Extended warranty or not.

"Aftermarket company warranties are totally useless and not worth the paper they are written on"
When I bought a 2005 Ram Cummins in Jan 2013 with 90000 miles it came with a 3rd party warranty. It was one of the reasons I bought the truck.
A year later, I was told by the shop I had it to for service that the tranny bands had no more adjustment and I needed a new transmission to the tune of 3-5000. When I suggested to the shop that I had the extended warranty and wanted them to call the warranty co. they replied that the warranty wasn't worth the paper it is printed on(hmmm,where have I heard that before). So I called the warrant co. myself and explained the problem and they asked my 2 questions.1.Had the scheduled maintenance been kept up on the truck? and 2. Did I have the documentation to prove it? When I said yes they said they would cover the repair which they did.
I suspect extended warranty is like any other type of insurance. Read the policy to see WHAT is covered and then read what you have to do to ensure the warranty will cover it. In my case the ONLY requirement was that it had ongoing manufacturers service performed. It was as simple as that. I wonder how many people who say "its not worth the paper its printed on" actually had experience with 3rd party warranties.
Incidently,I've never gone back to the company (Berhausen Specialty) again who couldn't be bothered to check my warranty coverage. So they lost my business, lost me as a customer and incurred bad publicity.
Regards

Fred.

I have NEVER come out money ahead with an extended warranty. Now I don't bother to buy them, and just plan on fixing them.

I have a friend that didn't like the insurance rates on his home in Florida. Instead of paying almost $1,700 a year he started putting it in the bank (his home was paid off). He has over $40,000 in that account and so far so good.

As long as the place doesn't burn down before he banks enough money to replace it, I guess that's all good. At $1700 a year, that's going to take a while. I guess that's why most rational individuals--and those who can do basic arithmetic--carry insurance against catastrophic losses.

Paul Clancy wrote:
I've had an extended thrown in with a used truck purchase to make the sale. As soon as there was an issue - declined - pre existing condition loophole. Threatened legal and dealer repaired ONLY because I had an email from the salesman saying truck was mechanically sound. I think manufacturer extended may have a place but still overpriced generally - the house always wins. I will agree that most people are carrying FAR too much coverage in general but I guess whatever lets you sleep.

the other point about insurance versus extended warranty is the things we insure against are generally catastrophic and have potential to ruin us financially. Floods fire, death of a working spouse, serious illness and at fault accidents. Generally car and truck repairs don't pose that threat.

C-Bears wrote:


I have a friend that didn't like the insurance rates on his home in Florida. Instead of paying almost $1,700 a year he started putting it in the bank (his home was paid off).

$1700/year for homeowners in Florida nowadays is a relative bargain......

There are always extreme points of view when this subject comes up. If I was not maxing out my truck to its limits constantly by towing such a heavy FW I would not have even considered the Ford ESP extended warranty.

I have a friend that didn't like the insurance rates on his home in Florida. Instead of paying almost $1,700 a year he started putting it in the bank (his home was paid off). He has over $40,000 in that account and so far so good.

I've had an extended thrown in with a used truck purchase to make the sale. As soon as there was an issue - declined - pre existing condition loophole. Threatened legal and dealer repaired ONLY because I had an email from the salesman saying truck was mechanically sound. I think manufacturer extended may have a place but still overpriced generally - the house always wins. I will agree that most people are carrying FAR too much coverage in general but I guess whatever lets you sleep.

I just don't understand how so many spend thousands on other insurance products (life, health, home, auto, even home warranties) and single out extended warranties on vehicles as evil.

In a word, value. Third party companies offer products that are often overpriced and full of exclusions and loopholes that can make them essentially useless.

Paul Clancy wrote:
I'd pass on all of them. Engines and trans well maintained will hardly ever fail unless tuned or bad fuel injested- either of which voids warranty anyway. With most the deductible exceeds small things like door actuators etc. that you can buy cheap on line and install yourself. Most extended have a load of loopholes. Same with Rv plans. Good insurance I'm all for but not extended warranty.

But if bought from a reputable company it is a form of insurance, not apples and oranges at all as one poster opined.

There are many life insurance companies offering******products, does not make all of them bad. If you have bought term life insurance and can read this, that money was wasted, even if bought from a reputable company.

So yes, there are some bad, rip off types of extended warranties, and there are many that offer a good product at a fair price.

I just don't understand how so many spend thousands on other insurance products (life, health, home, auto, even home warranties) and single out extended warranties on vehicles as evil.

In the last 50 years I have spent well over $200,000.00 on auto insurance without a chargable accident, no payout of a cent, why is that not a rip off? What about term life insurance? Same with house insurance, some small claims after years of premiums.

I'd pass on all of them. Engines and trans well maintained will hardly ever fail unless tuned or bad fuel injested- either of which voids warranty anyway. With most the deductible exceeds small things like door actuators etc. that you can buy cheap on line and install yourself. Most extended have a load of loopholes. Same with Rv plans. Good insurance I'm all for but not extended warranty.