Warranty DEDUCTIBLE?!

[ItstheHOFF]

Thankfully I purchased an extended warranty with my used 2016 suburban, because my ac just broke. But news to me, there’s deductibles on warranties these days! It’s $100 as opposed to $1500, but still. I bought a warranty so I wouldn’t have to shell out anything if something under warranty breaks. Has this peeved anyone else, or am I the insane one?

 

[wjburken]

Thankfully I purchased an extended warranty with my used 2016 suburban, because my ac just broke. But news to me, there’s deductibles on warranties these days! It’s $100 as opposed to $1500, but still. I bought a warranty so I wouldn’t have to shell out anything if something under warranty breaks. Has this peeved anyone else, or am I the insane one?

Many warranties that I have seen come with a deductible of some sort. Typically that has been spelled out in the information they had me look at.

Had one car come with a GM Certified 3month/3000mile warranty that covered everything but fluids. Got a motor replaced for $70 in oil and coolant.

 

[drakon543]

typical with extended warranties as its not really a warranty its more like automotive repair insurance you pay upfront for and a deductible at the time of the repairs. an original warranty is there for manufacturer defects and other premature failures. an extended warranty is there to cover you in the event of large repairs.

 

[OR VietVet]

I am not a fan of extended warranties but when you have a bumper to bumper new vehicle warranty and emissions warranty, that has no deductible. When you buy, what I call an "Instead Of Warranty" there will be a deductible. You did not say but I bet if you read your paperwork it will say so.

 

[calif phil]

$100 for a major repair. I would be counting my blessings.

 

[Doubeleive]

the $100 deductible is pretty standard for "extended" warranty's, this is why these warranty company's often get a bad reputation because people do not read about what they are purchasing and what it covers and doesn't cover, then when they find out the part is not warrantied they go and complain online when it was always stated right there in black & white.

 

[OR VietVet]

the $100 deductible is pretty standard for "extended" warranty's, this is why these warranty company's often get a bad reputation because people do not read about what they are purchasing and what it covers and doesn't cover, then when they find out the part is not warrantied they go and complain online when it was always stated right there in black & white.

Yet another reason I don't like the extended warranty. Too many people listen to a salesman that says, "It covers everything" or "you don't want to be on a trip without this" or "it will pay for itself if you ever have to use it one time". I ran shops. I had to call in for these coverages. Most times the initial inspection was not covered unless it was a covered item. Then the customer had to make a decision about that before they even knew if an item(s) was covered. Just like any insurance company, their main job is to keep money, not pay it out. Most of those extended warranty companies will fight tooth and nail to keep from covering anything and make you wait for periods of time for their inspector to come look at the problem. The time to either put the rig back together enough to roll out and wait for inspector or get the rig outside of the bay was also on the customer, initially. That is just a sampling of what goes on but, I never once saw an extended warranty without a deductible unless it was ungodly expensive up front.

 

[K2 Kaiju]

$100 for a major repair. I would be counting my blessings.

Except the warranty was probably $2k up front, so more like $2100 for a $1500 repair...

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[wjburken]

Yet another reason I don't like the extended warranty. Too many people listen to a salesman that says, "It covers everything" or "you don't want to be on a trip without this" or "it will pay for itself if you ever have to use it one time". I ran shops. I had to call in for these coverages. Most times the initial inspection was not covered unless it was a covered item. Then the customer had to make a decision about that before they even knew if an item(s) was covered. Just like any insurance company, their main job is to keep money, not pay it out. Most of those extended warranty companies will fight tooth and nail to keep from covering anything and make you wait for periods of time for their inspector to come look at the problem. The time to either put the rig back together enough to roll out and wait for inspector or get the rig outside of the bay was also on the customer, initially. That is just a sampling of what goes on but, I never once saw an extended warranty without a deductible unless it was ungodly expensive up front.

This is what happened when I got a motor replaced in my 1995 Lumina. I took it in thinking I had a sticky lifter and the mechanic at the Chevy dealer said it sounded like piston slap. Told me that I was in the hook for any and all labor if the inspector didn’t find anything. When I asked how certain the mechanic was that he would find a covered issue, he winked and said he would guarantee it. He was right and I got a newer motor. This the only time an extended warranty ever worked out for me.

Another time I had some work done with an extended warranty in effect and the mechanic at that time, at a different dealer, said he had very bad experience with the company I had a warranty from and suggested I go a different direction and look at a different vehicle as he would almost guarantee that the inspector would claim it was not covered do to some obscure clause in the policy.

I refuse to buy them anymore.

 

[OR VietVet]

Unfortunately I saw this scenario time and time and time again. I once ran a shop that wanted to start selling the extended warranties. I told them I was going elsewhere if they did. They chose not to. I originally got in the business after a couple of times my own mother got taken advantage of in a shop. I was not a tech at the time except some backyard work but I knew better than what was said to her and I was not living in the same town. I moved and went to turning wrenches and then worked up to service manager. I cringed every time I was handed an extended warranty.

 

[itsbo1313]

I bought an extended warranty with zero deductible and it covers most maintenance. The $5k cap was the catch.

 

[wjburken]

I bought an extended warranty with zero deductible and it covers most maintenance. The $5k cap was the catch.

Was the $5K cap a total for life of the warranty period or per instance?

 

[itsbo1313]

$5K total. I paid $2600 so when I use it all I will have saved $2400.

 

[itsbo1313]

Bad decision. Too many maintenance items not covered.

 

[OR VietVet]

$5K total. I paid $2600 so when I use it all I will have saved $2400.

So basically your deductible was $2600. That "instead of warranty" company plays the odds and comes out great on the other side. Every now and then I hear of the extended warranty companies covering maintenance but they are few and far between. Extended warranties were sold for breakdowns and repairs, not maintenance. I don't know how tight they are controlled now but way back when the warranty company could collect all these payments for coverage and then close up shop and move to another state under a different name.

 

[WillCO]

It was in the paperwork you signed.

Slightly slimy that the person selling it to you didn't make sure you knew about it, though.

 

[Hrocks]

The only extended warranty I would ever buy on a GM vehicle was the former GMPP warranty. This was basically an extension of the factory warranty BUT, with YOUR CHOICE of having a zero deductible, or a range of deductibles. As one might expect, the smaller the deductible, the higher the cost. If you're planning on keeping your vehicle for a LONG time, it could be very beneficial. I had one on my '10 Tahoe that served me well for about 6/7 years. You could then have also chosen time and mileage limits. (Still have the Tahoe.)

 

[OR VietVet]

The only extended warranty I would ever buy on a GM vehicle was the former GMPP warranty. This was basically an extension of the factory warranty BUT, with YOUR CHOICE of having a zero deductible, or a range of deductibles. As one might expect, the smaller the deductible, the higher the cost. If you're planning on keeping your vehicle for a LONG time, it could be very beneficial. I had one on my '10 Tahoe that served me well for about 6/7 years. You could then have also chosen time and mileage limits. (Still have the Tahoe.)

Agreed. If you have to buy an extended warranty, the best ones were from the manufacturer of your vehicle. The chances of them shutting down and leaving you high and dry were greatly diminished.

 

[itsbo1313]

The one I bought has helped, but in reading the contract again there are things I thought were covered which are not.

 

[OR VietVet]

The one I bought has helped, but in reading the contract again there are things I thought were covered which are not.

And the reason you thought these items were covered is because the salesman that sold you the warranty said, "It covers everything", correct? Or what was it that led you to believe they were covered? Assumed without reading or what, if anything, was said?