Re: RFI - Extended Warranty

["James A. Zwahlen" <jazman@cnmnet.com>]

Robert Myers wrote:
> 
> Hey Y'all,
> 
> I bought my current '89 200TQ about a month ago.  Today I received an offer
> of an extended warranty from:
> 
> Warranty Corporation
> One Warranty Plaza
> 4400 Government Blvd.
> Mobile, AL
> 
> Anyone know anything about this outfit?  They are offering an extended
> warranty on my car.

There are two types of extended warranties:  1) Those that list whats covered, and 2)
Those that list what's not covered.  In general, the one that lists what's not covered 
is a superior warranty, because under 1) above, unless it's SPECIFICALLY MENTIONED then 
you are SOL.  For example, if a covered part fails because of seal, hose, bearing,etc.
that is not covered, they will deny your warranty claim. 

I've had two extended warranty agreements and one was with Warranty Corporation. I had
a three year extended warranty on my 1985 5000S (after the 2-year factory warranty),
and a 2 year extended warranty on my 1987 5000CS TQ.  The first warranty was superior, 
since it listed a few exclusions, (and because the '85 needed more repairs).  The 
warranty more than paid for itself.  However, on the '87, the I recouped only the cost 
of the warranty, a break even, because the '87 was/is more reliable than the '85, and 
when I tryed to file a claim, 50% of the time, the company found a way to deny the 
claim.

When we bought our '93 100CS we did not buy the extended warranty, we are 'self-insured'
fancy way of saying no warranty.   : )

Also, ask about the claims procedure.  Do you have to wait a day or longer for the 
claims adjuster to inspect your vehicle in the shop, or can you just mail in the claim?
Typically, the warranty process can delay a repair for a day or longer.

In summary, it's a crap shoot; just like the casinos, on average, the warranty company 
has to pay out less than they collect to cover administration and profit.