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WarrantyWarehouse.com - BE EXTREMELY CAREFUL
floridamiss200
Member Posts: 2
in General
I will try to keep this as brief as possible, but I simply must share this experience I recently had with Warrantywarehouse.com. I am a resident of the State of Florida. I requested a quote on my vehicle from their website but was unable to get it on line. Shortly after I requested the quote I received a telephone call from a salesperson from Warrantywarehouse.com. After he pitched and dissed all of their competitors I was shocked beccause he asked me if "I HAD A MAILING ADDRESS OUTSIDE OF THE STATE OF FLORIDA" so that my application can be completed. That made no sense to me and needless to say I became very suspicious from this point on, but allowed him to continue. He was proud to inform me that their administrator is "American Guardian Warranties" located in Illinois, and that Warrantywarehouse has been in business for many years, and is a public company. He also told me that Warrantywarehouse is one of the very few warranty companies approved by AM BEST. He pointed out how they can proudly display the AM BEST logo on their site. THAT IS HIS STORY, AND NOW HERE IS WHAT I FOUND OUT WITH A LITTLE RESEARCH OF PUBLIC RECORDS AND A FEW TELEPHONE CALLS.
1) I called the Florida Insurance Commission ad was told that neither Warrantywarehouse.com nor their administrator "American Guardian Warranties" are licensed to do business in our State. (That is probably why the salesman asked me for an out of state address)
2) Their Administrator is backed by a company called Saint Charles which is a Risk Retention Insurance Company and IS NOT RATED WITH AM BEST.
3) Warrantywarehouse.com is in business for only one year, and is NOT a public company.
4) I contacted AM BEST and was told that neither Warrantywarehouse nor any other warranty company is authorized to use the AM BEST logo. I was told that AM BEST only rates Insurance Companies---NOT WARRANTY COMPANIES. With all of the lies and high pressure sales tactics I have experienced and have listed above it seems to me that this "Johnny come lately" company in the on- line warranty field seems pretty desperate for business, and will say and do anything for a sale. With all of the extensive research and time I have invested on many of the on line warranty companies, Warrantywarehouse.com are the most blatant liars I have come accross. If you are not a believer check out everything I have stated. MOST OF ALL--THERE ARE SOME DEPENDABLE ON LINE WARRANTY COMPANIES OUT THERE. DO YOUR OWN RESEARCH--IT DOES PAY OFF.
1) I called the Florida Insurance Commission ad was told that neither Warrantywarehouse.com nor their administrator "American Guardian Warranties" are licensed to do business in our State. (That is probably why the salesman asked me for an out of state address)
2) Their Administrator is backed by a company called Saint Charles which is a Risk Retention Insurance Company and IS NOT RATED WITH AM BEST.
3) Warrantywarehouse.com is in business for only one year, and is NOT a public company.
4) I contacted AM BEST and was told that neither Warrantywarehouse nor any other warranty company is authorized to use the AM BEST logo. I was told that AM BEST only rates Insurance Companies---NOT WARRANTY COMPANIES. With all of the lies and high pressure sales tactics I have experienced and have listed above it seems to me that this "Johnny come lately" company in the on- line warranty field seems pretty desperate for business, and will say and do anything for a sale. With all of the extensive research and time I have invested on many of the on line warranty companies, Warrantywarehouse.com are the most blatant liars I have come accross. If you are not a believer check out everything I have stated. MOST OF ALL--THERE ARE SOME DEPENDABLE ON LINE WARRANTY COMPANIES OUT THERE. DO YOUR OWN RESEARCH--IT DOES PAY OFF.
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I have not seen the Am Best logo on the website of WarrantyWarehouse. When I enrolled they sent an inspector to make sure the vehcile was ok. I passed. The policy began right away. I had a repair for a powerwindow that stopped working the first month of my policy. $189.56 was the repair bill. They covered it.
I admit I favor these guys because I had a good experience with them. They do have my real address on file, and I was satisfied with the research I did. And most important my claim got paid. I have read posts on Edmunds for a long time. If these guys suck in the future I will call them out on it, but only customers should put messages on Edmunds, not rival companies.
Due your research, you are the one who lost out!!
This does bring me to an anecdote, however.
I work in the service dept of a small dealership. One of my customers came in for repair. He was gushing about the service contract he'd bought with his new truck. 'That's the best money I ever spent!' That would be great, but, his service contract had not kicked in yet. All of the repairs done to date were under GM warranty. Even after I told him this, he still stated that service contract was the best money he ever spent.
Worrying about the compnay going Belly-Up? Major compnaies all seem to fall, Enron, Ect...What it comes down to is peace of mind!! I felt good about the compnay even after my experience with Gold!!
I chose them based on their partnerships, coverage, past history, and the fact they have 24/7 Customer Service....It wqas better than getting 'Robbed' by my dealer...
But it is a free country, buy a service contract if you really want to, but you'll see few glowing endorsements on this forum.
You might check in the archive for warranty gold customers who researched diligently and purchased plans. They were happy as larks until June of last year. WG had a stellar record, was in business for years, then, as if by magic, it all went away. Now thousands of people are left holding very expensive pieces of paper instead of their 'peace of mind'
kcram
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1. The extended warranty company remains solvent.
2. The average customer gets back more in repairs than they spent on the warranty.
For a manufacturer-backed warranty, however, the equation is different. Maybe it's worth $450 a policy to GM to keep their customers happy, and coming back to GM. If an independent warranty company loses $450 a policy, it goes out of business pretty darn quick.
1. The extended warranty company remains solvent.
2. The average customer gets back more in repairs than they spent on the warranty.
For a manufacturer-backed warranty, however, the equation is different. Maybe it's worth $450 a policy to GM to keep their customers happy, and coming back to GM. If an independent warranty company loses $450 a policy, it goes out of business pretty darn quick.
You may have gotten your claim paid now...but so did all of us Warranty Gold customers until National Warranty Insurance Group R.R.G. collapsed. So I wish you good luck!!
This is my/yourmoney we're gamling with here - not some unnamed client.
Over the years these boards [not just Edmunds] have been full of shills. Everyone has an agenda!
Not saying that is the case, but for every negative [concern] from the moderator and myself, a positive reenforcement balances us out.
That said I had a great experience with TRW [before they went out of business] my $1,000 returned over $8,000 in 2 years...[back in 96-97]
Most don't realize that these service contracts worked in the past because of inflation and the high returns on your invested premiums .In todays low interest rate enviroment the old $1,000-$1,500 premiums won't work.
An acurarial accurate number would mean these policies should cost $2500 for 100k term.
Saw one policy for a Range Rover that was $4300 for 100,000 miles, they probably will stay in business and pay off.
That should speak volumes!
4300.00 probably isn't enough for such a troublesome vehicle.
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Page 4--"Replacement parts will be of like kind and quality and may include new, remanufactured, rebuilt or used based on the Administrator's option;
Page 7--don't fall for the "Optional Additional Benefits";
Page 8--receiving full benefits under the Agreement is subject to "...keeping receipts for services from the date of vehicle purchase." How many people can satisfy this requirement?
Page 8--"LIMIT OF LIABILITY-The total benefits paid or payable under this Agreement shall not exceed the actual cash value (ACV) of your vehicle or $10,000.00, whichever is less." Wow, haven't seen this limitation in some of the other warranties out there--have you? You better be able to prove that you have followed the manufacturer's recommended maintenance, too.
Page 10--"Pre-existing conditions that have manifested through the gradual reduction in operating performance and whose condition predates the activation of the service agreement." If this clause doesn't apply in certain situations, then they should be spelled out. Can't rely on salespeople to spell this out orally--won't mean anything when the clause is enforced by American Guardian--when your engine or transmission goes (after manufacturer warranty expires).
Page 12--unable to find proof tying St. Charles Insurance Company, R.R.G. to Hannover Re should St. Charles go under like those backing Warranty Gold. Should have a declarations page available on web-site.
Many of the above issues do not appear in the equivalent agreement used by Warranty Direct; however, I wouldn't vouch for any such company at this point and I haven't addressed the quality of service or how these companies are insured. All of them need to create a code of conduct and standard language for their contracts, but I suspect profits are higher doing business the way they do now. Tread carefully and good luck to all.
"Page 4--"Replacement parts will be of like kind and quality and may include new, remanufactured, rebuilt or used based on the Administrator's option"
That means the administrator or adjuster can find a used (salvage yard) engine or transmission (or rear differential) and have it installed in your vehicle. By contract, they have the right.
Seriously ugly - and I've had techs who had to clean off mud and rust from an engine that sat in a salvage yard before they installed it. Problem is, most dealers and shops have 12/12 warranties on their work, so it ropes them into providing a warranty on a used motor out of a wrecked car or truck.
That's another reason many dealerships won't deal with private service contracts.
The more I read, the more likely I am not to buy such a contract; instead, I'll firmly negociate with the manufacturer and all the TSB's evidencing defects that we shouldn't have to pay for.
I don't like being the bad guy who gets to tell you we're putting a used motor in your car - not cool.
One thing you HAVE to understand - just because a manaufacturer sends out a TSB on a problem does not make them liable for the cost of repair in any fashion. There's no negotiating to it.
2. I can buy a car, tack the cost of the service contract onto my auto loan and, in effect, make payments on the service contract.
3. Warranty Gold had a RRG backing it. The RRG went under, supposedly taking WG with it. RRGs are not the most stable organizations.
4. You're right, Jaybird should check out manufacturer backed service contracts. He will find they are NOT the same as other providers. Manufacturer backed contracts pay for OEM parts, and are much more concise about what is covered and what is not. I have yet to see a GMPP claim denied due to 'normal wear and tear' whereas that is the favorite excuse of certain other companies I have dealt with.
5. Please break up your writing with paragraphs, it's easier to read. Also, please make an attempt at decent grammar and spelling. Again, easier to read.
EDIT: Oh, and one more thing. It's illegal to purchase a service contract on an item with a known problem, then submit for repairs. That's called insurance fraud.
Second, Please do not use all capital letters. it is very hard to read.
Third, Please use a period at the end of your sentences. Rather annoying trying to figure out where your thoughts end and where another begins.
Four, why did you even buy an extended warranty when the Kia has 5 yr/60k bumper to bumper and 100k mile powertrain warranty.
Five, did you talk to WarrantyWarehouse before you rented the car to see exactly what they would cover or did you just assume they would cover the entire rental?