WarrantyWarehouse.com - BE EXTREMELY CAREFUL - Car Forums

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#7 of 36 highrolla by mitzij

Mar 04, 2004 (8:37 am)

I'm glad you're happy with your service contract. There are many people who are tickled pink pre-paying for repairs. I hope the company does not go belly-up before your next claim.

This does bring me to an anecdote, however.
I work in the service dept of a small dealership. One of my customers came in for repair. He was gushing about the service contract he'd bought with his new truck. 'That's the best money I ever spent!' That would be great, but, his service contract had not kicked in yet. All of the repairs done to date were under GM warranty. Even after I told him this, he still stated that service contract was the best money he ever spent.

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#8 of 36 Mitij by highrolla

Mar 04, 2004 (11:42 am)

I am not sure what you mean....I did not have to 'Pre-Pay for repairs'....At this point I am already head of the game by $450.....

Worrying about the compnay going Belly-Up? Major compnaies all seem to fall, Enron, Ect...What it comes down to is peace of mind!! I felt good about the compnay even after my experience with Gold!!

I chose them based on their partnerships, coverage, past history, and the fact they have 24/7 Customer Service....It wqas better than getting 'Robbed' by my dealer...

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#9 of 36 highrolla, by mitzij

Mar 04, 2004 (2:53 pm)

Well, most people who buy service contracts do not see such a quick return of their 'investment' That's why I call it pre-payment. Maybe you had a preexisting condition and the company didn't catch it. Maybe you got 'lucky' and had a major failure. I hope you get 'lucky' again. I work for a dealership service department. In the time I've been here, I've only seen a handful of people recoup their 'investment'.

But it is a free country, buy a service contract if you really want to, but you'll see few glowing endorsements on this forum.

You might check in the archive for warranty gold customers who researched diligently and purchased plans. They were happy as larks until June of last year. WG had a stellar record, was in business for years, then, as if by magic, it all went away. Now thousands of people are left holding very expensive pieces of paper instead of their 'peace of mind'

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#10 of 36 by KCRam@Edmunds HOST

Mar 04, 2004 (2:56 pm)

highrolla, what mitzij means by pre-paying for your repairs is, when you buy an extended service contract, the company you buy from invests that money to pay your claims when you have them. So you're paying $1000 now for the transmission job 3 years from now that will cost $2000.

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#11 of 36 highrolla by jratcliffe

Mar 04, 2004 (4:04 pm)

Think about it this way: only one of the following two statements can be true for an independent extended warranty company:

1. The extended warranty company remains solvent.
2. The average customer gets back more in repairs than they spent on the warranty.

For a manufacturer-backed warranty, however, the equation is different. Maybe it's worth $450 a policy to GM to keep their customers happy, and coming back to GM. If an independent warranty company loses $450 a policy, it goes out of business pretty darn quick.

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#12 of 36 highrolla by jratcliffe

Mar 04, 2004 (4:00 pm)

Think about it this way: only one of the following two statements can be true for an independent extended warranty company:

1. The extended warranty company remains solvent.
2. The average customer gets back more in repairs than they spent on the warranty.

For a manufacturer-backed warranty, however, the equation is different. Maybe it's worth $450 a policy to GM to keep their customers happy, and coming back to GM. If an independent warranty company loses $450 a policy, it goes out of business pretty darn quick.

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#13 of 36 Oh...Oh...Jinksya by angellove

Mar 04, 2004 (4:41 pm)

Thank you Jinksya for letting us know who the adminstrator is. Now let me tell you who their insurer is...St. Charles Insurance Company R.R.G...as in Risk Retention Group. Now please go to AM Best and tell me what their rating is. I bet they don't have one!!!

You may have gotten your claim paid now...but so did all of us Warranty Gold customers until National Warranty Insurance Group R.R.G. collapsed. So I wish you good luck!!

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#14 of 36 jratcliffe - by driftracer

Mar 04, 2004 (5:07 pm)

2 perfect points!

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#15 of 36 jratcliffe by mitzij

Mar 05, 2004 (5:30 am)

didn't say it better myself!

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#16 of 36 Angel Love Your RIght by highrolla

Mar 08, 2004 (4:34 pm)

St. Charles is not rated but the policy is Reinsured by an A rated Company....Once again, one must go with their 'gut feeling' and I know I made the right decision. If I am wrong, I will let you know!!