Extended Warranties

[asexton]

Are there any good extended warranty companies that are worth buying? I have a 2001 Boxster with 40k miles. Just wondering if anyone has had a company honor a claim? I know they won't honor it without service records but even with that I've read lots of complaints.

Thanks!

[Soetekouw]

My recommendation is to take that $2000-$3500 that you would pay for a policy and self-insure yourself. Although the extended warranty may provide you peace of mind that your repair costs will be covered if something happens, more than likely, you won't recoup the cost of what you paid for the policy.

Since 2004, I have bought several policies with Warranty Direct. One on a Toyota Avalon. One on a Lexus SC430. And one on a 2007 Boxster S. Never filed a claim on the Toyota and the Lexus (policies are now expired - still have the cars and they are still running like new).

Recently filed a claim for the Boxster. $1500 repair bill. Warranty Direct only paid $800. Porsche dealership repair charges are much higher than the industry average, and Warranty Direct only pays industry averages (I guess that is fair).

Bottom line: I paid approximately $6000 for the three extended warranties and recouped $800. Does an extended warranty provide peace of mind? Yes. Could there have been a major failure where the warranty would have paid for itself? Yes. Will I buy an extended warranty again? NO! I will self-insure myself.

With your 2001 Boxster Boxster only worth maybe $10k-$15k, I sure wouldn't spend $2000-$3500 to buy an warranty package. Just my .02c.

[recycledsixtie]

[QUOTE=Soetekouw;279837]My recommendation is to take that $2000-$3500 that you would pay for a policy and self-insure yourself.


I agree 100%. I believe the reason these warranty companies are in existence are because they make money. As the above states you get less back in a claim than what the ins. premiums are. I also self insure. If it makes u feel better you can get an extended warranty. Porsche are definitely more expensive to fix than Toyota. If you do get a warranty make sure you read the fine print. We also have a Camry and a Nissan Xtrail suv - no warranties and nothing has gone wrong. I expect to spend $$ on a Porsche, but not on a warranty.

[asexton]

Thanks for the info. I mainly wanted to have peace of mind since I see tons of ims and rms posts. Warranty Direct seems to be the best deal that covers wear and tear etc... I can make a monthly payment on a warranty no problem but really can't buy a new engine. I just bought the car and it's been inspected so I have verification of no pre-existing issues and I plan on servicing it often and keeping reciepts. I hope that would be sufficient for a claim.

Thanks!

[jdiba]

Asexton, do a search on my screen/login name and see how many posts I have put up on this topic. I did a lot of research. Its really tough to figure out the right way to go. I bought a contract with Fidelity Warranty Services after my CPO ran out. I bought it thru the dealer. I was able to make monthly payments on it and cancel when I wanted. I actually got a refund on it when I canceled it. I kept it until I could scrape up the money to do the IMS.
In retrospect, the only reason I would keep it is for the other potential modes of failure that are documented for the M96 engine. But in doing as much research as I did, I learned that you REALLY gotta go thru these "Extended Service Contracts" (and that is what they are called by the way, not "extended warranties") with a fine tooth comb. There is Wear and tear coverage as opposed to Mechanical breakdown coverage, etc. There's a big difference. On top of that I did read some horror stories about companies flat out not wanting to pay and coming up with the most clever reasons not to. All that being said, when I can afford to buy another one, I just might. After doing some more research. Strictly and ONLY for the Powertrain coverage. In terms of "The Big One", lets face it, what we're talking about in these cars is the engine or anything powertrain related. IMO. Then pray the company you ended up selecting will actually PAY.

[asexton]

Thanks! I haven't bought one yet but plan on it this week. I'm looking for a company that provides wear and tear coverage and doesn't have a max payout of $3,000 or something. I will be doing IMS at some point but til then I'm hoping for a company that would actually pay. What company would you use for powertrain coverage if you bought one again?

[jdiba]

Honestly ? Man, I don't even know. The contract I had thru Fidelity was a mechanical breakdown (no wear and tear). I didn't learn that concept until after I had bought it. Fortunately I never needed to use it. When the time comes I will start the process again and research. For the coverage I am looking for on the powertrain, (mechanical breakdown AND wear and tear), one thing for certain is it will be ridiculously expensive.

The other school of thought is to do what others here say to do: put away money for the inevitable repair costs. That is why I look at it strictly from the engine. Water pumps, etc won't hurt too much. But the engine on the other hand....