and was on hold for hours and hours on several different days. I'm sure there was no one there. I realized that a 3-yr on-site service plan CANNOT be profitable for $189. One call will eat all of the $189 up, so no more on-site policies for me. I do purchase the computer manufacturer's warranty that gives me email or phone support for 3 yrs. as I know a little bit about computers.
    .
    Sorry to go off on a tangent here, but just posting my experience with warranties in general.
  • mitzijmitzij Member Posts: 613
    Yeah, my b-in-law talked me into buying an extended 'warranty' on a cd player back in '94. It was only $50, but I never needed it. The player still works great. It still bugs me that I forked out extra money for no good reason. I chalk it up to youth (20) and inexperience.
  • xpfshostxpfshost Member Posts: 35
    OK. Finally got someone to 're-calculate' my refund after faxing info back over to them last week. NOW they say that they're sending me another $233. Can't those people add??? I'm still out about $233. $99 of that was money I had to pay to a vehicle inspection company to come out to certify my car before the warranty could take place. $50 went to a processing fee because I cancelled my policy early. Unfortunately, they hit me with the fact that the policy starts at -0- miles, so even though I've only driven about 1K since the warranty started, I've actually (in their minds) used over 30% of my warranty since my car has 35K on it and the warranty goes up to 100K. Nice. At least I got something back. I'm still not happy I had to have them 're-calculate' the refund...

    xpfshost.
  • blueiedgodblueiedgod Member Posts: 2,798
    Qoute by mikefm58: "I do purchase the computer manufacturer's warranty that gives me email or phone support for 3 yrs. as I know a little bit about computers"

    What I have learnt over the years, especially with computers, that they depriciate faster than cow dung cools. The modem that failed on your computer was probably still covered by its manufacturer's warranty. Besides, even the most expensive, hardware type modem, is about $80. I am pretty sure that a store built computer had a cheapo sub-$10 winmodem.

    I am always sceptical about warranties other than manufacturer's, be it cars, computers, electronics, other merchandise. In order for those companies to stay in business and pay the executives million dollar slaries, they have to be profitable, if they fulfill every claim they will not be profitable and will not be able to afford million dollar salaries.

    Most warrnaties have exclusions that no one bothers to read. Even manufacturer's warranties exclude many things. Chances of something major, like engine or tranny failing after basic warranty are slim if the component has not failed this long. Good routine maintenance will make the car run indefinateley, some parts will require periodict replacement, but these are the parts that are not covered by the warranty.

    Generally, I would say stay away from extended warranties, put that money in the high yeld savings (ING direct or E-trade) or 3 year CD, and then see if you end up on top after 5 years.
  • mikefm58mikefm58 Member Posts: 2,882
    <The modem that failed on your computer was probably still covered by its manufacturer's warranty. Besides, even the most expensive, hardware type modem, is about $80. I am pretty sure that a store built computer had a cheapo sub-$10 winmodem.>
    .
    At the time (1999), I was ready to switch to Road Runner but I thought it was a good idea to test my warranty. Glad I did before something broke and I needed it, not sure what modems were going for back then. I never did fix/replace the modem.
    .
    My thoughts exactly on extended warranties in general. If I do consider one, it's only with the original manufacturer (that is after my WG lesson). And I read the fine print first to see if they sell it to a 3rd party.
  • angelloveangellove Member Posts: 14
    Looks like something is rotten in the state of Denmark or should I say New York!!!

    Doing my routine checking on the Risk Retention Industry and trying to save innocent individuals from making the same mistakes that I and thousands of others did with National Warranty Insurance RRG..I found some intersting information.

    Looks like National Service Contract Risk Retention Group, owned by Interstate Dealer Services the parent company of Warranty Direct, has refused to be rated by AM Best!!! Their rating changed from A- to B++ to a NR-4!!! AM Best states that an NR-4 rating means: "Assigned to companies that were assigned a Best's Rating but request that their rating not be published because the companies disagree with Best's rating conclusion".

    I wonder why they disagree with the findings? Is it really becuase the rating was about to be lowered again? Sounds fishy to me!!!

    Oh, wait a minute isn't Warranty Direct a sponsored link to Edmunds? Looks like Edmunds needs to rethink their relationship with Warranty Direct before it becomes to late!!!
  • jck1962jck1962 Member Posts: 1
    Hi, I purchased an extended warranty through National Warranty Insurance Company.I have read about other warranties such as Warranty Gold and Smart Choice. I have Triad Advantage, does anybody else have this warranty? I have tried contacting them through the phone and through their website www.thetriadadvantage.com with no luck. I paid $1200.00 for this warranty and now the car dealership that I bought my van from said that I have to foot the bill and submit my repair bill to a company that I can't even get a hold of in hopes og getting reimbursed, I would think the dealer would be responsible for the cost and that they would have to try to get reimbursed, they are the ones who sold me the warranty!thanks for any comments on this. John K.
  • driftracerdriftracer Member Posts: 2,692
    Don't know how many times I've gone over this one:

    "now the car dealership that I bought my van from said that I have to foot the bill and submit my repair bill to a company that I can't even get a hold of in hopes og getting reimbursed"

    Yes, that's correct.

    "I would think the dealer would be responsible for the cost and that they would have to try to get reimbursed, they are the ones who sold me the warranty!"

    Sorry, and not to be unsympathetic, but you're on your own.
  • mitzijmitzij Member Posts: 613
    Yeah, there's probably a line in the contract that puts responsibility on NWIC and off the dealer. On this board, I've read of a couple of dealers that are footing bills for customers, or doing a 50/50 split, but they are under no Legal obligation to do so.

    I'd say you're stuck with a very expensive piece of paper.

    Now: next time someone says 'give me $1200 and sign this contract and I'll fix whatever breaks on your car for the next four years,I promise',
    RUN.
  • rayt2rayt2 Member Posts: 1,208
    Stick with the manufactorers warranty or you'll be taken for a ride everytime ! A very costly ride. Been burned by Warranty Gold and not to happen again.

    Ray T.
  • danrosin1danrosin1 Member Posts: 1
    RRG's always have a lower cost and will cover cars that Insurance companies do not want. Web sites like aawarranty.com are trying to sell you with fear. (Have no clue)

    I have been in the business for 35 years. I can tell you that how long a warranty company has been in business, and if they pay claims mean a lot more then who the Insurance Company back them up means. Warranty Gold was rated A+ from AM Best a week before they went Bankrupt.
  • jaybird50jaybird50 Member Posts: 9
    From what I can tell, WarrantyDirect's insurance company (RRG) is not licensed to do business in California based on an RRG publication dated August,2004. National Service Contract Insurance Company RRG is domiciled in Hawaii--hmm. It is rated Best NR-4 (No rating at company request). Can anyone guess why? The "SecureCare Plus" service contract at Section 10 makes no mention of any reinsurer.

    By the way, be careful of the "rust or corrosion" and "salt" exclusion at Section D--no coverage per the salesman (sounded real flip) I talked to.

    After researching various warranty cos, my take is they are not worth the money and the only people who will buy them are ignorant consumers who haven't done their homework. A shame because many can't afford the added expense.

    Conclusion: When buying a vehicle, obtain the best manufacturer "bumper to bumper" available! American automobile manufacturers will have to improve their warranties if they want anyone to buy their vehicles. I also wonder if there is some tie in with the Better Business Bureau the way these companies tout their records--something fishy.
  • nancywnancyw Member Posts: 11
    The Auto Club is run by the same guy who drove Warranty gold into the ground and now 1 source auto warranty is no longer backed by Primeguard RRG. What is happening to this industry! Warranty Direct's RRG is unrated and looks like they are in trouble as well. Better look out for all the players out there
  • elvis66elvis66 Member Posts: 1
    Yea Im In The Same Boat ? the web site says that until the gran camen procedings are done?,that all claims may be paid for at a later date.
  • talexander1talexander1 Member Posts: 1
    Hi John....I, too, purchased an extended warranty from Triad Advantage when I purchased my Ford Windstar LX almost three years ago.....I had heard through my dealership that they went bankrupt, and that for the first year they honored the warranties of their customers and it cost them (Van Brunt Motors in Elmira, NY) $300,000.00....so now, they are splitting the repair costs with the buyer....however, because I don't have "proof" of transmission maintenance/work, they refuse to help out at all....My dad does all my fluid checks and did a flushing of my transmission only one time, which was last summer when my van was nearing 60,000 miles.....My transmission went without warning while I was 230 miles away from my home....I bought it less than three years ago for 12 grand...it's a '99 and had almost 48,000 miles on it at signing...there's just under 68,ooo miles on it now....I had the vehicle towed 230 miles to the dealership where it sits because they expect me to pay $2,788.21 for repairs or trade it in for anywhere from 400.00 to 1,500.00......I say they are screwing me ROYALLY!!!! Have you heard anything more on Triad...my dealership says it's still in litigation, and that all the monies have been frozen by the fed. gov.....that we MIGHT get reimbersed, someday...well, I'm not holding my breath waiting, but I centainly feel they owe me something for the $1,948.00 that I paid for a usless extended warranty.....
  • trisha1trisha1 Member Posts: 1
    Hi John,
    I also have a useless Triad Advantage Warranty. I plan on making life at Garvey Volkswagon in Glens Falls NY a living hell. I had trouble getting my truck fixed there with the warranty after the first month. It is not expired yet, however my letter from the dealer must have gotten lost in the mail. At least that is what I was told. I cant get anywhere with any website or phone number for Triad either. Have you found out anything else? I paid $1500 for this and after 9 months they went out of business and I never knew till last week when my truck broke down! I really learned a lesson and I hope to get the dealer to pick up some of the slack. After all they are hightly rated by Huandia and that will be who I will write my first letter of discontent to. Trisha
  • mirage154mirage154 Member Posts: 1
    Should i buy a warranty from these people or not? This is all getting very confusing, some sites give them great reviews others do not.... HELP!!
  • grummanflyrgrummanflyr Member Posts: 5
    :confuse:
    Trying to decide what warranty to buy for my new (used) 2000 Volvo C70. My past experience with SAAB convertibles made my warranty worth the cost. I had mixed experience with Warrantybynet plans. On one of my SAAB's, the warranty was from American Guardian and they became real pains in the neck in the last two years (always paid much less than the dealer repair bill). However, I have another plan sold by Warrantybynet on my wife's SAAB from Vemeco (Heritage). So far with two significant claims (power steering pump, direct ignition cassette, towing reimbursement), they paid VERY quickly and painlessly.

    That being said, I can't seem to get a Vemeco exclusionary policy on my Volvo due to the age.

    So...

    I'm considering 1Source, Warranty Direct and Mercury. Mercury is an actual insurance company. I don't know enough about any of them.

    If anyone can give me some advice, please post and email me at [email protected]

    Thank you!
  • grummanflyrgrummanflyr Member Posts: 5
    Anyone have personal experience with Heritage, 1 Source or Mercury?
  • fblackfblack Member Posts: 26
    Yes - 1Source - as of Dec. 2 (according the the recording reached on the Claims phone #) all claims are being referred to the Hawaii Insurance Commissioner's office, who reports that they (and PrimeGuard) are 'under review' and not able to process any claims. No info about status or projected completion of the 'review'. Calls to the sales # get the 'You have called outside of business hours', but it was mid-day on a Tuesday... Previous claim was paid without hassle (about 3 months ago)...
  • 705705 Member Posts: 1
    Apparently 1SourceAutoWarranty.com has joined the list of casualties. Their Claims Support recording says that of 12/2/2005 all calls are being forwarded to the state of Hawaii insurance. When contacting the state of Hawaii emergency number you are informed that they are no longer accepting claims at this time. Apparently some kind of review process is going on.

    Does anyone have anymore information on what is going on with 1SourceAutoWarranty.com?
  • 1spillman1spillman Member Posts: 10
    I took this info directly from 1sourceautowarranty.com's BBB report that is on their website.

    CUSTOMER EXPERIENCE

    On December 2, 2005 the BBB learned that the Hawaii Division of Insurance had suspended operations of this company. The BBB has been unable to confirm with government or law enforcement agencies in Hawaii or Colorado to respond to questions. The BBB urges consumers to be cautious in purchasing any products from this company until more details are made available.

    Here is the link for the entire BBB report.

    http://www.data.bbb.org/scripts/cgiip.exe/WService=denver/denver/showrpt.html?la- nguage=english&zid=RONjJmLoM

    Anyone that has purchased from 1 Source recently needs to cancel with their credit card company. If you have a payment plan also cancel with your credit card company. You may be able to salvage some of your money, if you have claims, well it look like another Warranty Gold fiasco.
  • jessealanjessealan Member Posts: 11
    I really want to go with warranty direct but need more info to make sure they are a good company. Any reason to go with them? Suposedly they are packed by an insurer and reinsurer.
  • audia8qaudia8q Member Posts: 3,138
    Being backed dosnt mean anything...ask the millions of people who have been burned by an aftermarket warranty company that was "backed".

    Unless there is no choice don't even consider a warranty that isnt backed by a major car company. You save a few dollars with the aftermarket warranty but in the end you won't save anything and there is a good chance you will end up with nothing but alot of promises.
  • mmc996mmc996 Member Posts: 2
    I am a current holder of a 1Source E.W. about half way through its life. Over the 3 years I've had it they have been very responsive until that brick wall of a phone message I ran into last week when calling to make a claim. On a hope and a prayer, that phrase 'under review' portends that they/we will recover from whatever hole they/we are in. The number on the recording for the Hawaii Insurance Division is incorrect - the HID Hotline specifically for 1Source is 808.586.7512 but not much new there at this time. Thankfully this message board provides someplace to vent or find some nuggets of info. Writing in your claim or complaint to the address given at the BBB site (see 1 spellman) seems to be the only concrete action that can be taken at this time. If anyone has ar gathers any new info please post. thanks.
  • mmc996mmc996 Member Posts: 2
    Aloha.. On my previous and very first post, a few hours ago, I incorrectly listed the Hawaii Insurance Division hotline for the PrimeGuard/1Source case-in-review. The correct number is: 808-586-7412. My apologies.
  • lampadephorialampadephoria Member Posts: 2
    Hi All,
    I plan to purchase extended warranty. With so many internet offerings, I don't know which one to pick. Does anyone have experience with AAAutoWarranty.com, who sells warranties backed by Warranty America, LLC/Capital Assurance Risk Retention Group?
    Some folks suggested me to go with AAA's warranty service from www.corpmsc.com.
    They have similar plans. But I don't know which one can really handle my repairs.
    Thanks for your feedback.
  • steve02sltsteve02slt Member Posts: 1
    Why would you want to insure your vehicle with a company thats only been in business for 4 years, and is backed by a risk retention group?? :confuse:
  • joel0622joel0622 Member Posts: 3,299
    Buy the Manufactures Service plan, and you won't have any of thw whore stories you read on the first few pages
  • mitzijmitzij Member Posts: 613
    Or horror stories! ;)
  • k3nk3n Member Posts: 1
    ...avoid all RRG's at all costs. They might be cheaper, they might even offer some unbeatable programs, but make sure ANY warranty you purchase is from an actual Insurance Company.

    There are a few companies out there, like www.AutoWarrantyBroker.com that offer extended warranties from actual A-rated Insurance companies, and nothing to do with RRG's.
  • lampadephorialampadephoria Member Posts: 2
    Thank you for your advice.
    I am in the end strong enough not falling into the RRG trap. I selected AAA member care. The insurance comp. behind the program is not RRG. They are certainly not cheap, but I feel confident that my claims in the future will be granted. If anyone needs more info. please let me know. Or you can check out www.corpmsc.com
  • lsg1lsg1 Member Posts: 42
    I am thinking of going with this company(Auto Warranty Broker). They are DIRECTLY INSURED byan insurance company - American Mercury Insurance Group.
    Anyone have any info on this company? They offer 2 lines of coverage:
    American Mercury Silver
    Extra Care - Freedom Coverage Best Value
    and
    American Mercury Platinum
    Bumper to Bumper True Exclusionary Coverage

    is it worth the extra $200 to get the bumper to bumper?
    Thanks
  • mitzijmitzij Member Posts: 613
    Sure, it's 'bumper to bumper'! Except...

    From Mercury's sample contract:
    SECTION III. WHAT IS NOT COVERED

    NOT ALL COMPONENTS OF YOUR VEHICLE ARE COVERED BY THIS CONTRACT. ONLY THE COMPONENTS LISTED IN &#147;SECTION II WHAT THIS CONTRACT COVERS&#148; ARE COVERED BY THIS CONTRACT. THE COMPONENTS AND CONDITIONS LISTED BELOW ARE SPECIFICALLY NOT COVERED BY THE TERMS OF THIS CONTRACT.

    1. THIS CONTRACT DOES NOT COVER ANY REPAIR OR REPLACEMENT OF COMPONENTS THAT ARE RECOMMENDED OR REQUIRED SOLELY BY THE ENACTMENT OF ANY LOCAL, STATE, OR FEDERAL LAW, RULE OR REGULATION.

    2. THE FOLLOWING COMPONENTS ARE SPECIFICALLY EXCLUDED: AUDIO SPEAKERS; BATTERIES; BODY PANELS; BODY SEALS; BUMPERS; CABLES; CARPETING; CHASSIS; CLAMPS; FASTENERS ( I.E. , NUTS, BOLTS, CLIPS, ETC. UNLESS REQUIRED IN CONJUNCTION WITH A COVERED REPAIR); CONVERTIBLE TOPS AND THEIR MECHANISMS; EXHAUST AND EMISSION SYSTEM COMPONENTS; GASOLINE FUEL INJECTORS THAT DO NOT HAVE AN ELECTRICAL FAILURE; GLASS; INSULATION; HOSES; LINES AND FITTINGS (EXCEPT BRAKE LINES AND FITTINGS); MIRRORS; MANUAL CLUTCH COMPONENTS; PAINT; PASSENGER RESTRAINT SYSTEM; SEATS; SECONDARY IGNITION COMPONENTS; SOFT TRIM/MOLDINGS OR APPEARANCE ITEMS; SUSPENSION SPRINGS; TELEPHONES; TORSION BARS; UPHOLSTERY; WEATHER STRIPPING; WHEEL LUG NUTS/STUDS; WHEELS; WHEEL COVERS; INTERNET COMPUTER; NAVIGATION SYSTEM; VIDEO COMPONENTS; HEADSUP DISPLAY, AND NIGHT VISION SYSTEMS.

    3. THIS CONTRACT SPECIFICALLY EXCLUDES: NORMAL MAINTENANCE AND SERVICE ITEMS; ALIGNMENTS; ADJUSTMENTS; CALIBRATIONS; CLEANING; NON-PUBLISHED DIAGNOSTIC LABOR; FILTERS/FLUIDS/LUBRICANTS/REFRIGERANTS (EXCEPT IN CONJUNCTION WITH A COVERED REPAIR); A/C ACCUMULATOR/DRIER (EXCEPT IN CONJUNCTION WITH COMPRESSOR REPLACEMENT); FUSES; LIGHTS/BULBS/LENSES; SHOP SUPPLIES; ENVIRONMENTAL DISPOSAL CHARGES; WEAR ITEMS; ACCESSORY DRIVE BELTS; BRAKE PADS AND SHOES; BRAKE DRUMS AND ROTORS; SHOCK ABSORBERS; STRUTS; TIMING BELTS THAT ARE WORN OR STRETCHED, AND WIPER BLADES.

    4. THIS CONTRACT DOES NOT COVER ANY COMPONENT NOT SUPPLIED AS ORIGINAL EQUIPMENT BY THE VEHICLE MANUFACTURER.

    5. IN NO EVENT WILL WE COVER ANY MECHANICAL BREAKDOWN OR DAMAGE:

    A. CAUSED BY RUST, CORROSION, OXIDATION, CONTAMINATION, SLUDGE, OR RESTRICTED OIL PASSAGES;

    B. CAUSED BY IMPROPER AMOUNTS OR IMPROPER TYPES OF LUBRICANTS, COOLANTS, REFRIGERANTS OR FILTERS;

    C. IF PRIOR AUTHORIZATION IS NOT GIVEN BY US PRIOR TO REPAIRS BEING PERFORMED (SEE CONDITIONS OF COVERAGE);

    D. RESULTING FROM MISUSE OF, ALTERATION OF, TAMPERING WITH, DISCONNECTION OF, MISCHIEF OR VANDALISM TO, THE VEHICLE OR ANY OF ITS COMPONENTS, OR DAMAGES RESULTING FROM COLLISION, ACCIDENTS, WATER, FIRE, FREEZING, ACTS OF GOD, OR THEFT;

    E. IF MAINTENANCE RECORDS HAVE BEEN REQUESTED BY US BUT CANNOT BE PRODUCED OR VERIFIED;

    F. THAT EXISTS PRIOR TO THE EFFECTIVE DATE OF THIS CONTRACT, THAT OCCURS OR IS REPORTED AFTER THE EXPIRATION OF THIS CONTRACT, OR THAT OCCURS DURING THE VEHICLE MANUFACTURER&#146;S WARRANTY PERIOD, OR A REPAIRER&#146;S GUARANTEE, OR A PARTS WARRANTY;

    G. IF YOUR VEHICLE&#146;S ODOMETER IS INOPERATIVE, HAS EVER BEEN ALTERED OR TAMPERED WITH, OR THE ACTUAL ACCUMULATED MILEAGE CANNOT BE DETERMINED.

    H. DUE TO CONTINUED OPERATION OF YOUR VEHICLE, OR FAILURE TO USE REASONABLE MEANS TO PROTECT YOUR VEHICLE FROM FURTHER DAMAGE, AFTER A FAILURE OCCURS (SEE CONDITIONS OF COVERAGE);

    I. CAUSED BY ENGINE OVERHEATING DUE TO FAILURE OF A NONCOVERED COMPONENT.

    6. IN NO EVENT WILL WE COVER ANY OF THE FOLLOWING:

    A. ANY RESULTING OR CONSEQUENTIAL DAMAGE TO A NON-COVERED COMPONENT, OR CAUSED BY, A NON-COVERED COMPONENT;

    B. ANY CHARGES, COSTS, EXPENSE, INCONVENIENCE, LOSS OF TIME, LOSS OF INCOME OR ANY OTHER CONSEQUENTIAL LOSSES ARISING FROM A MECHANICAL BREAKDOWN NOT SPECIFICALLY COVERED BY THIS CONTRACT, OR ANY OTHER EXPENSES YOU INCUR NOT SPECIFICALLY COVERED BY THIS CONTRACT;

    C. IF YOUR VEHICLE IS USED FOR, EQUIPPED FOR OR IDENTIFIED AS A:SNOW PLOW, RACING, EMERGENCY, DELIVERY VEHICLE, OR COMMERCIAL VEHICLE (LIMITED COMMERCIAL USE IS AVAILABLE ONLY IF THE PROPER SURCHARGE HAS BEEN PAID);

    D. GRINDING OF VALVES OR OTHER COMPONENT REPAIRS TO IMPROVE COMPRESSION OR CORRECT OIL CONSUMPTION WHEN A DEFINED MECHANICAL BREAKDOWN HAS NOT OCCURRED;

    E. ANY MECHANICAL BREAKDOWN IF ANY ALTERATIONS OR MODIFICATIONS HAVE BEEN MADE TO YOUR VEHICLE, OR YOU ARE USING OR HAVE USED YOUR VEHICLE IN A MANNER NOT RECOMMENDED BY THE MANUFACTURER, INCLUDING BUT NOT LIMITED TO: THE FAILURE OF ANY CUSTOM OR ADD-ON PART, ALL FRAME OR SUSPENSION MODIFICATIONS, LIFT KITS, OVERSIZED TIRES, HD TRAILER HITCHES, EMISSIONS AND/OR EXHAUST SYSTEMS MODIFICATIONS, ENGINE MODIFICATIONS, ENGINE OVER-REVVING, OR IMPROPER SHIFTING. IN THE SITUATIONS COVERED BY 5.E., 5.G., 6.C. AND 6.E ABOVE, OR IN THE EVENT YOUR VEHICLE IS REPOSSESSED OR HAS EVER BEEN DECLARED A TOTAL LOSS, SALVAGE OR REBUILT, WE MAY CANCEL THIS CONTRACT. ALSO, SEE THE PROVISIONS CONTAINED IN &#147;SECTION V. GENERAL PROVISIONS, SUBSECTION I. CANCELLATION.&#148;

    And, in case you didn't notice. American Mercury Warranty is 'insured' by American Mercury Insurance Group. Maybe they're related...
  • uvebeenscreweduvebeenscrewed Member Posts: 5
    Avoid all of these like the plague. See my other post regarding API (Automotive Professionals Inc), IWS (Intercontinental Warranty Services) and Marathon Financial (their RRG).

    API has stiffed thousands of customers on GPR claims as well as service claims.
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