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Smart Shopper WarrantyWarehouse.com - BE EXTREMELY CAREFUL
34 messages, Last post on Sep 06, 2007 at 4:58 AM
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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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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. kcram Host Smart Shopper and FWI Message Boards |
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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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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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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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| 2 perfect points! | |
| didn't say it better myself! | |
| 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!! | |
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| Are you familiar with reinsurance? Do you know when that reinsurance will kick in? I doubt you are. | |
| 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!! | |
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