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Extended Warranties - Are they worth it?

I will admit, every time that I am offered an extended warranty, I always wonder if I should buy it.

Well, it is only for a fleeting second that I wonder.

I do not ever recall having purchased an extended warranty for anything except for the one time that I returned my second water heater for my home within less than two years The warranty contract promised to pay for the labor to replace the water heater (should it go out again).

On the subject of extended warranties for your car, I have yet to find one that is as good as we hope for it to be.

Most warranty companies provide coverage for things that usually don’t break and provide no coverage for the things that do break. Or if they have coverage, there are exclusions and exceptions that allow the warranty company to deny coverage.

This past week we had a client’s vehicle in that had died while driving.

No big deal (so we thought), we sent a tow truck and got it in the shop. Our technician diagnosed the car and the client was called. Our client let us know that he had an extended warranty and asked if we would call them for him.

The warranty company asked us to get the repair and maintenance history.  They said that they should cover the repair as long as the timing belt did not break, causing the internal engine damage. They sent out an inspector who agreed that the timing belt was intact and wondered why he had been called out to look at the vehicle, especially since it was here at The Auto Shop. The warranty company knew us and our reputation. Usually inspectors don’t get sent here.

The warranty company stated the next day: that since there was no proof that the timing belt had been replaced at the manufacturers recommended interval of 80,000 miles and the vehicle now has 87,000 miles on the odometer, that the vehicle was not maintained according to the manufacturers recommendations. They had no responsibility for these repairs.

They denied the claim. And they denied it because of a lack of paperwork.

Please bring your car or truck in for an inspection along with your warranty contract so that we can make sure that this does not happen to you.



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