For interest to know what warranty companies are used.  Have come across some dealers using warranty company which I am not sure they really know what they are selling or sometimes giving to their customers.  Some dealers selling warranty that the customer gets a kit and warranty for anywhere from 5 years or 100k or longer.  From doing my research these companies are referred to (product warranty) which are not insured.  Or dealers selling older and higher used cars and offering warranty that has limit of liability.  Lets say for example customer buys a car for $ 6995 with 125k and buys a 5 year or 100k service contract.  Engine needs to replacing 4 years later and has 180k and is worth only $ 900 according to NADA...will customer get limit of liability up to what the contract says? lets say the contract states limit liability for engine is $ 4000. Powertain is $ 3000.  I am very sure the warranty will be denied the full cost of replacing engine.


I suppose - dealer beware or customer beware.


Anyone has good or bad stories to share?

Views: 1696

Replies to This Discussion

I use AUL Service Contracts. Up to 20 year old vehicles. They have an program for "any miles". I use thier Estate program and buy my units to fit. Under 125,000 miles they will cover the majority of a vehicle including seals and gaskets, wear and tear and even have roadside assistance with towing. I have used AUL for 6+ years and they are GREAT.

You can contact Shannon Green 1-504-466-8802 and ask him questions.

I looked at what AUL offers.  As you said they have any year/any mlieage program limited to 12 months /12k.

Also according to their limit of liability section page 10 section Z it says (Aggregate).  The aggregate total of all repairs and benefits paid or payable while this Vehicle Service Contract is in force shall not exceed the lesser or the following aggregate amounts (1) the Vehicle Purchase Price as shown on this Vehicle Service Contract; or (2) Powertrain-$3,000 : Classic $ 4,000; Vintage - $ 5,000; Estate, Wrap Reserve - the NADA retail value of the Covered Vehicle at time of current repair.


Am I misunderstanding their coverage amount? or if a customer that buys a 2004 4x4 SUV with 107k for $ 6400 and buys a 3 year/36,000. 1 year later the engine needs replacing and it cost $ 3000.  1 1/2 year later it needs a transmission and the truck has 160k and is now worth only $ 1200 and the transmission replacement is $ 1800.  how much will they pay for the claim?  since the aggregate amount is $ 4000.


or if I bought lets say a 2008 BMW with 70k and bought a Vintage warranty and the engine and transmission has to be replaced and it cost $ 7000 but the program has a limit of liability(aggregate) of $ 5000.  am I to pay $ 2000?


Many warranties are great...customers has to be made aware of what they are getting.


I am not endorsing any particular warranty company...just simply trying to see what experiences any of us in this business have with selling these things

For many reasons during our length of service with AUL we haven't had a real issue with limits of liability. There have been 3 vehicles out of 1800 that AUL has stopped coverage after excessive repairs. We always use the 24/24 Estate program under 125,000 miles which may help keep us from reaching the limits (vehicle miles out). In the 3 instances we were warned of maximum coverage being approached prior to the "final" repair. Our recon program and care to aquire mechanically sound vehicles helps reduce the exposure. We have always made our customers aware they were approaching maximum coverage and offered internal solutions (trade, addtl warr, repair loans in the future). AUL has always gone above and beyond in assisting us with our customers. AUL pays diagnostic time and pays for fluids, silicones ect for a coverered repair. I have used other providers in the past and AUL has exceeded, in my experience, all of them.

Contact Shannon Green for a more detailed explaination 1-504-466-8802.

Guardian Warranty Company is who we use. We've never had an issue with them. They've been the best so far.

Wynns warranties are the best but if you have cause, part #s and hours to fix ready when you call in a claim and make the clerks job easy they are more likely to approve and fund fast. You must have people with skills and knowlede.

Sad but True!

In looking at warranty companies.  Wynns and Penn seems to have most complaints.  I know that customers in many cases are not careful in reading the warranties or some dealers does not explain the coverages properly.  But still lots of complaints.  Some dealers will say they are happy with the level of service from certain companies until they start getting lots of complains from their customers.


Some vendors are out there selling product warranties, which are worth less than the paper that is written on.




© 2017   Created by Greg Goebel.   Powered by

Badges  |  Report an Issue  |  Terms of Service