Warranty Direct or other warranties

Discussion in 'General Motoring' started by john smith, Mar 3, 2004.

  1. john smith

    john smith Guest

    Has anyone had any experience with "WarrantyDirect" or any other aftermarket
    auto warranty companies?
    john smith, Mar 3, 2004
  2. I do some work on cars that have aftermarket extended warrantties:

    For the most part, most pay, but only book time, as most shops charge, but
    they never pay the shop's labor rate. They pay low ball labor rates, and
    would rather install used than overhaul an assembly.

    Other than that, they are regulated by the state insurance commission of
    your state. If they play, you call the state insurance commission, and they
    will put them in line.

    I hope this helps?

    If you have a more specific question, please do not hesitate to post it

    Refinish King
    Refinish King, Mar 3, 2004
  3. john smith

    Art Guest

    What happens when they go out of business the day your transmission fails.
    If you are going to get an extended warranty get it from the manufacturer.
    Even if a 3rd party warranty company has to put up a bond with the state
    insurance regulator (may not be true in every state) it probably won't cover
    all claims. One went out of business in NC a while back and it was a mess
    for customers.
    Art, Mar 3, 2004
  4. john smith

    AZGuy Guest

    I've had Warranty Direct for three and a half years and they paid $75
    with no problems for rental car (during a factory warranty repair) and
    also paid the regular rate of the Ford Dealer to rebuild the
    differential ($860). They didn't pay for the new fluid and gasket,
    about $50. I paid around $1300 for the warranty and have recovered
    about $1000. It runs another 3.5 years or 100K miles.
    Elbridge Gerry, of Massachusetts:

    "What, sir, is the use of militia? It is to prevent the
    establishment of a standing army, the bane of liberty. . .
    Whenever Government means to invade the rights and liberties of
    the people, they always attempt to destroy the militia, in order
    to raise a standing army upon its ruins." -- Debate, U.S. House
    of Representatives, August 17, 1789
    AZGuy, Mar 6, 2004
  5. john smith

    lemstraf Guest

    Bought Mazda pickup (new) which came with "aftermarket", i.e.
    non-Mazda warranty. Warranty company went out of business before end
    of warranty.
    Beware - these are scams to avoid warranty claims.
    lemstraf, Mar 6, 2004
  6. That was a FORD? It required a new diferential?

    Boy that's news....LOL

    Scott in Florida
    Scott in Florida, Mar 6, 2004
  7. john smith

    MajorDomo Guest

    Save your money!! Historically only about ONE PERCENT of all
    manufactures extended service plans, ever pay out more than
    the cost of the plan and its deductibles. If it were me I would
    put the price of the warranty in an interest bearing bank
    account. If you have a covered repair draw the repair cost, less
    what the deductible would have had to pay, to pay for the repair.
    The odds are you will come out way ahead. IF you believe you
    will beat the odds, then buy one sold by the manufacture. Few
    dealers or repair shops will honour after market warrantees
    because of their many restrictions. You have to pay the bill,
    then seek reimbursement from the warranty seller.

    mike hunt
    MajorDomo, Mar 6, 2004
  8. Extremely good advice:

    Except for the payment!

    Most paid before we had the car finished.

    Some were PIS'a, but the State Insurance Commission of Pennsylvania oversees
    the Extended Warranty Companies, and licenses the sellers, mostly the used
    car dealers not affiliated with a car company for the aftermarket brands.

    Call the State Insurance Commission, send the complaint with a copy to the
    warranty company. See how fast they resolve it.

    Refinish King
    Refinish King, Mar 7, 2004
  9. john smith

    MelvinGibson Guest

    I believe you missed the point of my post. 'Historically only
    about ONE PERCENT of all manufactures extended service plans,
    ever pay out more than the cost of the plan and its
    deductibles.' I was referring to the fact that even the best of
    warranties from manufactures paying just claims are not a good
    investment. On average 99% never pay out what they COST, let
    alone more than they cost. Believing one will save money buying
    an extended warranty is a fallacy.

    mike hunt
    MelvinGibson, Mar 7, 2004
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