Avoid extended warranties

[desertsoldier22]

During a holiday trip to Michigan my car started experiencing excessive vibration coming from the rear of the car. After searching through the various Boxster forums I determined I had a motor mount issue. I removed my front motor mount and the entire bushing fell out (more like disintegrated). Not having enough time to get a replacement on order I filled it with Urethane and re installed it so I could get home. I also discovered torn center bushings on my lower control arm and bad rear ball joints.

After making it back to Texas I took the car into Eurotech to have them take a look at the car and they discovered bad rear control arms, the motor mount (of course), trailing arms, transmission mounts and bad front shock mount. I called my warranty company EFG and they said all the parts would be covered. Eurotech then called them with the parts and labor estimate, at that time eurotech denied ever reapir due to "wear and tear". The warranty I purchased is supposed to cover eveything except shocks, brakes, clutch and other wearable items. Control arms are not considered wearable and every other part except the strut mount. But they said since the part wore down and didn't completely break it was not covered.

So I asked the rep, it they did break and my engine ended up sitting on the ground, would they cover it then? No...because I let the part break. So I asked them "what exactly is covered?", after a pause he said..."whatever they feel like covering." Because in the contract it says all repairs are up to the company regardless of the covered parts stated.

So essentially I have a $2600 useless piece of paper, because the don't have to live up to any repair if they don't want to. If you are a dealership, please drop these guys they are a fraud. If you are a Porsche owner stay away. They wont even cover replacing a bad IMS bearing or engine damage as a result because the bearing wears...every part wears on a car! What a fraud!

[SiberianDVM]

Is this Enterprise Financial Group?

Cuz, if you look on this page, in the green box, it clearly says "All wear and tear items covered."

MAP Vehicle Service Contracts increase sales leads

Time to either shoot'em or sue'em.

[jwgn777]

I never trusted any of these outside warranty companies. Even cable companies has tricks in their fine print as does health insurance and others. Once these companies collect there money it is in there best interest to try not to pay you and hope you give up contacting them. Read your contact again especially the fine print. And if you think your in the right keep calling and don't give up the fight.

[recycled sixtie]

I have been criticized on this forum for criticizing these kind of warranties. Instead of paying for a warranty, stick about $1-2k in a year into a bank account to allow for repairs. The best kind of "warranty" I have heard of is a former coworker who made a placard and walked outside the transmission shop which supposedly had fixed her transmission. She walked up and down the sidewalk outside the shop till they fixed her car properly. She had b-lls that one.

If you get a warranty read the fine print first. In my next life I am coming back as a lawyer. They have all the angles.In addition many become politicians.

[stealthn]

Lawyer up!

[seventythree]

Most extended warranties are refundable by law. If asked, they must issue a prorated refund for the remainder of the term.

Get your money back.

[recycled sixtie]

Originally Posted by seventythree

Most extended warranties are refundable by law. If asked, they must issue a prorated refund for the remainder of the term.

Get your money back.

Good advice.

[Super 90]

Keep in mind though, that sometimes they are a good thing. Many years ago I bought a Nissan 300ZX Twin Turbo. Because I was not familiar with the car or potential needed repairs, I bought their recommended extended warranty... and it paid for itself within a year. They CAN be a good thing in certain circumstances.

[mikefocke]

If the company stays in business and if they have an honest approach and if you are one of the unlucky ones to have a failure and if your failure is covered, and if the mechanic accepts dealing with the warranty company and if they pay then some small percentage of buyers of that warranty will come out ahead.

But think of all the payments that go on before your car repair bills, bonus to the selling salesperson, bonus to the dealer's sales manager, the dealership owner, the management of the insurance company, the administrative fees, the lawyers, accountants, profit for the stockholders, etc. That is why you get on average 30% back of what you pay. They aren't in business to lose money. And any deal that seems too good to be true, is.

Like a casino...lots of publicity for the winners but most players are losers. Except the casino odds are usually 3x better.

[djantlive]

hope this repair didn't cost you too much. nice lesson learned.

you can file a report with BBB and perhaps any agency that controls the insurance company. this may force them to comply.

in this case, it is a bit of a wash....

it's best to share these types of stories on the forum, yelp or where ever. this way, we can all learn from it.

[jwgn777]

I agree that the manufacturer extended warranty is your best bet. I purchase a used 2006 Dodge Magnum with 11,000 miles and as a safety net I purchase their extended warranty. Now the vehicle has 70,000 and at the end of the policy I used the coverage once. The cost of the repairs equally the cost of the extended warranty. It basically save me from doing the repairs myself. LOL