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Warranties Backed by a Risk Retention Group

68 messages,  Last post on Sep 16, 2009 at 11:47 AM

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What is this discussion about? Car Warranties

Messages Page 3 of 7

#19 of 68 mikefm by mitzij

Mar 18, 2004 (10:28 am)

Yeah, my b-in-law talked me into buying an extended 'warranty' on a cd player back in '94. It was only $50, but I never needed it. The player still works great. It still bugs me that I forked out extra money for no good reason. I chalk it up to youth (20) and inexperience.

#20 of 68 update on Warranty Direct by xpfshost

Mar 18, 2004 (12:38 pm)

OK. Finally got someone to 're-calculate' my refund after faxing info back over to them last week. NOW they say that they're sending me another $233. Can't those people add??? I'm still out about $233. $99 of that was money I had to pay to a vehicle inspection company to come out to certify my car before the warranty could take place. $50 went to a processing fee because I cancelled my policy early. Unfortunately, they hit me with the fact that the policy starts at -0- miles, so even though I've only driven about 1K since the warranty started, I've actually (in their minds) used over 30% of my warranty since my car has 35K on it and the warranty goes up to 100K. Nice. At least I got something back. I'm still not happy I had to have them 're-calculate' the refund...
 
xpfshost.

#21 of 68 Warranties by blueiedgod

Mar 19, 2004 (8:04 am)

Qoute by mikefm58: "I do purchase the computer manufacturer's warranty that gives me email or phone support for 3 yrs. as I know a little bit about computers"
 
What I have learnt over the years, especially with computers, that they depriciate faster than cow dung cools. The modem that failed on your computer was probably still covered by its manufacturer's warranty. Besides, even the most expensive, hardware type modem, is about $80. I am pretty sure that a store built computer had a cheapo sub-$10 winmodem.
 
I am always sceptical about warranties other than manufacturer's, be it cars, computers, electronics, other merchandise. In order for those companies to stay in business and pay the executives million dollar slaries, they have to be profitable, if they fulfill every claim they will not be profitable and will not be able to afford million dollar salaries.
 
Most warrnaties have exclusions that no one bothers to read. Even manufacturer's warranties exclude many things. Chances of something major, like engine or tranny failing after basic warranty are slim if the component has not failed this long. Good routine maintenance will make the car run indefinateley, some parts will require periodict replacement, but these are the parts that are not covered by the warranty.
 
Generally, I would say stay away from extended warranties, put that money in the high yeld savings (ING direct or E-trade) or 3 year CD, and then see if you end up on top after 5 years.

#22 of 68 re: blueiedgod by mikefm58

Mar 19, 2004 (10:45 am)

<The modem that failed on your computer was probably still covered by its manufacturer's warranty. Besides, even the most expensive, hardware type modem, is about $80. I am pretty sure that a store built computer had a cheapo sub-$10 winmodem.>
.
At the time (1999), I was ready to switch to Road Runner but I thought it was a good idea to test my warranty. Glad I did before something broke and I needed it, not sure what modems were going for back then. I never did fix/replace the modem.
.
My thoughts exactly on extended warranties in general. If I do consider one, it's only with the original manufacturer (that is after my WG lesson). And I read the fine print first to see if they sell it to a 3rd party.

#23 of 68 Oh...Oh... by angellove

Apr 12, 2004 (9:21 am)

Looks like something is rotten in the state of Denmark or should I say New York!!!
 
Doing my routine checking on the Risk Retention Industry and trying to save innocent individuals from making the same mistakes that I and thousands of others did with National Warranty Insurance RRG..I found some intersting information.
 
Looks like National Service Contract Risk Retention Group, owned by Interstate Dealer Services the parent company of Warranty Direct, has refused to be rated by AM Best!!! Their rating changed from A- to B++ to a NR-4!!! AM Best states that an NR-4 rating means: "Assigned to companies that were assigned a Best's Rating but request that their rating not be published because the companies disagree with Best's rating conclusion".
 
I wonder why they disagree with the findings? Is it really becuase the rating was about to be lowered again? Sounds fishy to me!!!
 
Oh, wait a minute isn't Warranty Direct a sponsored link to Edmunds? Looks like Edmunds needs to rethink their relationship with Warranty Direct before it becomes to late!!!

#24 of 68 Triad Advantage by jck1962

Apr 22, 2004 (7:00 pm)

Hi, I purchased an extended warranty through National Warranty Insurance Company.I have read about other warranties such as Warranty Gold and Smart Choice. I have Triad Advantage, does anybody else have this warranty? I have tried contacting them through the phone and through their website www.thetriadadvantage.com with no luck. I paid $1200.00 for this warranty and now the car dealership that I bought my van from said that I have to foot the bill and submit my repair bill to a company that I can't even get a hold of in hopes og getting reimbursed, I would think the dealer would be responsible for the cost and that they would have to try to get reimbursed, they are the ones who sold me the warranty!thanks for any comments on this. John K.

#25 of 68 Hmmm... by driftracer

Apr 23, 2004 (6:18 am)

Don't know how many times I've gone over this one:
 
"now the car dealership that I bought my van from said that I have to foot the bill and submit my repair bill to a company that I can't even get a hold of in hopes og getting reimbursed"
 
Yes, that's correct.
 
"I would think the dealer would be responsible for the cost and that they would have to try to get reimbursed, they are the ones who sold me the warranty!"
 
Sorry, and not to be unsympathetic, but you're on your own.

#26 of 68 by mitzij

Apr 23, 2004 (7:36 am)

Yeah, there's probably a line in the contract that puts responsibility on NWIC and off the dealer. On this board, I've read of a couple of dealers that are footing bills for customers, or doing a 50/50 split, but they are under no Legal obligation to do so.
 
I'd say you're stuck with a very expensive piece of paper.
 
Now: next time someone says 'give me $1200 and sign this contract and I'll fix whatever breaks on your car for the next four years,I promise',
RUN.

#27 of 68 RUN LIKE HELL ! by rayt2

Apr 26, 2004 (1:07 pm)

Stick with the manufactorers warranty or you'll be taken for a ride everytime ! A very costly ride. Been burned by Warranty Gold and not to happen again.
 
Ray T.

#28 of 68 Re: Nervous about Warranty Gold?? [angellove] by danrosin1

Dec 13, 2004 (3:23 pm)

Replying to: angellove (Jan 15, 2004 10:34 am)
RRG's always have a lower cost and will cover cars that Insurance companies do not want. Web sites like aawarranty.com are trying to sell you with fear. (Have no clue)
I have been in the business for 35 years. I can tell you that how long a warranty company has been in business, and if they pay claims mean a lot more then who the Insurance Company back them up means. Warranty Gold was rated A+ from AM Best a week before they went Bankrupt.

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