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Question for all the learned board members.
I have never purchased one, have always stuck with the Manu's.
BUT here is my question as the title would ask...are these warranties actually warranties???..or are you really just buying an insurance policy??
Question being...you usually have some sort of a deductible with them correct???....also certain things are covered and certain things are not...unless you pay MORE to HAVE MORE covered...correct???....
and more importantly...these "warranties" really reimburse you..correct??..meaning the place that repairs your car whether it be a dealer or indie..gets paid by you and then you get your money back from the company...OR..do these guys accept the payment direct from the warranty company???
Thanks Guys
S
 

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Sergio,

I have looked into some of these warranties. there are many different ways they work. most do have deductables and yes most only cover certain items.

The problem i ran into while searching was they only covered up to a certain amount of the repair.

For instance the one I looked at was a powertrain waranty for 3k plus a 250 deductable per occurance. Not to bad but if only covered the engine to $3500.00 including labor. This seemed to be common regardless of the warranty I looked at. They all seemed very good until I crunched the numbers.

Ryan
 

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Brilliant question.

You are getting to the crux of one big issue with 'extended warranties', be they mfg or aftermarket.

They are CONTRACTS. Essentially it is a Mechanical Breakdown Insurance Policy.

It is not subject to federal warranty law (ie Moss Magnussen, etc)

On to your questions- coverage WILL vary based on the policy and the vendor; the way in which they pay will also vary; their customer service also varies.

It is incredibly hard to compare coverage and policies... virtually all have little 'pamphlets' that are 'coverage descriptions'... and will all say "See the policy for complete details"... they look at me like I am nuts when I ask for the actual policies.

But it is in the policy that you get screwed.

For example, take the infamous "change the radio, the engine warranty is void" story. This is prohibited by federal law in a manufacturers warranty- BUT IT IS PERFECTLY ACCEPTABLE IN A CONTRACT IF IT IS SPELLED OUT!

I recommend that anyone look at coverage exclusions and their definitions of 'wear and tear'... also only buy 'exclusionary' policies (these say 'we cover everything except x,y,z') Ones that list parts are very tough when it comes to denials.

A
 

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Mine paid directly to the dealer with a credit card.

It covered pretty much anything you can think of except for common wear items on any car (brakes, clutch, etc). I say this because there are some things that commonly fail on our M5s (like thrust arm bushings, for example), but these are covered as well.

The cool thing is that if something that is covered requires a service or part that isnt covered in order to fix, then it is also covered. In other words, my shot bushings messed around with the flex disk, and transmission mounts. After all this was done (and the thrust arms as well), the 4 tires were aligned and balanced. These last 2 services are usually not covered, but they were in this case.

Like mentioned before, it varies from company to company, but I hit the jackpot with mine. over $4500 worth of repairs done at the dealer from a $2400, 3-year/ 45k miles policy (bumper to bumper). All I had to pay was $200 in deductibles ($100 on 2 occassions). Everything was approved right over the phone without any issues.

If I didnt have this warranty, there wouldnt be an M5 parked in my garage right now.
 

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Brilliant question.

You are getting to the crux of one big issue with 'extended warranties', be they mfg or aftermarket.

They are CONTRACTS. Essentially it is a Mechanical Breakdown Insurance Policy.

It is not subject to federal warranty law (ie Moss Magnussen, etc)

On to your questions- coverage WILL vary based on the policy and the vendor; the way in which they pay will also vary; their customer service also varies.

It is incredibly hard to compare coverage and policies... virtually all have little 'pamphlets' that are 'coverage descriptions'... and will all say "See the policy for complete details"... they look at me like I am nuts when I ask for the actual policies.

But it is in the policy that you get screwed.

For example, take the infamous "change the radio, the engine warranty is void" story. This is prohibited by federal law in a manufacturers warranty- BUT IT IS PERFECTLY ACCEPTABLE IN A CONTRACT IF IT IS SPELLED OUT!

I recommend that anyone look at coverage exclusions and their definitions of 'wear and tear'... also only buy 'exclusionary' policies (these say 'we cover everything except x,y,z') Ones that list parts are very tough when it comes to denials.

A

++1,

Well put and summarize it well.
I had purchased extended warranty for my previous car(WarrantyDirect). It was exclusionary policy and had $0 deductiblle. At the time of the purchase I was a bit skeptical, and at the end I was very happy. Lets just say the company ended paid-out 3x the cost of the policy. And every claim, the company paid the dealer with their corp card. So I don't have to shell out a penny at all.

With the beast I also purchased an extended warranty (Mercury Insurance Group) as well (unfortunately it was with the same company whom I had purchased for my previous car. On this one the contract says any modification/alteration will void it).
Regardless I had done a lot of time to research to find a reputable warranty company, at the end I cancel my policy and got the refund (prorated) before I put my Bilstein PSS9 suspension last year.


Regardz,

J Irwan
 
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