extended warranty plans
Called my dealer and wanted to take advantage of an extended service plan, Cornerstone, they offered at date of purchase last year. To my surprise he said that there was a rate increase in April of 40...
Forum Discussion
These things are NOT warranties. Only the Original Equipment Manufacture (OEM) can offer a warranty. These are service plans. The difference will become clear if you have to go to court. They are generally full of loopholes because after all claims paid = profits down, claims denied = profits up. Read the fine print very carefully what the big bold print promises the small print takes away. A very common loophole is to say that part is not covered if its failure is caused by a non covered part. Then in the fine print it will say that gaskets are not covered. Water pump goes out, sorry not covered because it must have been a gasket even if the mechanic says it was a broken shaft (this happened to a friend. Because all you have is a service contract your only recourse is take them to court. One last thing is to check with your local dealership or mechanic to see if they will deal with the company you chose. Many won't because they have been burnt too many times.
