Warranty Experts

Discussion in 'General RVing' started by mikebough, Jan 19, 2006.

  1. mikebough

    mikebough New Member

    We received a quote from Warranty Experts.com and we were surprised by the price and what they covered. It seemed to be extremely fair. It said that if we had no claims prior to end of contract we could get a full refund. Does anyone out there have any first hand knowledge of this company? Like; do most dealers accept this warranty, do you have to fight with them to get a problem fixed, ect.

  2. C Nash

    C Nash Senior Member

    Warranty Experts

    Mike sounds like a deal to good to be true on the full return if not used but more than likely you would have some sort of claim. What was the price and did you compare to other warranties?
  3. Grandview Trailer Sa

    Grandview Trailer Sa Senior Member

    Warranty Experts

    Yes, that does sound too good to be true. You have to remember that these companies are in business to make money. How can they return your premium if not used. Maybe I will call the company that carries my life insurance and tell them I am still alive......

    To answer his question, I have not heard of Warranty Experts. Would like more info, just in case this is true.
  4. hertig

    hertig Senior Member

    Warranty Experts

    I'm pretty sure it is true; if it was not true they would be subject to all sorts of penalties. But is it good? Let us see.

    Say you get a policy for $1600 for 4 years (pulling numbers out the air here). If after 4 years, you don't file any claims, they give you your money back. That is 4 years they have used your money 'for free', getting all the profits from it while you got nothing (except piece of mind). Not a bad deal for them. Probably only a fair deal for you, as you made no money on that sum, and due to inflation it was worth less when you got it back. But not worthless, as that piece of mind has real value.

    Scenario 2, you have a claim for $800 (which meets all their criteria for acceptance). No refund now for you, and you have paid $1600 for $800 worth of work. They got the free use of $800 for a while, and $800 to keep for themselves. An even better deal for them and even worse for you. This is why extended warranties are a 'gamble'.

    Only in the rare case where your paid claims are greater than $1600 do you come out ahead, and they come out behind. Let us assume that they have done the research so this case is the exception rather than the rule :) And be aware that their regulations are designed to allow them to disallow many repairs. Even with the best of them, you have to be religious about maintenance and records.

    By the way, I think I saw a post which claims the company which insures Warranty Experts is going out of business. Might want to ensure this is not so, or the replacement company is solid, before signing on.
  5. Kirk

    Kirk Senior Member

    Warranty Experts

    Warranty Experts are brokers and do not actually underwrite the contracts. The contract he speaks of does exist and is binding, or so our friend who is a practicing attorney believes. I have one of those contracts. They run for three to five years, depending upon the specific contract(ours is for four years). They are written that way to encourage the buyer to pay the claims that only exceed the deductible by a small amount and they are usually a contract with a substantial deductible(we chose $200). The company does make money on these contracts in two ways. First of all, the refund policy helps to keep the claim rate low for those who do use the coverage. Second, fewer than half do reach the end of the contract with no claims, so most do not get the refund. And last, even when the customer does get a refund, the company has had the use of the original price for the three to five years and they have made money on those funds. On the other hand, if you seek the contract only to protect you from a major disaster, like an engine or a transmission, then you get that protection and if nothing bad happens, you get your money back. Keep in mind that if you have no claims, the company has no expenses either, so it is easy for them to show a profit. If purchased for the proper reason, these contracts can be a good service. And our attorney was able to make contact with three former customers of the company that wrote ours had refunded the price too, so that too can be documented.

    It is true that both Warranty Experts and the underwriter do make money on the contract. Warranty Experts work on a commission and they make their money up front. The insurance company that writes the contract is regulated under the insurance laws of the state where they do business. They make their money from those who have claims and do not use the total amount paid and from the return on the invested funds that have been paid in as premiums. It can be a good thing, if you check them out. No extended warranty will save you money if there is no major problems. But that same thing is true of your home owner's insurance and the auto insurance that we all carry.
  6. Grandview Trailer Sa

    Grandview Trailer Sa Senior Member

    Warranty Experts

    Well I'll be................
    Not heard of this, but we are thinking of buying another fifth wheel and just might have to look into Warranty Experts.
  7. WilleyB

    WilleyB New Member

    Warranty Experts

    Hi all, when I bought my rig last Nov with 100K miles I believed this was the best way to go. What I purchased was a bumper to bumper warranty covering everything in and on the motor home. Included with the coverage in the event of a breakdown, is a rental vehicle, hotel plus meals costs (limited of course) so in the event of a major breakdown on the road it will be worth it. For minor stuff theres the auto clubs and Sam's. However this one cost me about $2500 Can and runs for 3 years or 30,000 Km. The policy I received from the dealer (broker in this case) stated I'd receive credit for the amount in their store. I immediately applied for cancellation, which was answered by a telephone call from the insurer telling me I most certainly could get a refund of money sent to me instead of the dealer. I asked for it in writing on a company letterhead and signed.
    I got it! Below in Quote, is a portion of the letter received by myself from the insuring company

    quote:Further to our discussion on November the eighth on the ‘Secure Loyalty Credit’; You may apply for a full refund inclusive of taxes if you have not had a claim during the term of your warranty. Following proper procedure as listed under ‘Schedule of Coverages’ in the contract, you may request any monies owed go directly to you instead of the selling dealer as a credit.
    Also listed under ‘Schedule of Coverages’ first paragraph; “We will pay for costs to repair or replace any breakdown of a part listed……etc…etc..”
    Pay for costs refers to the “Labor” for repairing or replacing that part at a licensed repair facility.

    The method of claiming for repairs is as follows, Have an authorized repair facility contact the insurer with their estimate of repair, the insurer will authorize the repair and the repairs will be billed to them, all this is on the policy.
    If you do plan to buy, read the fine print about return of the premium, you will have 30 days to back out of it if it kind of smells bad.


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