EStreeter

I have a GMPP warranty on my C5 and its been great - paid for itself many times. Works just like the new car warranty - it breaks, you take it to a dealer and they fix it. I would definitely buy another GMPP anytime I could get one.

I have been researching other company warranties for a Tahoe I have that does not qualify for a GMPP because its out of warranty. Has anyone actually read these warranties? Many I have researched say something like this “All internal Components of the engine that require lubrication for operation” are covered, with an exclusion for “Harmonic balancer, engine block, cylinder heads, oil pan, and timing chain cover are also covered only if damaged by failure of a covered internally lubricated moving engine covered Component and condition.” What about valve springs in a head, sensors, leaking guides, throttle body or MAF, etc. When you think about it - that statement means they actually cover nothing. The transmission coverage has the same statement. When was the last time a lubricated part in a tranny tore up? Its usually a clutch pack or valve body or something that "doesn't" require lubrication. They specifically exclude the torque converter.
The electrical coverage does not mention any wiring or computers or sensors.

These things are

And the best part, they want $3500 for 25months or 25,000 miles. The cheapest one I found was about $2500 and it was filled with slippery "lubricated parts" that you had better understand before you buy - and I'm not talking about the car parts!

duckvett

You practically need a law degree to understand and protect yourself when buying these warranties. I once bought a used Suburban and thought it would be a good idea to buy the "highly suggested" warranty. Then when the transmission stopped shifting while 100 miles from home I found out just how effective these scams can be. The problem was an external speed sensor, not covered by the warranty. With towing this repair cost about $700. Later when the instument cluster went bad and started giving all kinds of erroneous reading, that was not covered either. $1200 wasted - no wonder the dealerships push these so hard - it is pure profit. Traded that Suburban and never looked back (or bought another warranty!).

jol

Absolutely right. Also, the dealer pays no more then 50% of the fee for the policy and therefore has a lot of flexibility in what they charge. There have been reports that many of these companies declare bankruptcy after having enough paying customers and you have no recourse. "Buyer beware".

DocMorgan

I'm looking at an '05 this weekend and trying to get the numbers down... and I see the same thing you are saying. I was quoted 1929 for 48months / 100,000 (registered on the odometer).

I found that through "carchex.com"... the company is Alpha Warranty Services... the details for the plan are found at :

http://www.carchex.com/docs/coverages/AWS_Full_2008.pdf

and it has all the slippery lubircated parts lingo that you were talking about.

I asked our corporate legal council about this as he is "motor minded", and he had this to say:

"Extended cogerage is generally not worth the paper its on. From the language you provided, this looks like no exception."

Will I buy it? Nope.

VETSTYL

Has anyone found a good plan that provided both reasonable coverage and not cost prohibitive?

Rumrunner

I am not trying to be a smart-A _ _ , I did some research on these programs when I bought my 99, it had just enough miles to be out of service date for warranty and past the allowed time for GMPP purchase.

I found mostly what you did and many shops when called explained that even though the company stated that they paid the shop directly unless that was a verified credit card payment from the warranty company for me to pick up the car after repair they must be the bill paid in full.

Meaning if the company did not pay I was expected to pay and fight it out with the company on my own.

I opted to not purchase the warranty, might I suggest that you invest the warranty purchase price and let that be you personal warranty, just a thought.

HWY HNTR

My dad had bought a warranty on his audi and they have treated him extremely good. The air suspension had a puncture in one of the airbags andd they covered it. Then the compressor went bad, covered it. It was like $5200 for the repairs. If anyone wants the name, shoot me a PM and Ill ask him next time we talk.

karateboi87

Was it ultra expensive or actually in line with what warranties are supposed to be?

I would like never buy a warranty from a dealer, unless I know it's not a rip-off coverage AND the price is negotiated. Consume reports had an article on extended warranty and they found that dealers get huge commissions, if you pay the full price, you are likely giving the dealer a HUGE profit.

GMPP sounds nice but for many of us, it's not avaliable

cor28vettes

Check into Mercury Insurance Group.

jayzze

i have one from whosale warr. for me cargo van they are decent they replaced my ac radiator and transmission and did not pay a penny so i am ahead since i paid 2200 i am in the plus colum

SCM_Crash

I went with an "other" company warranty for my 97 Formula back in 2001 because it was out of warranty and when anything broke I brought it to the dealer. Well, every single time something broke, the warranty didn't cover it.

I had a head gasket leak, they didn't cover.
My water pump broke, they didn't cover.
My Opti goes out, they didn't cover it.
My power steering goes out, they didn't cover it.
My rear defroster stopped working, they didn't cover it.

I couldn't believe that I'd paid $2K for a warranty that didn't cover ANYTHING. I came out of pocket on all of the problems. I didn't even fix the rear defroster because they wanted $1024 for a new rear window!

Nothing but a nightmare. I should have sued that company since they were unwilling to cover any single issue I had. They offered me $25 to "help" with the repair on the opti which I simply replied "Go **** yourselves!" I was so angry, I was almost going to fly to the east coast just to jam my foot up their asses.

I told 'em I want my money back for the warranty since it hasn't paid for anything and haven't had a chance to use it at all... They said no, but as soon as I had my lawyer call them, I got a check in the mail for the exact amount of money I paid for the warranty.

HWY HNTR

I doubt it. If I remember correctly it was close to 2k, either a bit under or over. Shoot me a PM if anyone wants details. I wont post the specifics on the thread.

karateboi87

Well, the point I was making is that.. For example, a dealer may tell you they can offer you a certain package for $3K.. but in reality, if you make an offer of $2K or even less, they might accept it. What that means is, they have huge profits in these warranties.

But I'm sure if you negotiate the deals become much better. The only thing I'm worried about are the terms as the OP has stated.. they may not pay for a lot of stuff.

HWY HNTR

I see what youre saying but im not sure how it relates to my dads policy. I never knew they were negotiable though.

Gray Ghost GS

Take a look at Continental Warranty (www.continentalwarranty.com) - I used them on my 2001 Dodge Dakota SLT 4x4 Quad Cab with very good results.

karateboi87

I was just curious as to whether your dad's warranty cost the price they quoted you as you buy the car, since as you stated, the coverage is very good and they took care of all the repair bills.

A lot of things are negotiable. For example, appliances, electronnics such as TV.

At the least, you can ask for free shipping or something.

karateboi87

I've heard of that company. Did you have any expensive repair bills? I think the OP's main concern here is whether these companies will actually pay for your repair.

rebelheart

The factory backed extended warranties like GMPP or Chrysler service contracts and I am sure Ford has one also,are well worth the money if you intend to keep your car.Most after market warranties are shaky at best.Almost all(even factory) have the internally lubricated parts clause which pretty much covers anything inside your engine or trans,Clutch packs and seal would be covered,as would say rocker arms or valves.The only way I have seen head gaskets turned down is if the car was overheated,and if you fight about that they generally will repair it as long as the over heating cause was also repaired.Good thing about factory backed warranties is you can use em even 3000 miles from home and a dealer is never far.Most provide a rental also.

devnull

I paid $2000 for my extended warranty...

SCM_Crash

^^^^^^^^^
I WANT ONE!!!!

Damn it.