Warranty Direct or other warranties

Has anyone had any experience with "WarrantyDirect" or any other aftermarket
auto warranty companies?

 

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
here.

Refinish King

 

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.

 

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

 

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.

 

That was a FORD? It required a new diferential?

Boy that's news....LOL


Scott in Florida

 

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

 

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

 

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