- #2821 of 2870
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Re: Mastertech Extended Warranty [deltheking]
by kirstie_h HOST
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Oct 02, 2009 (5:26 am)
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Replying to: deltheking (Oct 01, 2009 11:41 am)
I just put a link in the header of this discussion to a new article on the site, outlining the pitfalls of some of the third-party warranties.
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- #2822 of 2870
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Re: Mastertech Extended Warranty [carnetguy]
by mitzij
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Oct 02, 2009 (6:33 am)
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Replying to: carnetguy (Oct 02, 2009 4:29 am)
75-80% of premiums paid out in claims?
No business can survive with 20-25% markup.
Have a link to back up this figure?
Warranty Gold was AMBest rated A+ a couple of months before they folded.
They were also around for about 20 years.
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- #2823 of 2870
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Re: Mastertech Extended Warranty [bekins2]
by raa1
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Oct 02, 2009 (8:02 am)
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Replying to: bekins2 (Oct 01, 2009 11:51 pm)
he quoted me $1789 for a 4 year 60K miles for an 06 Corvette. I think that if you shop around you will get diffrent quotes from different dealers, at least that was the case when i was shopping for such onmy 02 EScape a few years back
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- #2824 of 2870
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Re: Mastertech Extended Warranty [carnetguy] GMPP pricing
by wlbrown9
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Oct 02, 2009 (9:02 am)
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Replying to: carnetguy (Oct 02, 2009 4:19 am)
Current pricing is located here http://www.gmoutlet.com/emailserver/quote/mg/mgn_email2009.htm
Look up your vehicle class... Exa, my Saturn Outlook 2008 with less than 12000/12 months is now a class C3... When I purchased in August just before my 12 months was up it was Class C
http://www.gmoutlet.com/gmpppriceindex.html
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- #2825 of 2870
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Re: Mastertech Extended Warranty [mitzij]
by carnetguy
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Oct 02, 2009 (12:18 pm)
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Replying to: mitzij (Oct 02, 2009 6:33 am)
if the premium on a warranty is $600, typically $450 to $480 is paid out in claims. This is the profit of the warranty provider, not the dealer. Not to tell you too much personal info but I know this from an accounting position I had with a firm that specialized in car dealers. The larger ones often have reinsurance companies that are off shore entities. They essentially own their own warranty insurance company and the dealer makes that 20-25% in underwriting profit in addition to the profit from the retail sale of the contract. It can be a very big piggy bank whose capital appreciation is non US taxable until it is repatriated.
Also Warranty Gold was not Am Best rated at all - the insurance company that backed those contracts was. I would have to check but it was likely a risk retention group and not an insurance company at all. An RRG acts as an insuror but is not subject to the same reserve requirements of a true insurance company and is generally grossly undercapitalized.
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- #2826 of 2870
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Re: Mastertech Extended Warranty [carnetguy]
by deltheking
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Oct 02, 2009 (1:04 pm)
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Replying to: carnetguy (Oct 02, 2009 12:18 pm)
Just read this article .And as always 3rd party warr are junk,crap worthless.No amount of justification is going to change that fact. 
Chrysler CEO can say his cars are the most reliable on this planet.Is it true?? Hell no.Anyone can say anything he wants. But the bottomline is always the same--3rd party warr is junk! 
link title
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- #2827 of 2870
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Re: Mastertech Extended Warranty [carnetguy]
by deltheking
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Oct 02, 2009 (1:09 pm)
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Replying to: carnetguy (Oct 02, 2009 12:18 pm)
Check the facts.Warranty Gold was AM Best rated before it went kaboom!
here`s the link:
link title
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- #2828 of 2870
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If you are tempted to buy an extended warranty
by euphonium
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Oct 07, 2009 (7:28 am)
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you shouldn't have bought that vehicle in the first place. 
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- #2829 of 2870
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Re: Mastertech Extended Warranty [carnetguy]
by mitzij
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Oct 07, 2009 (12:26 pm)
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Replying to: carnetguy (Oct 02, 2009 12:18 pm)
Oh, I see! Your 'Premium' is the money the service contract company receives, not the amount the customer pays out. That makes a big difference! The middleman, be it the dealer or a website, makes a sizeable profit on top of the 'premium'. The average consumer would think when you say '80% of premium' that you are talking about the amount he forked out for the contract.
I find it very unusual that a company would only have a 20% markup, considering overhead, personnel, and other costs.
Yes, Warranty Gold had a risk retention group.
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- #2830 of 2870
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Re: Mastertech Extended Warranty [mitzij]
by deltheking
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Oct 07, 2009 (1:14 pm)
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Replying to: mitzij (Oct 07, 2009 12:26 pm)
Yes,Warranty Gold was a scam !! A rip off company!! 
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