Extended Warranty

[sauernote]

I am considering buying an extended warranty and did a search on this site for information. Question for T02Bird: you stated in an earlier post that you purchased a policy from OneSource. I'm sure it''s too early for any claims through them, but do you have any information about how they would reimburse you if your dealer (or garage) refused to honor their policy? Or what kind of hoops they would make you jump through? This, as I understand it, is the major reason people don't buy third party policies. I wouldn't mind paying up front if I knew that eventually the insurance company would pay up. Right now, OneSource is offering a policy for 10years/100,000 miles with 0 deductable for $500 less than a Ford policy with 7/75 and $50 deductable. Anyone else have experience dealing with this kind of policy on any of their older cars? Any input would be welcome.

 

[beicholz]

My personal experience with these warranties (but not this company in particular) has not been good. My advice:

* Make sure it's really bumper to bumper. A favorite trick of these companies is to tell you everything that's INCLUDED, but not everything that's excluded. Look for phrases like, "Items not specifically listed as covered by this warranty are not covered." They typically exclude the items that have problems.

* Look for clauses that might invalidate the warranty, such as not following the maintenance schedule. Keep in mind that if an independent shop services your car, even if they followed the schedule, the company might deny a claim, based on qualifications of the shop. Yes, you could sue them, but would it be worth the effort? Could you prove your shop didn't damage the car? That leaves the dealer, and their sky-high pricing, if you really want to be safe.

* Keep in mind that in the event of a serious claim (engine, transmission, etc.), the companies will do everything they can not to pay. For example, they might look at the transmission and claim that the car has been abused. How could you prove that it wasn't?

That's it, based on my experience. The maintenance insurance companies are just that - insurers. Their incentive is not to pay claims.

Perhaps there are some really good warranty companies out there. Anybody know of one? I'd love to give some business to a really good, honest company.

------------------
Bob Eicholz
2003 Premium Whisper White / Whisper White

 

[whvt01]

When is an extended not worth the $

Have discussed this with both T-Bird and Corvette owners.

My stance has been been for us, it would be a waste of
money since the two cars maybe rack up 3000 miles apiece
during the year.

Ford sent a chart with when things start to go wrong and
mileage wise you should near the 50-60,000 before
components go.

The vette did have to go in for a new rear-end seal about
a month before the warranty expired. GM installed bad
seals and most have had them replaced. To do an extended
on that car for additional 3 years was $2500.00. So felt
it would be an extraordinary event with car to have a bill
like that. And thinking the same with the T-Bird.

 

[XCR440SP]

I sent you a PM with some info on Ford ESP's. I recomend avoiding the aftermarket ones. Many dealers won't accept them (too much work to get paid) and you'll have to pay and get a refund from the ESP company. Anther problem is that if they go bankrupt, your out all your money. We just had a company do this and its caused a lot of problems, both for dealers that sold and honored the warrantys and for customers who didn't get what they paid for.

As to whether its a waste of money or not, its just like car insurance, the companys making money or they wouldn't offer it, but if you use it, it will be worth having. The lack of miles explanation is more of a reason to purchase for me, If your only going to have 9,000 miles at the end of your three years, you haven't got enough to verify that everything is OK, the normall problems seem to happen at 0-20K miles or after 50K