FYI: Ultimate Warranty Corp (& Re-Insurer) in Receivership
01-15-2008, 04:00 PM
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FYI: Ultimate Warranty Corp (& Re-Insurer) in Receivership
Hi Folks,
When I purchased my '96 993 C2 two years ago, I also purchased an extended warranty from Ultimate Warranty Corp (http://www.uwc21.com). I did this after checking with a couple local independent Porsche shops in Seattle, two of whom reported positive experiences with Ultimate. I didn't expect it to be like a new car warranty, but I did expect it to defray the cost of any significant failures - basically an insurance policy.
I took my car in this week to have a leaky steering rack replaced - about a $1500 job including the German-rebuilt ZF rack. Ultimate was going to cover about $851 of it, so a significant chunk. But, after the service writer let me know that, unusually, Ultimate wasn't going to pay them directly but would reimburse me for the $ (contrary to the policy), I called to investigate. Turns out the whole company has gone belly-up, and their liabilities were so great that they've taken the insurance company insuring those policies down with them too. They're making zero guarantees that any claims will be paid. A few web searches turned up a bunch of sad stories, all of which would suggest I will get zilch:
http://www.startribune.com/business/12387251.html
http://www.insurancejournal.com/news...1/16/85077.htm
I'll definitely be contacting a lawyer, but it looks like it may be $3,000 totally down the drain. The interesting thing is, no one's contacted me about this as a policy holder. So, if anyone else is out there with one of these policies, I wanted to post something to let you know. Or if anyone does a search for extended warranty on this board...
Cheers,
-Robert
When I purchased my '96 993 C2 two years ago, I also purchased an extended warranty from Ultimate Warranty Corp (http://www.uwc21.com). I did this after checking with a couple local independent Porsche shops in Seattle, two of whom reported positive experiences with Ultimate. I didn't expect it to be like a new car warranty, but I did expect it to defray the cost of any significant failures - basically an insurance policy.
I took my car in this week to have a leaky steering rack replaced - about a $1500 job including the German-rebuilt ZF rack. Ultimate was going to cover about $851 of it, so a significant chunk. But, after the service writer let me know that, unusually, Ultimate wasn't going to pay them directly but would reimburse me for the $ (contrary to the policy), I called to investigate. Turns out the whole company has gone belly-up, and their liabilities were so great that they've taken the insurance company insuring those policies down with them too. They're making zero guarantees that any claims will be paid. A few web searches turned up a bunch of sad stories, all of which would suggest I will get zilch:
http://www.startribune.com/business/12387251.html
http://www.insurancejournal.com/news...1/16/85077.htm
I'll definitely be contacting a lawyer, but it looks like it may be $3,000 totally down the drain. The interesting thing is, no one's contacted me about this as a policy holder. So, if anyone else is out there with one of these policies, I wanted to post something to let you know. Or if anyone does a search for extended warranty on this board...
Cheers,
-Robert
Last edited by rdurff; 01-15-2008 at 04:01 PM. Reason: Forgot one little bit...
01-15-2008, 04:42 PM
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From the link:
I'm no insurance expert, so I'm not sure how you spot a "risk retention group" vs a legitimate insurance company. Is there any way to evaluate these sorts of companies other than internet testimonials?
Capital Assurance Risk Retention Group ... Risk retention groups are not covered by the South Carolina Property and Casualty Insurance Guaranty Association or any similar associations in other states. Therefore, if a risk retention group becomes insolvent, its insureds cannot rely on the safety net provided by these guaranty associations.
01-15-2008, 05:26 PM
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Ah, finally something I know about.
Any policy that is issued by a risk retention group needs to have printed on the front page the words (no surprise here): RISK RETENTION GROUP.
Of course, that wouldn't tell most of the public anything.
Insurance company insolvencies (their word for bankruptcy) often end with eventual settlement of claims, though it can take longer. So, make sure you make your claim against the company and follow up on any notices you receive about your status as a claimant. Of course you should register yourself with the SC Insurance Department, which is handling the insolvency.
Sorry for your troubles - when you pay a premium you should get your claims paid.
Any policy that is issued by a risk retention group needs to have printed on the front page the words (no surprise here): RISK RETENTION GROUP.
Of course, that wouldn't tell most of the public anything.
Insurance company insolvencies (their word for bankruptcy) often end with eventual settlement of claims, though it can take longer. So, make sure you make your claim against the company and follow up on any notices you receive about your status as a claimant. Of course you should register yourself with the SC Insurance Department, which is handling the insolvency.
Sorry for your troubles - when you pay a premium you should get your claims paid.
