3rd Party warranty - worth it or not?

[Mracerxx]

I bought an 01 with 90K. They offer me a warranty from Western General for $2700, covers 3 yrs and i took it. At the beginning i went thru the same. Keep it or cancel it? After a while i realized is all about piece of mine. Worth it? For most people probably not, because chances are that the repairs may not account for that much, but for the small percentage that get a major brake down and it happens to be covered, I'm sure it was well worth it. I decided to keep my piece of mine and never looked back.

I'll hassle again when is time to change the car, LOL!!!

[ChrisK]

T-minus 7 days... I have read a ton of threads here, some stating that they love their 3rd party warranty, others say that its not worth it and have had little repairs aside from normal maintenance.

I have no clue what I want to do, but if I don't make a decision between now and the 20th, I'll have already made my choice...

What I would do is go over your warranty with the dealer you bought it from line by line and have them explain exactly what is covered and what is not covered. If the tranny is covered that is a big plus. If the actual window regulators are covered (Not just the motors) that is another big bonus even if it is fairly easy to fix yourself. Might as well let the dealer do it if it is covered. If it covers the cooling system like the plastic radiator expansion tank and water pump that is another big bonus. If it covers the wheel bearings and control arms and ball joints that is another big bonus. These are all things that IMHO will fail sooner than later on an E46. $2700 is a bit much for peace of mind, but if it covers everything you want it to cover for the length of time you need it than it might be worth it.

The first warranty they showed me was supposedly a full bumper to bumper warrant for $3000. I passed and asked if they had anything cheaper which is the one I ended up with at $1700. It seemed to cover everything I wanted so I bought it.


Also, my extended warranty is transferable. So if I sell the car before 69K miles or before 4 years I can tranfer the warranty to the new owner. It may not have much left, but it could be a selling point. Also, if I don't want to tranfer it I can get a refund on the unused portion of the warranty from the original dealership that sold it to me.

[meansartin14]

What I would do is go over your warranty with the dealer you bought it from line by line and have them explain exactly what is covered and what is not covered. If the tranny is covered that is a big plus. If the actual window regulators are covered (Not just the motors) that is another big bonus even if it is fairly easy to fix yourself. Might as well let the dealer do it if it is covered. If it covers the cooling system like the plastic radiator expansion tank and water pump that is another big bonus. If it covers the wheel bearings and control arms and ball joints that is another big bonus. These are all things that IMHO will fail sooner than later on an E46. $2700 is a bit much for peace of mind, but if it covers everything you want it to cover for the length of time you need it than it might be worth it.

The first warranty they showed me was supposedly a full bumper to bumper warrant for $3000. I passed and asked if they had anything cheaper which is the one I ended up with at $1700. It seemed to cover everything I wanted so I bought it.

First off, this 49mo/49,000 mile comprehensive warranty cost me $3409. Keep in mind this is their absolute best tier of coverage and my vehicle is a 2001 and had 77,800 miles on it when I applied.

I have talked with a regular customer service rep and an adjuster for Continental Warranty. Each had somewhat different answers...

Customer service rep said:
Process: I go to a repair facility of my choosing (including dealerships), have the mechanic verify that a part has failed or is not performing as originally intended, give the mechanic my card and have them call Continental for payment in-full
Replacement parts: Whatever the repair facility selects for replacement will be paid for and used for the repair
Labor cost: Continental will pay the "stated, retail labor rate" at the repair facility I select, regardless of price (even if it's a dealership with their expensive hourly rates) for the number of hours that it takes to complete a repair according to some AllData/Chilton/Haynes database (e.g. if a trans replacement is supposed to take 8 hours, they will pay for 8 hours of labor only; anything extra comes out of my pocket)

Claims Adjuster said:
Process: same as customer service rep
Replacement parts: Most often, the repair facility determines the part to be used as replacement; in cases of significant failures (engine, transmission, etc) used and/or rebuilt parts may be selected for replacement, unless I am willing to pay the difference between the cost of the used/rebuilt part and the new part
Labor costs: same as customer service rep

As far as what's covered, we're talking basically everything: convertible top and parts, electrical, transmission, differential, suspension, engine, etc. I've read through what they cover a few times and there are no parts that come to mind off the top of my head that are NOT covered. Perhaps I'll post the exact verbage this evening.

Perhaps I could downgrade my coverage? I'm worried that I'll jinx myself if I cancel the warranty outright (i.e. all of a sudden things will start going wrong and I'll be out a lot of money). But so far, the 4500 miles we've put on her since ownership (this includes a drive from Florida to Maryland) have been excellent; this appears to be a solid car. I have compiled almost all of the maintenance/repair data available on the vehicle and as of yet it seems as though it was well maintained. I am still ironing out exactly what problems were encountered during its lifetime based on the printed maintenance histories from 3 different dealerships, but none of it seems too ridiculous. I also feel that since we'll put relatively few miles on the vehicle (less than 20 miles, round trip, per workday) a warranty may be a bit overkill. But the problem is, no one really knows...

[ChrisK]

I also feel that since we'll put relatively few miles on the vehicle (less than 20 miles, round trip, per workday) a warranty may be a bit overkill. But the problem is, no one really knows...

That is the problem. With a BMW, no one really knows Personally, if you plan on keeping this car for a while I'd still hold on to the warranty. When you start nearing 100K miles on any car things are going to start acting up. It could be small stuff, but it could also be major stuff. You may not get all your money back in terms of warranty repair, but only you can determine who much peace of mind cost. If you are strong willed enough, maybe you can cancel the warranty and put all that money into a special BMW car repair fund. At least you'll have around $3K for future repairs that may or may not happen.

[TizSuperrQ]

I know you posted the question on here, but for every good reason to get a the warranty there's a another reason not to get it, so basically its really the confidence you have in the car.

this is my second warranty less bmw and i think i will just keep buying bmw's from 50k - 60k run them up to 80k - 90k and then sell. How long do u plan on keeping th car?

[meansartin14]

I know you posted the question on here, but for every good reason to get a the warranty there's a another reason not to get it, so basically its really the confidence you have in the car.

this is my second warranty less bmw and i think i will just keep buying bmw's from 50k - 60k run them up to 80k - 90k and then sell. How long do u plan on keeping th car?

Probably for 4 years or so... I figure about 120k miles...

[meansartin14]

3 days left to cancel and get a full refund... Here's a quote I just got from www.carwarranty.com (Warranty Direct):

48mo/60K miles - $1615 ($0 ded); $1415 ($50 ded)
48mo/80K miles - $1665 ($0 ded); $1515 ($50 ded)
60mo/80K miles - $1715 ($0 ded); $1565 ($50 ded)
60mo/100K miles - $1765 ($0 ded); $1615 ($50 ded)

Of course, their coverages are slightly different in that they only cover engine, transmission and drive axle failures:

Engine -
(a) The following lubricated internal parts: pistons, pins & rings, connecting rods & bearings; crankshaft & main bearings; camshaft, followers & cam bearings; push rods, valves, springs, replaceable guides, seats & lifters; rocker arms, shafts & bushings; timing gear, chain, tensioners & retainers; eccentric shaft; oil pump.
(b) Timing belt; serpentine belt; Water pump: Impeller shaft, bearings, bushings & housing; intake & exhaust manifolds; engine mounts & cushions; engine torque strut; harmonic balancer; flywheel (flexplate) & flywheel ring gear; mechanical fuel pump; dipstick & tube; all pulleys.
(c) All lubricated internal parts of the vehicle manufacturer installed turbocharger or supercharger.
(d) Engine head(s); engine block; cylinder barrels; timing cover; valve cover(s); oil pan; dipstick & tube.
Transmission -
(a) All lubricated internal parts contained within the case(s).
(b) Computer modules & solenoids; filler tube & dipstick; vacuum modulator; internal linkage.
(c) Transmission case, transfer case & torque converter case.
Drive Axle -
(a) All lubricated internal parts contained within the housing(s).
(b) Axle shafts; constant velocity joints (CV); universal joints; drive shafts; locking hubs; locking rings; supports, retainer & bearings.
(c) Differential housing, transaxle housing & final drive housing.

But, the above would give me coverage for the trans (the main reason I am even considering a warranty) and cost about half what the other one cost me.

The difference is that all that other stuff is not covered (air conditioning system, brake system, cooling system, electrical system, front suspension, fuel system, steering, and convertible top)

Any thoughts?

[aarons6]

I am very glad i got mine.. i bought my 99 323i with 92,000 miles on it.
drove it for a few months and at 98 something the radiator started leaking, paid for by warranty.. the next week the belt tensioner pully came off.. paid for by warranty.. 2 months later, gas gauge stopped working, paid for by warranty.. now the airbag light turned on, have an apt for the dealer to get that fixed.. also it says my tailight is burned out when its not, they are going to check that and im sure it will be fixed too.

[nathancarter]

The Warranty Direct one doesn't look very good, even for half the price. The only common-failure things I noticed in there are the transmission and the water pump. The rest of the engine, if well maintained, should last a nice long time.

Other high-failure stuff that appears to be NOT covered:
Window regulators ($400+ each for dealer repair),
Thermostat & coolant expansion tank
Front suspension (control arms, bushings)
Engine electrical sensors (camshaft position sensors, O2 sensors, etc)
Spark plug ignition coils
A/C Blower motor resistor

I've never owned a convertible, but if I did, I think I'd want to have a warranty on it too...

[Dirty B]

I bought a warranty from Continental when I first bought my 02 325ci. I canceled it a month an a half later. They don't cover much of what goes bad on a BMW and they only cover $80 per hour on labor so you can't take it to the dealership. Sucks, but you have 30 days to cancel the warranty w/out being charged anything.

[meansartin14]

I bought a warranty from Continental when I first bought my 02 325ci. I canceled it a month an a half later. They don't cover much of what goes bad on a BMW and they only cover $80 per hour on labor so you can't take it to the dealership. Sucks, but you have 30 days to cancel the warranty w/out being charged anything.

The bolded statement in your quote I have asked to both a claims adjuster for Continental and a customer service representative. BOTH of them claim that they will pay the "posted retail labor rate at the repair facility". As far as number of hours, they cover the number of hours that some database tells them it will take to complete the repair.

With regards to the parts covered, they will "replace the part with what BMW selects for replacement". Basically any big ticket item is where they will try to save money and use a "rebuilt" or used part; all the smaller stuff (window regulators, control arms) will be whatever BMW selects.

Perhaps they have changed their standards and/or I have a different plan than you did?

[itsmepoli]

so, did you finally brought the warranty? or found something other alternative? Could you please share?

[ponytrekker]

if it helps your decision at all, before i got my bimmer i had 2 high milage mercedes M-class, and those have to be some of the most unreliable cars made. the most expensive repair i had to make was to the aux cooling fan on the ml320, and it cost $1400 and would not have been covered under your warranty. i dont think i even spend $3400 total for all the repairs i had to do.

My thoughts exactly. If you have the money, or a credit card w/o a balance it's better to roll the dice that you may have to pay 2 grand someday rather than handing 2 grand right over.

[LHB]

A simiilar thing to consider is if you fold the warranty into the price of the car, you're going to be paying interest on it. If you have $3k in credit card balances, you could use the $3k to pay down the balances, avoid 10%-20% interest on the balances you no longer have, and boost your credit score. Insurance companies wouldn't issue polciies if they didn't make a profit by doing so.

Also, consider the cost of the deductible. 4 visits adds $400 to the price of the warranty. I'm currently driving with no warranty, and building up a sinking fund to cover maintenance, and hoping nothing catastrophic happens, just like most businesses. I think BMW extended warranties tend to be overpriced.

[shaq323436]

I'm interested in the coverage and all the other stuff like
air conditioning system, brake system, cooling system, electrical system, front suspension, fuel system, steering, and convertible top

I need a coverage plan like that

[jclausen]

Warrantys don't cover the initial diagnosis, then if they approve the repair they my not pay for all the dx time that was needed.. they use national based pricing. A standard pricing system, so if the shop has the part at a certain price and it's higher than warranty co price the customer would pay the difference. Look in the exclusion area of the contract for what is not covered. Some times the company wants to supply there own or a used part. wear and tear parts could be cover like control arm bushings but it would have to be a stated in the warranty. This is how a repair would work. You come into the shop, you pay them to diagnose the problem,after the dx the shop would call the warranty company and they would ask a bunch of a questions, they would deny or apporove the claim. If the claim is approved, They willl start asking about dx time, repair times, part costs, what parts they are paying for, what your deduct is and give the service advisor a approval number. Again you will pay more then your deduct, because of parts, labor and dx cost differences. If the claim is more than a thousand dollars the is a good they will send an inspector out to look at the job. your rolling the dice is the warranty company going to cover your repairs, maybe. Or do just start your own car repair fund, putting money aside for repairs. For low mileage drivers it is a waste of money. Certainly the trans could be a worry, but the coolant system is going to come undone at some point, that's a guarantee. Your valve cover , oil filter stand and oil pan gasket will leak for sure so hopefully the warranty will cover those repairs

[jc1kz]

CANCEL IT QUICK!!! "Just looking for some input or thoughts on this. I have until 20-Aug-2007 to cancel for a full refund. Any advice, input, comments or suggestions would be much appreciated! Thanks in advance!!!"

Here is my third party warranty coverage.... I bought a two year old Toyota 4runner that had "certified 100000 mile coverage" (this is certified by the Toyota mechanics) I did the regular maintenance and oil changes, nine months into the purchase, something goes wrong that the truck looses all the belts and rolls to a stop. so have it towed to the Toyota dealer where I bought it, they look at it and said that the cam shaft bolts had come loose and cam shaft was warped, okay I say it is a certified truck fix it...they contact the certified warranty company (which is sold by Toyota, but not Toyota it is from the Gulf States Inc LLC) and the warranty coverage was denied...they said I didn't service the truck properly???? I had to collect all my receipts and get an attorney and finally sue, 2 yrs later I got a new engine for my 4runner, all storage fees/attorney fees and was compensated for a newer truck that I had to purchase due to mine being broke down....Moral of the story is, do you due diligence on any type of extended warranty, and you'll see most are not worth the paper they are written on....they are full of loop holes and double talk that you have to sue to get anything out of them...just my two cents.....