Is an extended warranty worth it?

[Skant]

My credit union sold me an extended warranty plan for my vette. The plan is through a place called Royal Insurance Company of America. It's their 'supreme plan' with bumper to bumper coverage for 4 years or 48,000 miles which cost $2,365.

Recently, I've heard that these types of plans may be of no use.

It's not quite been 30 days yet. I can cancel it without loss.

So now I'm wondering... is this worth it? Carefully reading through their contract, it just doesn't feel so iron clad. Theres a lot of stuff you have to do. And little exclusions and ways that it looks like they could weasel out of it.

It doesn't cover things like replacing the clutch or any other 'maintenance item'. Only parts of the vette that wouldn't normally break.

So I guess it's a matter of... would I spend more than $2,365 during four years on repairs that this would cover?

And would this actually end up covering anything anyway? I hear that some of these places just weasel out of everything.

Plus I do want to do some things like put a corsa exhaust on the car. Which they seem to list as an example of things that you can do that will void the warranty if you change a covered part for a modified part. Which is a little odd since they list the exhaust system as a non-covered maintenance item elsewhere.

Thoughts? Experiences?

At this moment, I'm leaning in the direction of cancelling the plan and keeping the money in my pocket instead.

- Skant

 

[Lucy64]

Peace of mind.............

It is a peace of mind thing in my opinion. I would do some research into the company that is backing the coverage. If you get good info then it is up to you to decide how much the peace of mind is worth to you. I bought a used BMW M3 last year and went ahead and got the extended coverage. On a M3, like a Vette, anything can run into big bucks. I figure 2K is a small amout to invest just incase. If you have a problem with something electrical or a major mechanical problem it will easily run that much. The call is yours, but do check out the company before your 30 days is up. Good luck....Kerry

 

[WhalePirot]

I agree with Lucy64, re: repair costs. I would hope your credit union was not ripping you off, but I'd sure get some positive referrals, or cancel. There were news items about aftermarket warranty companies folding up. Extended warranties are a high profit item. Ask any dealer. The local Chevy dealer sold me a policy on my Vette that was worse than the factory plan (transferred for $25)! I got that money back, pals.

A big part, too, is how used is the car? How much will you drive it? Expect ANY modifications to be used as a basis to deny coverage.

What recourse do you have if they deny a claim?
Do any shops take direct payment from this outfit?
Are other warranties available; maybe from your insurer or GM?

My last BMW is a certified car and the warrranty has been well worth it, but BMW is behind the unmodified car, making denials nil.

You're paying about $50/month for something you need to define more clearly.