Any good Extended Warranty companies in Canada?
 

I've heard the stories about the bad ones. Are there any out there that are good? I'm looking at picking up a 05 E55 and I want some piece of mind knowing that I'm not gonna have to fork out a crap load of money if some massive failure happens.

old republic.
first canadian.

i'm sure people have had "bad experiences" with every insurance place out there. But those are the two I usually go with, and recommend.

dad had a supercharged E55, those things are pretty reliable i wouldn't worry too much about it. We didn't have any failures, eventually traded in for a E63. Watch out if you do pick it up, cause if u lay on it with traction control off, it'll just keep spinning XD

remember that brand called toyota? Weren't they the most reliable car in the world? lol

I just looked up the e55.. out of 10 classes, its the most expensive to buy a warranty for lol....

Take the money the warranty would cost you and put it aside. Use this money for any repairs you might have.

IMO, there's no such thing as a "good" warranty company. I've dealt with them all and in the end they look out for their interests more than yours. I've seen too many people denied coverage for the most ridiculous reasons (like a BMW owner for not changing the oil every 5,000K when BMW recommends much longer intervals).

Or they approve the repair but you have to take it to a shop they recommend instead of your personal mechanic. Or they want to install used parts (no shit, I once saw a warranty company recommend a used fuel pump module because a new one was $1,000). And you have to wait for these parts and the approval so you're stuck without your vehicle for several days while all the red tape clears.

Think of it this way: The warranty company charges $2,000 for a certain vehicle for extended warranty. They're in business to make money, so they know that this particular vehicle will have, for example, an average of $1,500 of repairs. So they make $500 on average for each car they warranty.

This is why you don't buy an extended warranty - because on average the warranty cost is greater than the expected repair costs for the vehicle.



Now some people think that an extended warranty is a good idea for an expensive car. I've seen many people do exactly this and financially it doesn't make sense. If you can't afford to maintain/repair the car then an extended warranty isn't going to bail you out. So many things aren't covered, and even if you get all the optional "packages" you're still going to have to pay for certain repairs.

For example, we had a guy who bought an SL55 at a smoking deal of $30K from the US. That's basically 1/4 the original price, and this car only has 30,000 km's on it. Great deal, right? Well, until things needed repairs. $1,100 to fix the hard top flaps so the roof would work (very common on these cars). Another $1,500 to fix the shifter stuck in park (another common problem on these cars). A very expensive brake job. None of them covered under warranty.

Here's the thing: just because you bought that used Mercedes for 1/2 or 1/3 the cost of a new car, doesn't mean that Mercedes has also dropped the prices of replacement parts for the car. So this guy is still paying the maintenance and upkeep on a $120K car even though he only paid $30K for the car.



/RANT

What about the Mercedes extended warranty? Does your car not qualify for that?

are you buying through dealer?

like I said, of course there is gonna be some haters....

some stuff is true in there, in fact the company makes a lot more than 500 bucks for every 2000 warranty lol...

the warranty is just like insurance though. maybe a 10% chance that something major goes wrong...every car is different, every owner is different

Sure there are little catches in there for most companies, but they aren't all out to scam you. I've had my extended warranty for almost a year and it has paid for itself already. So basically I'm driving care free for the remaining 4 years.

You aren't really giving good reasons to not buy a warranty. A lot of it is chance, would you like to risk the tranny dropping in your brand new benz? I don't know about you, but I think its worth paying an extra 5% for peace of mind. (Of course it might be more or less than 5% of the price)

Also just because a company makes money of something doesn't mean you don't buy it. The economy would be non functional this way lol. you bought a car didnt you? trust me, someone made money there unless you stole it...

edit:and you have not dealt with them all. do you know how many warranty companies there are?

edit2: I keep seeing more junk in your post. A lot of warranty companies let you take your car to any certified shop. There aren't many that say you have to go to their shop.

And just because your friend who bought a mercedes in bad condition doesn't mean warranties dont cover anything. I deal quite a bit with old republic. they cover everything the original warranty covers plus more. They only skip out on wear and tear items. Hell they even replaced my clutch/flywheel.

just curious would you be deny warranty service if you mod you car? like say you install an aftermarket alarm than suddenly any electrical problem is not coverd?

^ depends what it is. As long as you can prove it has nothing to do with the problem you will be okay most places.

If you throw a turbo on your car, and blow something, don't expect it to be covered.

Easycare has pretty good warranties too. Make sure car is no older than 5 years though.

I'm not a hater - I'm simply relating my experiences with our customers. And most of them have not been good.

Some have done well with their warranties and have already received repairs worth more than their warranty cost, but those are rare cases. Cases the people who sell you the warranty like to point out so they can sell them (we had a guy buy the same car as you and his tranny dropped one week later, and he got a new one from the warranty company).

BTW, what is your relationship to extended warranties - do you sell them (since you previously posted you looked up the price for the E55 and also stated they make more than $500 on a warranty).


Our shop (which has an exceptional rating with our customers) was even blacklisted from an extended warranty company. This was over the fuel pump issue as we told the customer installing a used pump was a bad idea (old pumps had a known issue and new pumps were modified). So by installing a used pump the owner was getting a replacement with the same problem. Their warranty was close to expiriing and the company obviously was trying to get a repair done to last "just until the warranty expires". We explained this to the customer and they called the warranty company and raised shit. Finally they approved a new fuel pump, but told the customer they had to use a different shop since we were now blacklisted. Unfortunately, I can't name the warranty company since there's an on-going fispute between several of our customers (who want the choice to use us vs another shop) and this company. BTW, this is one of the larger and well-respected companies.


Over your lifetime the average person will own a lot of cars. They may get a lemon in that bunch that they go "I should have bought a warranty". But the rest of them will be like "I paid $2,000 for a warranty and never even used it".

Don't look at extended warranties on a single car basis - look at it over your lifetime. You will end up throwing money away if you keep buying them for every car you purchase.

Therefore, the best financial choice is to not buy the warranty and take your chance.

Keeping your car properly maintained is the best way to spend money on your car.

yea selling warranties is part of my job :)

your 1000% right, there are a ton of cars out there that wont need a warranty, like hondas toyotas etc. Lots of them have good track records.

There are others of course that are not as lucky and are known for many problems.

Like I said before, and I'm sure you would agree, it's just like any other insurance. There is a little chance of something happening, but if it does happen your covered (unless you go with a retarded company who tries to put in a used fuel pump lol)

have any of you guys dealt with ensurall?

Making money selling warranties is how you get paid :p :)

Anyone ever considering an extended warranty should consider this: Do you know of any company in the business of losing money?

No. Thus more people buy the extended warranty than make claims. Otherwise the company would be losing money. Personally I think the money is better in my pocket then paying Jgresch's salary. :p

An extended warranty IMHO is for those who cannot afford the slim chance they got a lemon - so they pay a hefty premium to gamble against it. That's a big price to pay cause you're bad with saving money for a rainy day - kinda counter productive eh?

do you work in the business office? Probably in a import or domestic dealership?

To the guy a couple above, I don't make money off selling warranties, my pay structure is weird.

Just started a couple weeks ago because they were short. I'm in the b/office part time for now.

Import or domestic?? as opposed to... from space?

edit: this thread is going no where....

A) there a lots of people, with valid reasons, who think warranties are a waste of money...
B) There are some people who like knowing that they would be covered. I am one of them, and my warranty has paid for itself.... now if I were to get a Honda as my next car, no I would not look into an extended warranty, even though I get them dirt cheap.

^ sorry i meant import and domestic and not euros

lol import.

You missed my point and are trying to deflect.

How would any extended warranty company stay in business if they lost more money for claims than took in for coverage? They base their rates off a certain (small) percentage of vehicles making large claims, and the rest making small claims or none at all.

It all comes down to gambling. Take this for example:
Would you play poker at a table with a $3K ante and only a slim chance of paying and a huge chance you won't even win your ante back? Even the best poker players in the world wouldn't take that bet.

Whether you make money or not, I have to ask people here who they trust more:

The person who is selling the warranty?

or

The person who has to talk to the warranty company on behalf of the customer, provide them with repair bills verifying the customer has kept their car properly maintained, has to come up with a detailed estimate of the job and has to justify to the warranty company that the work you're suggesting is actually necessary?


Here's a question for Jgresch: Do your warranty companies pay for diagnostic time to find out what the problem is in the first place? Think about this carefully before you answer.

I already stated this a few posts ago. I said there are a huge amount of people that wouldn't take it because chances are slim. I realize that.

Edit: I wasn't trying to deflect lol, I already admitted defeat above and didn't feel the need to yet again justify.
Holy crap you guys, I tried to settle this already insisting you all have the upperhand. like I said above there is just a small chance that you would make your money back so its not worth it for most. you're right congrats.
A diagnostic would be covered only after the fact if the problem is covered by warranty. So if you pay $90 to find out that the problem is not covered, you don't get refunded, however if it is covered, then your $90 is covered :)

Edit: It shouldn't be who they trust more, the seller, or the mechanic... Because I don't actually put pressure on people to buy them (since I don't make money from them) I basically just asked if theyve had one before or if they want more information.. I would consider myself a user because I've had mine for a year, and its more than paid for itself. Yea, it's a rare occurance, but if someone asks me my experience with warranties, I say its a good one, because it has been. I'm not gonna say no run away, just just sharing what has happened to me just like you are sharing what your experiences are...I think this dead cow has been beaten enough..

you guys win, don't buy extended warranties, they are for suckers and don't actually work. In the long run, you lose more money than you actually save.

I'm actually still considering one. Just don't know where to go to buy one. From what I have seen. The airmatic suspension is prone to fail on my car and at 600 a strut I think its worth it to get some coverage.
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Ensurall quoted me $3500 for 5yrs extended coverage but I'm not quite sold on their company.
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no!!!! have you not been reading the thread! just put the 3500 aside and you will save money!

Old republic with all the bells and whistles, 0 deductable, towing, room and food paid for, 24 hr road side, etc etc etc was like 4300 iirc, more expensive than most but I feel its worth it..5 years 120k i think.

and to all the others, I'm just helping op with his original question...