Costco Extended Warranty Coverage?
06-24-2013, 11:06 AM
#16
Instructor
Join Date: Dec 2012
Location: Scottsdale, AZ
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I recommend asking your dealer who they use. They have the experience with dealing with these people and should know who pays the claims and who gives them a hassle.
06-24-2013, 12:31 PM
#17
Drifting
OP, do you recall if Costco had a powertrain only policy? My CPO is up next year and I'm really struggling with the true value of getting another extended warranty. My '08 C2S has had 2 TPMS sensors covered by the car's warranty to date after 59K+ miles. As a DIYer the only value I can see in an extended warranty is the safety net of covering something catastrophic/major such as the powertrain... and only if the price was reasonable. I'd rather apply the $$ towards preventative maintenance then post failure issues... sometimes it's too late or detrimental towards the car to service it after the fact. For example, the WP, water pump, is known to be a failure point and Excellence Mag recommends replacement at the 40K-50K mark. If the WP does fail and the impeller breaks up... bits of it could potentially lodge itself within the coolant system and/or worst the engine block itself. Overtime this will create hot spots within the engine walls and lead towards a cracked engine block. Much better to pre-emptively replace the WP(~$250) then risk the engine($20K)... unfortunately these policies only address these ailments after the fact. Kinda like our healthcare system.
BTW, go with the monthly payment plan... I normally pay cash for most everything to avoid finance charges. This lifelong policy bite me a dozen years ago when I secured an extended warranty policy on my prior M3. The reputable warranty company recommended by my Indy mech shop and many friends went belly up after only 2 months into the policy. After 10 yrs we rec'd a refund check for $200 out of the original $2,200 when the courts settle their bankruptcy claim.
BTW, go with the monthly payment plan... I normally pay cash for most everything to avoid finance charges. This lifelong policy bite me a dozen years ago when I secured an extended warranty policy on my prior M3. The reputable warranty company recommended by my Indy mech shop and many friends went belly up after only 2 months into the policy. After 10 yrs we rec'd a refund check for $200 out of the original $2,200 when the courts settle their bankruptcy claim.
06-24-2013, 06:02 PM
#18
Our cars are expensive to work on so a quality warranty will be expensive. Pay for a cheap one and I bet you end up short changed when you need it.
You have the most leverage before you purchase a warranty so get in writing any item you think is critical if the contract language is not clear. I had my warranty company put in writing that an IMS bearing failure would be covered because I told them I would not purchase without that clarity.
After you sign on the dotted line they become lawyers.
You have the most leverage before you purchase a warranty so get in writing any item you think is critical if the contract language is not clear. I had my warranty company put in writing that an IMS bearing failure would be covered because I told them I would not purchase without that clarity.
After you sign on the dotted line they become lawyers.
06-25-2013, 09:02 AM
#21
Rennlist Member
It is one PITA topic for me as well. Called my mechanic for advice and he told m he stopped accepting those 'extended' policies and works for cash only. He only works with selected 'track damage' insurances on race cars as those do pay with no issues. that pretty much leaves me dealer service as an only option in case of a failure and in this case you realistically will be better with a policy dealer himself sells, but I am not sure if I even want to give car back to dealer to replace one faulty motor with another one with same fault but for my own money. would be better to pay more but to fix it properly. not sure what to decide.
06-25-2013, 03:09 PM
#22
My local dealer and Indy both still take payment from aftermarket warranty companies.
I have a Costco policy and have not had to file a claim on my 997.2.
My wife has it in her MZB and it's been pain free. The dealer is impressed by the policy and noted that they r less hassle than the Mercury policies that they sell.
I have a Costco policy and have not had to file a claim on my 997.2.
My wife has it in her MZB and it's been pain free. The dealer is impressed by the policy and noted that they r less hassle than the Mercury policies that they sell.
Last edited by G356; 06-26-2013 at 01:42 AM.
06-25-2013, 06:31 PM
#23
Intermediate
I also have the Costco warranty. No claims yet, so no real experience. When I contacted my local dealer they did not have an extended warranty coverage provider (2 years ago now). Might have been just for my year only, don't recall now. I too am hopeful that any IMS related claims would be covered. My understanding was that as it wasn't an exclusionary policy, if it didn't say 'WE DO NOT COVER THE IMS' or similar such specific wording this would be covered. Hopefully I'm not too naïve.
05 997 C2
79 924 na
05 997 C2
79 924 na
06-25-2013, 07:36 PM
#24
Never pay for your extended warranty up front in one lump sum. I purchased one (pushed by CarFax at the time) and opted to pay on installments. Sure enough there was a minor issue requiring a trip to the dealer. It was a simple parking brake switch that the dealer charged one hour of time to repair. The dealer service manager came out afterwards to tell me that the warranty company denied the claim for even this simple repair. I stopped payments and they canceled the contract. Possession is 9/10's the law...
The fine print of this contract: basically all maintenace had to be done on time. All of it.
And it had to be done by an approved mechanic, I forget what the standard was. NOTHING could be DIY, not even the simple air filter swap, and especially not the oil changes or they were free to deny engine related claims. This meant that any likely savings from approved warranty claims would be nullified by the higher cost to maintain. Also, normal wear and tare items were absolutely not covered. A factor needing consideration because I calculated that the costs of these, even at Porsche indy shop rates, would be considerable if I were to keep the car beyond the four year coverage period. At dealer rates, their estimate was nearly $20K in major maintenance. Obviously I opted for an independent shop and skipped the convenient language of the warranty contract.
The fine print of this contract: basically all maintenace had to be done on time. All of it.
And it had to be done by an approved mechanic, I forget what the standard was. NOTHING could be DIY, not even the simple air filter swap, and especially not the oil changes or they were free to deny engine related claims. This meant that any likely savings from approved warranty claims would be nullified by the higher cost to maintain. Also, normal wear and tare items were absolutely not covered. A factor needing consideration because I calculated that the costs of these, even at Porsche indy shop rates, would be considerable if I were to keep the car beyond the four year coverage period. At dealer rates, their estimate was nearly $20K in major maintenance. Obviously I opted for an independent shop and skipped the convenient language of the warranty contract.
06-25-2013, 07:42 PM
#25
Racer
I'm not sure I'd go with a Costco-endorsed warranty on a specialty car...for a Toyota, Nissan, or Honda...sure...but for a luxury vehicle where "reasonable repair costs" are a dream...you may just wind up fighting over every submitted claim re: exclusions previously stated.
I'd talk to your local dealer...I seem to recall others posting that they got extended warranties through their dealers at or less than the price quoted by Costco...
Just my 2 cents.
I'd talk to your local dealer...I seem to recall others posting that they got extended warranties through their dealers at or less than the price quoted by Costco...
Just my 2 cents.
06-25-2013, 08:00 PM
#26
I'd go with the contract terms over any dealer recommendation. Costco covered every item so far on our Mercedes and had no qualms with our local dealer rates.
Last edited by G356; 06-26-2013 at 01:42 AM.
07-05-2013, 03:21 AM
#27
Intermediate
Costco Warranty Specifics...anecdotal
All:
I found this post on 6speedonline's forum. It gives a great idea of what Costco's warranty covers. Of course, the key assumption is everything written below applies to any warranty...I have no reason to doubt the validity.
Click the link below, and go to post #14 by username:daberlin
http://www.6speedonline.com/forums/9...ml#post3786940
I found this post on 6speedonline's forum. It gives a great idea of what Costco's warranty covers. Of course, the key assumption is everything written below applies to any warranty...I have no reason to doubt the validity.
Click the link below, and go to post #14 by username:daberlin
http://www.6speedonline.com/forums/9...ml#post3786940
For others, here's the breakdown for a TLDR (too long didn't read):
Here's the post:
From 6speedonline user daberlin -
Quote:
Here was the weblink I used to do some research on my own:
http://www.costcoauto.com/vpp/about.aspx
1. Since I am California, I was re-directed on the phone to Costco/Affinity Auto Coverage when I called Costco's 1800 number. You are redirected if you live in Cali, KY, and MD. Otherwise your coverage will be with Century Warranty Services. They did ask for my Costco membership number in order to generate a quote.
2. I was told their coverage was an 'exclusive policy', meaning they list only the things that are NOT covered vice a laundry list of items that are. So, what I was told was not covered was the following:
a) routine maintenance items such as oil changes, brake pads and rotors.
b) accident damage that a car insurance policy would cover, glass, etc.
c) cosmetic items such as light bulbs.
We did discuss a series of 'what if's', and I must say I was impressed.
1. I asked about head/valve gasket failure, water pump failures, seals, window motors, electronic components, etc. I was told they were all FULLY covered including secondary damage to the engine (I gave the IMS as an example).
2. I was told wear and tear was also covered. Meaning, if the water pump shows signs of leaking or the reservoir shows signs of leaking, it is fully covered and does not require failure of the part for replacement.
3. I was told that the warranty is FULLY transferrable if the car was sold and can be transferred to someone who is not a costco member. Additionally, I was told the warranty is pro rated upon termination. So for example if the car was written off in an accident, you will get refunded the remaining portion of the warranty.
4. I was told that the coverage is to any repair shop of our choice, including Porsche dealers.
5. I was told the policy includes both roadside assistance and rental car coverage.
So here was my quote for my 2009 Carrera C2 (also with 10% down and 18 months 0% interest):
6 Year/60K FROM THE CURRENT ODOMETER READING (26K)
$6,925 ($100 deductible)
$5,303 ($250 deductible)
$4,207 ($500 deductible)
3 Year/30K FROM THE CURRENT ODOMETER READING (26K)
$4,573 ($100 deductible)
$3,585 ($250 deductible)
$2,918 ($500 deductible)
Just as a data point, I also asked for a quote on my 2010 Audi Q5:
6 Year/60K FROM THE CURRENT ODOMETER READING (24K)
$3,348 ($100 deductible)
$2,740 ($250 deductible)
$2,285 ($500 deductible)
3 Year/30K FROM THE CURRENT ODOMETER READING (24K)
$1,756 ($100 deductible)
$1,546 ($250 deductible)
$1,389 ($500 deductible)
Here's the post:
From 6speedonline user daberlin -
Quote:
Here was the weblink I used to do some research on my own:
http://www.costcoauto.com/vpp/about.aspx
1. Since I am California, I was re-directed on the phone to Costco/Affinity Auto Coverage when I called Costco's 1800 number. You are redirected if you live in Cali, KY, and MD. Otherwise your coverage will be with Century Warranty Services. They did ask for my Costco membership number in order to generate a quote.
2. I was told their coverage was an 'exclusive policy', meaning they list only the things that are NOT covered vice a laundry list of items that are. So, what I was told was not covered was the following:
a) routine maintenance items such as oil changes, brake pads and rotors.
b) accident damage that a car insurance policy would cover, glass, etc.
c) cosmetic items such as light bulbs.
We did discuss a series of 'what if's', and I must say I was impressed.
1. I asked about head/valve gasket failure, water pump failures, seals, window motors, electronic components, etc. I was told they were all FULLY covered including secondary damage to the engine (I gave the IMS as an example).
2. I was told wear and tear was also covered. Meaning, if the water pump shows signs of leaking or the reservoir shows signs of leaking, it is fully covered and does not require failure of the part for replacement.
3. I was told that the warranty is FULLY transferrable if the car was sold and can be transferred to someone who is not a costco member. Additionally, I was told the warranty is pro rated upon termination. So for example if the car was written off in an accident, you will get refunded the remaining portion of the warranty.
4. I was told that the coverage is to any repair shop of our choice, including Porsche dealers.
5. I was told the policy includes both roadside assistance and rental car coverage.
So here was my quote for my 2009 Carrera C2 (also with 10% down and 18 months 0% interest):
6 Year/60K FROM THE CURRENT ODOMETER READING (26K)
$6,925 ($100 deductible)
$5,303 ($250 deductible)
$4,207 ($500 deductible)
3 Year/30K FROM THE CURRENT ODOMETER READING (26K)
$4,573 ($100 deductible)
$3,585 ($250 deductible)
$2,918 ($500 deductible)
Just as a data point, I also asked for a quote on my 2010 Audi Q5:
6 Year/60K FROM THE CURRENT ODOMETER READING (24K)
$3,348 ($100 deductible)
$2,740 ($250 deductible)
$2,285 ($500 deductible)
3 Year/30K FROM THE CURRENT ODOMETER READING (24K)
$1,756 ($100 deductible)
$1,546 ($250 deductible)
$1,389 ($500 deductible)
07-05-2013, 08:29 PM
#28
Rennlist Member
Not bad. What about a 2009 with 33,000 miles. I'm still under CPO until December 2014. Do you think there would be much difference in price? Thanks!
07-05-2013, 10:03 PM
#29
Intermediate
Robo, I'm sure the price changes with year and mileage, but as they cover wear and tear in addition to catastrophic failure, its a good deal if you want peace of mind. Add $50 to that price if you're not a member of Costco.
02-04-2014, 12:19 PM
#30
Burning Brakes
Resurrecting this thread because I called Costco's Vehicle Protection Plan today and got the following information:
1. Back in October/November they decided to discontinuing offering new coverage for premium European brands because the rates had gone up significantly.
2. The coverage plans are currently under review with a view to bringing those brands back in, and they expect to have more information in early March (says February on the website but since it is now February and I just called, March seems like a safer bet.)
So... if you are shopping for a warranty now and Costco isn't an option, what would you choose?
1. Back in October/November they decided to discontinuing offering new coverage for premium European brands because the rates had gone up significantly.
2. The coverage plans are currently under review with a view to bringing those brands back in, and they expect to have more information in early March (says February on the website but since it is now February and I just called, March seems like a safer bet.)
So... if you are shopping for a warranty now and Costco isn't an option, what would you choose?