: Purchased an extended warranty today

Robert A
10-29-2004, 11:34 AM
I bought an extended "service contract" from WarrantyDirect today.

For those interested in the details, it's a California licensed company, 5 years and 50,000 miles of additional coverage (I have 36k/miles now). It's an "exclusionary" policy, zero deductible, and costs a bit under $1,900. Factory warranty expires on Sunday 10/31.

I think I did good.

10-29-2004, 11:54 AM
Who was it through? I'm in the market for one right now.

Robert A
10-29-2004, 12:05 PM

BUT, I realized that the mileage coverage is not 50k miles from now, it's 50k miles total on the odometer. So I'm going to have to increase my coverage.
Who was it through? I'm in the market for one right now.

Mr Hyde
10-29-2004, 12:22 PM
Be very careful of independant warranty companies like this. I know many people who got totally screwed buying an independant's policy, and I was almost one of them.

Just a year or so ago, Warranty Gold which was supposed to be a well established, reputable company went under. They just ended up paying out more than they collected, and just went bankrupt. That left alot of angry people with useless warranty contracts in their hands that they were out thousands of dollars for.

Just a word of caution.

You know you can also get your warranty through BMW for up to 100k, and with them at least, I wouldnt have any concerns about them not being around if you ever needed to file a claim years from now. Id price it through them also.

10-29-2004, 12:27 PM
Thanks for the info. Now I have to decide whether I'll need $3600 in repairs over the next few years...

10-29-2004, 01:09 PM
Find out the rating of thier insurance underwriter. That will provide a clue as to their ability to pay a claim.

The terms and conditions ideally would have a cut through provision to the underwriter that way if the TPA goes under you can file a claim directly with the insurance company.

Read the Terms and Conditions on any extended warranty BEFORE you purchase.

I used to work in the industry and their are many many responsible and upstanding companies that hold reserves properly and run the business properly.

You get in trouble when a TPA starts playing games with reserves or palying games with their underwriters.