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From: In a parallel universe. Currently own 2014 Stingray Coupe.
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I had the Ally warranty when they operated the GMPP and did not have any problems with them. But, that was a number of years ago, so hopefully someone who may have a more recent experience will post to your thread.
My son, who is a Chevy tech at a local dealership. tells me that Ally is first rate. His experience has been that, for most claims, Ally usually accepts the tech's analysis and doesn't insist on further scrutiny. Considering the cost difference, I would advise you to ensure that the coverage between the two warranties is equivalent before signing on the dotted line.
I bought the Ally Extended Vehicle warranty and also the Tire and Wheel warranty that my dealer offered when I bought my CPO 2017 Grand Sport in 2021. I think the Wheel and Tire warranty was about $900. Can anyone guess where this is going with wide body wheels? About a year after buying the car, I asked the the same dealer to check all four wheels for a possible balance issue. They found one rear tire with an irreparable nail puncture and three wheels bent beyond repair. Ally didn't blink and replaced all four items to the tune $2741. So, no, I wouldn't hesitate to recommend Ally.
P.S. I immediately ordered fully forged wheels - but that's a different story!