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As printed in NINES
Posted by Stephen Goldberger (more from Stephen Goldberger) on Wed, 12 May 2004 20:07:23
In Reply to: 2000 95 Aero with 25K, Extended warranty?, nat, Wed, 12 May 2004 19:23:28
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There are two issues with aftermarket warranties.
Most important is underwriting. Some warranties are underwritten by licensed insurance companies which are regulated by State Insurance Commissions. There are minimum standards for solvency and you can look up the underwriter's "AM BEST" rating. If a licensed insurance company does go belly up, it's responsibilites are assigned to the remaining carriers doing business in your State. The other kind of company (I forget what they call them) is not licensed, and if they go belly up, you are SOL. Warranty Gold was a huge aftermarket warranty company that went under in the past year or two.
The second issue is whether the policy is a "named coverage" or "exclusionary" policy. The latter is far better - it's like your original manufacturer's warranty (everything is covered except what's named - for a new Saab, that means the tires, "adjustments" made after the 1000 mile check, wear items after 15,000 miles, and items damaged by abuse, neglect, or collision.)
posted by 65.25.68...
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