Great American Insurance Company

[cvhs18472]

Has any one had any dealings with the Great American Insurance Co as a warantee service? Quoted a price of $3500 for a 73 month or till my 98 Boxster Tip reaches 100,000 miles. It currently has 38K. No interest payments for 2 years. Any thoughts? Thanks Ed

[fasterjames]

I don't know anything about them (there are thousands-some good some bad) but have dealt with auto warranty companies indirectly for several years. I have never heard of one with no interest payments for 2 years or any time for that matter. I would be extremely cautious about a company that needs a gimmick in order to sell its product.

Or are you just using them to finance the warranty or are they actually offering the warranty through themselves? They appear to be in the finance business but maybe they do product warranties too. How did you find out about them? From a Dealer or did an independant Agent contact you?

Most warranty companies are held off shore and are not subject to US tax laws. Sadly, many of them are simply savings accounts for dealers/corporations designed never to succeed as a warranty company but as a retirement account. These few bad eggs will collect millions of dollars then claim bankruptcy on the tiny portion of what is kept in the US. Now the business is closed but they still have 10s of millions gaining interest in the Cayman Islands.

Not trying to scare you or anyone else reading this but it does happen. It's a fairly common occurance in the auto business.

Again, they are probably just fine and on the up and up but with any warranty company I would find out:

1. who the company is that you must contact in the event of a mechanical failure/how long in warranty business.

2. What exactly is covered and what exactly is not

3. what their MOP (method of payment) is to the repair facility

4. If they are doing the financing only, what is the rate? (I'm thinking very high if offering no payments for 2 yrs)

5. Check to see if they place a lien on your vehicle by accepting this loan. If they do, RUN! as fast as you can!

6. Verify all of this in print and on your agreement, not what the Agent tells you.

Best of luck to you.

[cvhs18472]

I don't know anything about them (there are thousands-some good some bad) but have dealt with auto warranty companies indirectly for several years. I have never heard of one with no interest payments for 2 years or any time for that matter. I would be extremely cautious about a company that needs a gimmick in order to sell its product.

Or are you just using them to finance the warranty or are they actually offering the warranty through themselves? They appear to be in the finance business but maybe they do product warranties too. How did you find out about them? From a Dealer or did an independant Agent contact you?

Most warranty companies are held off shore and are not subject to US tax laws. Sadly, many of them are simply savings accounts for dealers/corporations designed never to succeed as a warranty company but as a retirement account. These few bad eggs will collect millions of dollars then claim bankruptcy on the tiny portion of what is kept in the US. Now the business is closed but they still have 10s of millions gaining interest in the Cayman Islands.

Not trying to scare you or anyone else reading this but it does happen. It's a fairly common occurance in the auto business.

Again, they are probably just fine and on the up and up but with any warranty company I would find out:

1. who the company is that you must contact in the event of a mechanical failure/how long in warranty business.

2. What exactly is covered and what exactly is not

3. what their MOP (method of payment) is to the repair facility

4. If they are doing the financing only, what is the rate? (I'm thinking very high if offering no payments for 2 yrs)

5. Check to see if they place a lien on your vehicle by accepting this loan. If they do, RUN! as fast as you can!

6. Verify all of this in print and on your agreement, not what the Agent tells you.

Best of luck to you.

I am sorry about the miscommunication on the financing portion . I will make 24 payments of app 135 and there would be no financing charge. It is supposedly backed by Great American Insurance Co. which has been in business for over 150 years. Do you know if Porsche offers a plan for an older car? Ed

[jmj996]

I used Warranty Direct and they were a very good company. The warranty was just under $2k but it paid for itself (motor mount, coolant tank reservoir, both window regulators, RMS). The last I checked, they will not provide a warranty for any Porsche > 5yrs old, but having been through that experience I have a few suggestions for you:

1) Contact the service managers at various Porsche dealers and see if they have ever worked with this warranty company. If they have, also ask them if the warranty covered everything after the deductible. My warranty company covered all parts costs (with a 10% discount off list that they negotiated with the dealer), but they didn't cover the full hourly labor rate and the dealer charged me the difference.

2) As suggested above, find out what is not covered. It is normal for brakes, clutch, tires, etc. to be excluded, but make sure no big mechanical or electrical items are excluded.

If you can still get a warranty on a 1998 Boxster and the company checks out and the financing piece of it doesn't raise any red flags, I would recommend you go for it. The "no interest" statement is definitely a gimmick, but what it really means is that the base cost of the warranty has already been bumped up to cover the equivalent interest over two years of payments.

[nick49]

Geico has a mechanical breakdown policy which in effect is an extended warrenty. The terms are that it is added to your Geico insurance policy and has to be added before the Manufacturers warrenty expires. We still have this on my wifes '99 Boxster and it costs only $73.10 every 6 months and has a $250 deductable. We haven't had to make a claim yet but it's nice for peace of mind.

[fasterjames]

I don't know about Porsche warranties for older vehicles. I think you might get one if you purchased your Boxster at a dealer but not sure. That being said, where did you hear about this company? From a dealer? A card in the mail? Credit card? Did you search them out? If offered by the dealer I would think you are fine. If from a card in the mail, I'd give it a 50-50 shot. Through a credit card I would say no way. If you searched and found them, probably not too bad.

And I agree with John Jones, your price will be bumped up (or coverage down) to absorb the no payments for 2 years.

Let us know how it ends...