Last post on Oct 22, 2012 at 12:11 PM
You are in the Smart Shopper
What is this discussion about?
Mar 08, 2004 (6:16 pm)
Are you familiar with reinsurance? Do you know when that reinsurance will kick in? I doubt you are.
Mar 12, 2004 (11:29 am)
Being an Accountant i Know what Re-insurance is!! In fact, if you do your research properly not a single RRG based in the US has fallen. NWIG was based in Cayman Islands (1st mistake I made) and due to that left their consumers unprotected. Do your research and chose the compnay that best for you, I chose WarrantyWarehouse and have had 2 claims paid hassle free. Maybe they are not right for you, but they have done me right!!
#19 of 36 I guess my question
Mar 12, 2004 (11:46 am)
is why take the chance?
This is my/yourmoney we're gamling with here - not some unnamed client.
Mar 14, 2004 (4:51 am)
When one touts a company so much, one is either an employee, commissioned sales agent [referral fees], or scared to death that the company they paid will go out of business.
Over the years these boards [not just Edmunds] have been full of shills. Everyone has an agenda!
Not saying that is the case, but for every negative [concern] from the moderator and myself, a positive reenforcement balances us out.
That said I had a great experience with TRW [before they went out of business] my $1,000 returned over $8,000 in 2 years...[back in 96-97]
Most don't realize that these service contracts worked in the past because of inflation and the high returns on your invested premiums .In todays low interest rate enviroment the old $1,000-$1,500 premiums won't work.
An acurarial accurate number would mean these policies should cost $2500 for 100k term.
Saw one policy for a Range Rover that was $4300 for 100,000 miles, they probably will stay in business and pay off.
#21 of 36 At least one warranty company
Mar 14, 2004 (8:48 am)
Refuses to sell warranties for anything built by Rover for any price.
That should speak volumes!
4300.00 probably isn't enough for such a troublesome vehicle.
Mar 15, 2004 (10:47 am)
If you don't mind taking the time, tell us about the reinsurance Warranty Warehouse has on the policies. Thanks!
#23 of 36 Warranty Warehouse - Too Many Credibility Questions
Apr 29, 2004 (4:53 pm)
I don't care too much for auto warrantys, but I was looking around for my sister. I called a few companies. Some better than others. This company sounds like canned salesmen selling cars. All they do is put down other companies selling similar products and try to tell you they are the best. Their reinsurnace company is St. Charles, which has only been around only for a few years. They just started selling these warranties around 2 years ago. They claim in business since 1983 according to BBB report.You can tell their operators are paid by commission and really don't care about us. I will probably have my sister go with either her credit union or back to the dealer. They say buyer beware.
Feb 20, 2005 (4:57 pm)
discussion is reactivated by request.
#25 of 36 Vehicle Service Agreement--Read it carefully BEFORE buying!
Feb 22, 2005 (4:11 pm)
Having carefully read the Vehicle Service Agreement (Platinum), I am going to pass for now, on this warranty service. It is the document that will control if you have any problems and all the complaints in the world to the Better Business Bureau won't matter if American Guardian strictly complies with the agreement and remember, only a small number of unhappy customers take the time to complain. Here are some of the items I found that concern me:
Page 4--"Replacement parts will be of like kind and quality and may include new, remanufactured, rebuilt or used based on the Administrator's option;
Page 7--don't fall for the "Optional Additional Benefits";
Page 8--receiving full benefits under the Agreement is subject to "...keeping receipts for services from the date of vehicle purchase." How many people can satisfy this requirement?
Page 8--"LIMIT OF LIABILITY-The total benefits paid or payable under this Agreement shall not exceed the actual cash value (ACV) of your vehicle or $10,000.00, whichever is less." Wow, haven't seen this limitation in some of the other warranties out there--have you? You better be able to prove that you have followed the manufacturer's recommended maintenance, too.
Page 10--"Pre-existing conditions that have manifested through the gradual reduction in operating performance and whose condition predates the activation of the service agreement." If this clause doesn't apply in certain situations, then they should be spelled out. Can't rely on salespeople to spell this out orally--won't mean anything when the clause is enforced by American Guardian--when your engine or transmission goes (after manufacturer warranty expires).
Page 12--unable to find proof tying St. Charles Insurance Company, R.R.G. to Hannover Re should St. Charles go under like those backing Warranty Gold. Should have a declarations page available on web-site.
Many of the above issues do not appear in the equivalent agreement used by Warranty Direct; however, I wouldn't vouch for any such company at this point and I haven't addressed the quality of service or how these companies are insured. All of them need to create a code of conduct and standard language for their contracts, but I suspect profits are higher doing business the way they do now. Tread carefully and good luck to all.
#26 of 36 Very good point,
Feb 22, 2005 (4:23 pm)
and something I've seen from several aftermarket service contract companies...
"Page 4--"Replacement parts will be of like kind and quality and may include new, remanufactured, rebuilt or used based on the Administrator's option"
That means the administrator or adjuster can find a used (salvage yard) engine or transmission (or rear differential) and have it installed in your vehicle. By contract, they have the right.
Seriously ugly - and I've had techs who had to clean off mud and rust from an engine that sat in a salvage yard before they installed it. Problem is, most dealers and shops have 12/12 warranties on their work, so it ropes them into providing a warranty on a used motor out of a wrecked car or truck.
That's another reason many dealerships won't deal with private service contracts.