3rd Party Extended Warranty?

[ultramens]

Hi all. I have a 1999 996 with 51500 miles on it and I live in Orlando, FL. From the many threads on this forum, I am really scared that I will get an engine failure. I dont want to have to spend over 10K to fix it. So I have been looking into getting an extended warranty. I have been searching the web and there are lots of companies out there. Any one have experince? Did anyone have an extended warranty and used it to pay for their blown engine? Any advise would be great. Thanks.

[Ranger]

Hi all. I have a 1999 996 with 51500 miles on it and I live in Orlando, FL. From the many threads on this forum, I am really scared that I will get an engine failure. I dont want to have to spend over 10K to fix it. So I have been looking into getting an extended warranty. I have been searching the web and there are lots of companies out there. Any one have experince? Did anyone have an extended warranty and used it to pay for their blown engine? Any advise would be great. Thanks.

Do a search on this topic at RennList. Lots of info there. Much of it from me. My new engine has ~700mi on it, thanks for asking <g>.

[ultramens]

Thanks for the heads up, I just signed for RennList. I think i am going to go with AA Auto Warranty. 4years/48,000 miles for $1,750.00. Any one had dealings with them? The policy will be held with Royal Adminstration Services. Thanks to all!

[deschodt]

Thanks for the heads up, I just signed for RennList. I think i am going to go with AA Auto Warranty. 4years/48,000 miles for $1,750.00. Any one had dealings with them? The policy will be held with Royal Adminstration Services. Thanks to all!

In my opinion, talk to your dealer's service guys first. If you engine blows up, you are going to have to deal with them (if the new motor is not dealer installed only the parts are covered by the new warranty) and also deal with the warranty company, and you may have issues in between the 2 as to what's covered, payments etc. I went ot my dealer in Tampa (Reeves), they sell a policy via 1/3 party, zero deductible, and told me that I would not have to worry about a thing, it's now between them and their recommended warranty company. More money than yours, but 100K miles, zero decuctible and peace of mind.

[viper501]

I've posted on this issue several times already but I will do it again because I don't want to see you get taken.

I have no idea what the history of that company is. However, as an attorney I defend several dealerships and a major manufacturers finance arm. Invariably, there seems to be a lawsuit over the 3d party warranty company not paying up when they, arguably, should. I'm fairly sympathetic to their plight but you have to go into one of those things with your eyes wide open. The simple fact is that there is fairly little gaurantee that the company will exist at the time you make a claim. The next issue is whether they will actually pay the claim or try to deny it until you are forced to sue them. Then, assuming you get a judgment, you have to collect on that judgment. Very very difficult in many cases because you don't necessarily know who you are dealing with.

Some states are doing a better job of regulating these companies, and you pay for it. The reputable companies that are willing to play ball can charge more because they don't have the cut-rate competition. Of course, there is still no gaurantee they will pay the claim.

Furthermore, some of the shops won't accept the warranty companies assurance that they will pay on the repair. Too many have been screwed over by the fly by night guys and won't deal with companies they don't know.

Finally, remember that if you go through a dealer to get the warranty you are paying about twice what it is costing the dealer to sell you the policy. Generally speaking there is a 100% markup on those 3d party warranties and when you have a problem the dealer will wash their hands and say it is between you and that company.

Bottom line is that I would be very reluctant to enter into a third party warranty unless I had specific information on the company and their reinsurer and the state specific regulations that govern their conduct.

Having said that, my engine went at 126k miles. I have done some post-mortem examination of it and it is clear that the number 2 cylinder has no compression. Having looked at it after we pulled it, I believe that she broke an exhaust valve spring. To fix that issue on an engine with that many miles just didn't make too much sense to me. For 7900 (roughly) I bought a new engine and for a little more got an independent shop to help with the install (which Porsche makes *very* easy, BTW). If you consider the headaches you may encounter with a 3d party warranty for that price I might just save my pennies and wait and see, esp. since your coverage goes away at 98k miles.

Just my 3 cents.

[Ranger]

Ultramens, I'm the world's authority on getting Royal Administration to pay for a blown motor. Ignore the posts at Rennlist at your peril. Do not buy that warranty. It's too inexpensive. It's probably not their "Exclusive" offering.

Note that Royal Administration operates warranties under a number of names. Folks think that they're dealing with different warranty companies, but they're not. At least not in any way that matters much.

[Izzy]

So perhaps the term "royally screwed" originated there? Anyway, I would not recommend warranties-4-wheels if you encounter them. Even if you do a search with the "BBB OnLine", which gives you an idea of complaints and issues, there is no guarantee they will honor what they sold. I went for the certified Porsche warranty, for my second 911. Peace of mind for 3 years.

[ultramens]

Thanks for all that replied. So i called Porsche and the service guys tells me I have nothing to worry about in terms of engine failure???? I told him there are numerous reports that the engine is unreliable. I dont know what to do anymore.

I also asked him if he has dealings with Royal Admin. and he said no. A extended warranty provided he has dealt with and recommended was Warrantech. I will complete a search and see how much they want.

As for what is cover from the Royal Admin. warranty, I really dont know if it will cover a blown engine. (I am no mechanic). Below is whats covered from the engine.

ENGINE: Crankshaft and bearings, oil pump, internal timing gears or chain, camshaft, camshaft bearings, valve lifters, rocker arm assemblies and push rods, piston and rings, wrist pins, cylinders, connecting rods, distributor drive gear, all internal components of engine block and cylinder heads, if damage is caused by mechanical failure of an internally lubricated part. All gaskets and external seals are not covered. Gaskets and external seals will be covered if their replacement is necessary to complete an authorized repair. Cracked engine block, cracked cylinder heads, and cracked cylinders are not covered. Broken crankshaft is not covered unless the break is caused by either bearings or piston failure. Valve guides are covered only when guide sleeves have not slipped below original position.

Can anyone tell me if the "blown engine" would be covered?

Thanks in advance.

[viper501]

There are so many terms in there that need to be defined with some clarity that you'll be litigating that issue. I can say that it does not appear that broken valve springs are covered, depending on how they define internally lubricated part. My neighbor is currently suing a 3d party warranty company over the transmission in his M5 going out. Despite the fact that the failed part is covered in fluid, they didn't consider it an internally lubricated part.

Also, the RMS and IMS seals are definitely not covered based on that language.

I'd say you're in for a fight with them and that the burden of proof has been pushed back on you to prove the cause of the failure. I'm also curious whether they would cover a bearing failure caused by coolant intermix.

[ultramens]

Viper, Thanks for the advise. I would not have known any of that. Considering your comments, i dont think i will be purchasing the extend warranty. Thanks for saving me some money!!!!!

[Ranger]

Viper, Thanks for the advise. I would not have known any of that. Considering your comments, i don't think i will be purchasing the extend warranty. Thanks for saving me some money!!!!!

Ultramens, this is my last attempt to help you. 6 months ago I was in exactly your position. Your car, your year, your concern, negotiations with your warranty company. 2 months ago I blew my motor. I now have a new motor. You don't seem to want to go to Rennlist and read the details about the negotiations with Royal Administration. You don't even want to ask questions.

The reason I wrote an extensive write-up over at Rennlist was solely to help folks in your position. Royal Admin just paid ~$10.8k towards my motor. After-market warranties can work, but you have to go in carefully.

[ultramens]

Ranger, I have gone to Rennlist and read your posts on this issue. I just wanted to see if what they quoted me covered under the engine would protect me from a blown engine. From the comments of viper, he does not think so. Since coverages are different in each state, I wanted to know for sure if a 3rd party warranty covered the engine here in FL. I would hate to buy the warranty and then have to hire a lawer to fight for a new engine. It would defeat the purpose of the warranty.

Thanks for the help!

[Ranger]

The reason Viper made those comments is that you quoted him a paragraph from an "inclusive" warranty. I completely agree with him. Like I said before, you have to get the more expensive "exclusive" warranty. That is the one that covers everything except for what is explicitly excluded. Then you don't end up in the classic aftermarket warranty struggle over what is a "lubricated" part.

What you ought to do is PM me for my fax #. Fax me the warranty that you are looking at, and I'll tell you what it's strengths and weakness are. Or if you can email it, do that.