Dave!

Looks good, but give a real thorough search through the entire contract and see if there are any stipulations. When I was talking with an agent about this he saw that and thought it was final, but looked around some more in the contract and found that the payout was limited to the ACV of the vehicle OR certain set values (in my case it was $2000 for transmission, $3000 for engine, and $7500 per visit).

Everything I've seen says that these contracts are designed with loopholes in mind, so be thorough. And if you find it's all legit I'd love for you to PM me their contact information as I'm still looking too.

roadsession

I spoke to another SA at the dealer.
He confirmed my worst fears. These after market warranties don't cover things like RMS. RMS repair is $1,500.

He says they find all sorts of loopholes to not pay :-(

ivangene

if the warrenty gives you a HUGE list of things covered - RUN !!

if it gives you a list of items NOT covered - YIPPY ! as most companies dont even know what an IMS shaft is

htny

I don't have an aftermarket warranty, so I can't speak to the quality of the warranty or the company, but here's a piece of general advice: NEGOTIATE - the margins on things like aftermarket warranties tend to be very large, you should negotiate the price like any other line item on a purchase order.

And for that type of incremental cost get full coverage and make sure it's exclusionary coverage as others have mentioned. Our cars are only now approaching the age when A/Cs and other major accessories start going.

smackboy1

That's not necessarily true. I have Warranty Direct and they paid to replace all kinds of leaks and seals e.g. RMS, IMS, valve cover bolts, coolant expansion tank. Around $4-5,000 in total repairs. They are insurance companies so the SA has to know how to describe the problem with the right "magic words" so the adjuster can authorize the repair. If he makes it sound like a wear and tear item - denied. If it sounds like something failed - approved. It's like getting HMO approval for a test or procedure. Sometimes SA's don't like dealing with aftermarket warranty companies (especially those not sold by their dealer) because they have to get a diagnosis and then call the adjuster and answer questions to get approval etc. - more work for them. Also, if it's a big repair they will send an adjuster to examine the car to make sure the car has not been modded or used for a non-covered purpose e.g. track, off road.

BTW you mentioned Fidelity Warranty. I have Fidelity on my wife's MINI and my 996 coupe. 3 different Porsche dealers in my area sell and accept Fidelity as does my local BMW/MINI dealer. It's backed by a company called JM&A. IIRC I checked before I purchased and AM Best rated the insurance company financial stability "Excellent". I have not had to use the warranty yet, but based on my research I would say they are not some fly by night Mickey Mouse operation. When I bought my warranty I specifically asked the SA to confirm it covered everything from leaking seals to engine replacement.

Dave!

Some Warranties cover only breakdown repairs, some do wear & tear as well. And you can bet the ones that only do breakdown will love to count everything off as "wear and tear".

Still, I have a feeling many of us are looking for breakdown warranties that cover internal engine parts + timing chain.

Palmbeacher

On a large repair such as an engine or trans replacement, I would get the service advisor, shop foreman, and service manager together and make it clear to all of them that the only way the work can proceed is if the claim is accepted. It's likely that at least one of them is on a bonus program linked to billable shop hours and will take landing a $15K job seriously.

Even the plain-jane powertrain warranties cover all the lubricated parts in the drivetrain. Engine/transmission/differential bearings, gears, chains, etc. are all covered. These are never considered "wear and tear" items. Those would be belts, hoses, brake pads/rotors and so forth. Typically though the cost of a warranty that covers more than just the powertrain isn't that much more money. Starters, alternators, A/C compressor, fuel injection, the ECU, all these can lead to some major money in repairs.

"Exclusionary" warranties (which cover everything unless specifically excluded on a list) are the best, but many companies only offer them to dovetail with the expiration of the original factory warranty. They're harder to find and more expensive on a car where the OEM warranty has expired. "Named Component" warranties cover everything on a list, and nothing that isn't on that list. Some are more comprehensive than others, so you really need to read them carefully, and never assume anything is covered unless you see it specifically mentioned. Even those warranties are well worth it if you intend keeping the car for a long time, or put on a lot of miles, at least from my experience with German cars of several brands.

Lastly, the terms of warranties through the same underwriter vary from state to state depending on their insurance regulations. California and Florida are the toughest (or at least, the most beaurocratically encumbered).