extended warranty experience

[Mike D]

Hi My name is Mike,

I just purchased a 2002 Cab with 15,000 miles. I have searched the forums and found a couple recommendations for extended warranties. The companies I have found searching are Buyer's Choice/Royal Administration and insurancepolicies.com

Thanks

I look forward beinga member of renntech!

[Mike D]

bump, anyone? Thanks

[Loren]

It might help if you post where you live.

Here in California only state approved companies can sell extended warranties. Car dealers (here) can not sell their own warranty they must sell 3rd party approved warranties.

Regulations vary from state to state.

[Wyldstyle]

Try Warrantech. I heard they are pretty dependable. The Platinum Plan.

[Team996]

I urge everyone to stay away from Continental Warranty... their high-pressure sales tactics in addition to [literally] hundreds of complaints on BBB/RipoffReport.org were enough to spurn me to cancel my policy with them (it took at least a month to get my refund). Coincidentally, I later found out that my mother already had one with them for a few years and says they've paid for more than the policy is worth on her Murcielago, which makes them sound more legitimate than I've heard. I'd still stay away, though.

I think I'll buy the bumper-to-bumper "Warranty America UVP" from AA Auto Warranty for my 75K-mile 2001 C2; they seem legit to me so far (I've been talking with them for several weeks) and the plan's coverage is hard to believe for my car. If you like the plan (you can get the better one since you only have 15K miles) and want a contact number, let me know.

Hope this helps some. I've attached a sample of their contract.

AA_Auto_Warranty_UVP.pdf

Edited January 12, 2008 by Team996

[1schoir]

Hi My name is Mike,

I just purchased a 2002 Cab with 15,000 miles. I have searched the forums and found a couple recommendations for extended warranties. The companies I have found searching are Buyer's Choice/Royal Administration and insurancepolicies.com

Thanks

I look forward beinga member of renntech!

Mike:

It is very important to verify that the Warranty Company is financially sound and has adequate reserves. There are a number of horror stories floating around on the message boards where posters have paid big $$$ for a warranty, only to find the company "dissolved" within a few months.

Best to check with your state's Better Business Bureau and your state's insurance department. Also do a search on "Ripoffreport.com"

Regards, Maurice.

[Mike D]

Thanks everyone! I am in PA

[Team996]

Hi My name is Mike,

I just purchased a 2002 Cab with 15,000 miles. I have searched the forums and found a couple recommendations for extended warranties. The companies I have found searching are Buyer's Choice/Royal Administration and insurancepolicies.com

Thanks

I look forward beinga member of renntech!

Mike:

It is very important to verify that the Warranty Company is financially sound and has adequate reserves. There are a number of horror stories floating around on the message boards where posters have paid big $$$ for a warranty, only to find the company "dissolved" within a few months.

Best to check with your state's Better Business Bureau and your state's insurance department. Also do a search on "Ripoffreport.com"

Regards, Maurice.

I think it's "ripoffreport.org" ...and how do I "verify that the Warranty Company is financially sound and has adequate reserves?"

Edited January 12, 2008 by Team996

[White987S]

You could also "self fund" your own by taking the $2-3K and putting into an interest bearing account to be used only for car repairs.

Congrats on the nice new car! :)

[emalkoc]

You could also "self fund" your own by taking the $2-3K and putting into an interest bearing account to be used only for car repairs.

Congrats on the nice new car! :)

I bought my 911 C4 recently with additonal 36000 miles/3 years and bumper to bumper from local credit union. I paid a lot $5k for platinum, could have gotten the silver for 3.5k but so far paid for $2K dealer work for me...In two months, rear light switch, door switch, spark plug tubes, main rear seal, misc...I am thinking of whether I did paid too much but I bought the car about 12K below KBB, with extreme negotiations over 3 mos...

I could cancel and prorate the warranty also...I could sell with the warranty as well. It is from Mercury..Except emissions and navigation unit, they cover everything.

[Team996]

You could also "self fund" your own by taking the $2-3K and putting into an interest bearing account to be used only for car repairs.

Congrats on the nice new car! :)

I bought my 911 C4 recently with additonal 36000 miles/3 years and bumper to bumper from local credit union. I paid a lot $5k for platinum, could have gotten the silver for 3.5k but so far paid for $2K dealer work for me...In two months, rear light switch, door switch, spark plug tubes, main rear seal, misc...I am thinking of whether I did paid too much but I bought the car about 12K below KBB, with extreme negotiations over 3 mos...

I could cancel and prorate the warranty also...I could sell with the warranty as well. It is from Mercury..Except emissions and navigation unit, they cover everything.

Obviously, the insurance companies come out on top: They get our cash up front, and we get [hopefully] peace of mind. The only question you need to ask yourself is whether or not $5K is worth your peace of mind. I think $5K's a little much for your car, but if (1) you could afford it and (2) it lets you sleep better at night as long as you own an expensive car, it's worth it! When you think about it, "peace of mind" is pretty hard to fix with a price tag, as any insurance salesman will emphasize. They always win though, in the long run. But so do you, when you frame it in this context. Remember, you shouldn't be betting solely on whether or not they'll pay out more than you paid for the policy; that's not actually what they're selling. They're selling you a warm and fuzzy feeling... an unusually expensive one, in your case :D Just my 2 cents...

[emalkoc]

You could also "self fund" your own by taking the $2-3K and putting into an interest bearing account to be used only for car repairs.

Congrats on the nice new car! :)

I bought my 911 C4 recently with additonal 36000 miles/3 years and bumper to bumper from local credit union. I paid a lot $5k for platinum, could have gotten the silver for 3.5k but so far paid for $2K dealer work for me...In two months, rear light switch, door switch, spark plug tubes, main rear seal, misc...I am thinking of whether I did paid too much but I bought the car about 12K below KBB, with extreme negotiations over 3 mos...

I could cancel and prorate the warranty also...I could sell with the warranty as well. It is from Mercury..Except emissions and navigation unit, they cover everything.

Obviously, the insurance companies come out on top: They get our cash up front, and we get [hopefully] peace of mind. The only question you need to ask yourself is whether or not $5K is worth your peace of mind. I think $5K's a little much for your car, but if (1) you could afford it and (2) it lets you sleep better at night as long as you own an expensive car, it's worth it! When you think about it, "peace of mind" is pretty hard to fix with a price tag, as any insurance salesman will emphasize. They always win though, in the long run. But so do you, when you frame it in this context. Remember, you shouldn't be betting solely on whether or not they'll pay out more than you paid for the policy; that's not actually what they're selling. They're selling you a warm and fuzzy feeling... an unusually expensive one, in your case :D Just my 2 cents...

I shopped quite a bit actually...And most warranty companies are around $4-5K for my car... Considering my car needed 2K work, hence I bought the warranty such that they would fix it:-) There is still 3 year and 36K miles, I believe this car will cost much more than this...I also own a BMW and over 2 years repairs costed me over 3K...go figure.

[masq]

I bought a policy from www.insurancepoliciesonline.com a few months ago. It was a 4 year, 48k mile warranty with 0 deductible. The underwriter of the policy is The Warranty Group, and they are very easy to deal with. In fact, my service advisor said they were one of the better copmanies he's dealt with.

I have a write up of my experience in the forum, so search for it.

[1schoir]

Hi My name is Mike,

I just purchased a 2002 Cab with 15,000 miles. I have searched the forums and found a couple recommendations for extended warranties. The companies I have found searching are Buyer's Choice/Royal Administration and insurancepolicies.com

Thanks

I look forward beinga member of renntech!

Mike:

It is very important to verify that the Warranty Company is financially sound and has adequate reserves. There are a number of horror stories floating around on the message boards where posters have paid big $$$ for a warranty, only to find the company "dissolved" within a few months.

Best to check with your state's Better Business Bureau and your state's insurance department. Also do a search on "Ripoffreport.com"

Regards, Maurice.

I think it's "ripoffreport.org" ...and how do I "verify that the Warranty Company is financially sound and has adequate reserves?"

Team996:

You are correct, it is ".org", not ".com". Sorry.

Since you are in California, a good place to start is by verifying whether the warranty company is insured. In California, a warranty company's insurer must be licensed by the California Department of Insurance, with one exception. It can also be insured by a "risk retention group", which is a type of insurance company. "True" insurance companies are more regulated than Risk Retention Groups (and that designation should appear as part of its full name on the contract) and offer consumers more protections that do Risk Retention Groups. There is a toll-free number that you can call in California to verify whether the insurance company that insures the Warranty Provider is licensed by the California Department of Insurance (1-800-927-4357).

Also, be aware that the California Department of Insurance does not regulate the finances and claim handling of risk retention groups as closely as it does insurance companies that are licensed in California. California law also allows you to cancel any service contract. With a used car, you can get a full refund if you cancel the contract in writing within 30 days after receiving the contract, assuming you have made no claims. If you have filed a claim, you can still cancel the contract and receive a partial refund. If the Warranty Company refuses to honor your cancellation or refuses to refund your money, you can then first have recourse with the insurance company, followed by the California Department of Insurance.

Also, in California, the Warranty Company itself (known as a Vehicle Service Contract Provider or VSCP) must hold a special license from the California Department of Insurance and companies are not legally permitted to sell service contracts directly to consumers over the internet. Only car dealers can legally sell you a service contract in California.

For a good indication of the underlying insurance company's financial strength, do a search with the insurance ratings company, A. M. Best, at www.ambest.com

Regards, Maurice.

[Team996]

Million dollar question (or maybe just $3-5K): Can you reasonably claim residency in a state other than CA? When I was looking around, no one would give me a quote because it's illegal to sell an after market warranty in CA (where I live). However, I guess since the military lifestyle is that of a modern-day gypsy vagabond's, we can pick any of the 50, and so I picked a DC policy. But, if you have family in another state, you should be able to use their address at which to base your policy... and use it in CA. Just some ideas.

[Mike D]

I ended up getting the platinum coverage from insurancepoliciesonline.com

60month/ 60k miles with a$100 deductable for just under $2300

Thanks for everyones input!

Drove the car back to Philly today from NY, Awesome! :D

[iponline]

CA is a very protectionist state when it comes to vehicle warranties. They make it nearly impossible for most aftermarket extended warranty companies to sell there by requiring them to only be sold through a dealership.

The plan offered by InsurancePoliciesOnline.com is available in CA. The reason is that it is an actual insurance policy and not simply an extended service contract. This is an important distinction. The policy is issued by Virginia Sureity Insurance Company, which is duly licensed in CA, and carries an A rating from AM Best.

[desidon]

I bought an extended warranty from my dealer for my 2002 c4s. Paid $4700 for 4 year/48K miles.

[Lightfall]

Would one of these warranties cover you if your engine decided to explode? $100 and the **** thing is replaced on their dime? Anyone heard of "MAP", was recommended here in CA at a dealer I was looking at an 02 at.

[Mike D]

Would one of these warranties cover you if your engine decided to explode? $100 and the **** thing is replaced on their dime? Anyone heard of "MAP", was recommended here in CA at a dealer I was looking at an 02 at.

You really need to read the policy carefully. There are two main types exclusionary and inclusive. Meaning everything is covered except what is listed on the exclusionary. Inclusive only covers what is covered, lubricated parts, etc

you can check the BBB online to look at the how the company satisfies complaints