Warranty Companies. US FIDELIS, MOGI, STOP REPAIR BILLS.

Repost from Florida thread.

A few months ago, I was considering purchasing one of these policies for my non SF daily driver. Glad I didn't.
There's been quite a flow of water regarding "aftermarket" warranty companies, all them claiming to offer protection against any mechanical failure, with a deductible of around US$ 100 or so.
Take US FIDELIS, for example. "Endor$ed" by NASCAR gobbler Rusty Wallace, this company is based in St. Louis Missouri. The BBB has received over 1200 complaints for misleading advertising and fraudulent tactics. Customers picking up the repair tab after finding out their policy does not cover many items, ie: fuel pump and other electric components.
Ironically, US FIDELIS uses a halo in its logo and portrays itself as "faith based" firm.
Its President, Darain Atkinosn, is described by the St. Louis Post-Dispatch as a "convicted thief, burglar, check forger, and counterfeiter" who found the Lord while incarcelated in jail, and is currently being blessed with a new 17 million, 20,752 sq. ft. home under construction.
Prospect customers being put on the boiler over the phone by abnoxious non industry oriented telemarketers, to "sign up now or face vehicle inspection tomorrow".
The list goes on and on.
Can anyone pitch in with some stories or suggestions?

 

Woah, I just read a article in Car & Driver this morning about those same three companies. I didn't think people actually bought these warranties.

 

My daughter just bought a new Volvo C30 We got insurance with Geico. They have a mechanical breakdown benefit you can get that covers breakdown expenses. It's 20 bucks every 6 months, sounds like a good deal except.. the car is brand new and under warrantee. Can't believe people would get it.

 

I've seen these ads. My feeling was it's too good to be true. Is something seems too good to be true, it usually is.

They are preying on people who are keeping their cars past warranty because of the economy. The used auto part business is the only part of the economy still doing well (until Cash for Clunkers put it in the waste bin).

I guess these people who buy these policies are the same ones who buy Enzite for a "larger male part of the anatomy".

 

These things aren't worth the paper they are printed on. At a whim, they can just say "we are not going to pay." And what are you going to do? Ask again?

Been there, done that. Had to get a lawyer, which worked nicely.

 

Not all aftermarket warranty companies are bad. I had an aftermarket warranty on a Mercedes from a company called Warranty Direct, and they paid every claim I ever made on it. I used both the MB dealer, and an independent for repair work, both of them were able to deal with Warranty Direct directly and I never paid a penny for the work that was done.

Now, whether they are a good deal or not is another question. Like all insurance, it is a gamble, you are betting they will have to pay more in claims than you pay in premiums, and vice versa.

I had bought the Mercedes new in the early 2000s, and its reliability during the warranty period wasn't exactly perfect. The factory warranty was 4 years, I got an extended bumper to bumper with Warranty Direct for an additional 4 years, it was $1300.

I broke around even. They replaced both front A arms (which had some leaking liquid filled suspension bushings), an electronic control module that died, the cup holder (lol), a clicking power window and a couple of other small things. I think those things totaled around $1100-$1200 or so.

That being said, there do appear to be many crooked warranty/insurance companies these days.

 

I am very interested in this and waiting for more to chime in. Please share your incite!

 

They are "service contracts", not warranties. I have used Warrantech on several BMW M cars in the past and have been well pleased...

 

warrentech is a reputable company...most others are scams. happened to a family member, they paid 1800.00 for a "warranty" and then paid out of pocket for repairs due to the fine print.

 

That guy from US Fidelis sounds like a real scumbag....no wonder he can afford all that stuff when you lie and manipulate everyone you can for as much money as you can.

http://msn.foxsports.com/nascar/story/9473952/From-prison-to-the-pinnacle-But-company-that-made-founder-rich-now-faces-public-scrutiny.-

 

These contracts are only an insurance policy only with a deductable. They are NOT,NOT,NOT warranties. The companies bets on the fact you will either sell the car, wreck the car or trade the car before any repairs are needed.

They are a for profit insurance company not in the business of paying claims, they are in the business to make a profit. If they can low ball you on repairs, or refuse any particular repair they are ahead of the game, and they do this every day of the week. The adjusters job is to deny claims and save the company money.

Having been in the Independent Subaru Repair business for nearly 20 years, We have seen many of these quick buck companies come and go. In most cases they apply a separate deductable for each occurance. They generaly apply their own flat rate at a much reduced dollar figure for the locale. They usually won't pay for OEM parts, and only pay for sub standard replacement parts. In many cases they send out an adjuster before approving the repairs. They insist that the car be dissasembled for their inspection. If they deny the repairs you the customer are left with a repair bill and a dissasembled car.

We tell our customers that have aftermarket insurance policies, we will try and get the most money we can for their needed repairs, we also tell them they will be paying the difference between what the insurance company pays and what we normaly charge for the job.

When a dealer sells these policies the profit line from this sale often exceeds the profit of the vehicle. These cheaper low pay companies in some cases sell the policies in bulk to the dealer. The average cost to the dealer is around $400.00 each. The dealer in turn can retail this policy for upwards of $3500.00. So it pays the dealer to sell aftermarket warranties. Keep in mind the insurance company only gets the original $400.00, so you can now see there in no incentive to pay a $2000.00 head gasket job.

Ford, Universal Underwriters, GMAC, (and there are others too) that are very reputible and fair to both the customer and the service shop. Check with the BBB or your States Insurance Commisioner for complaints or feedback BEFORE you buy any aftermarket insurance policy. Remember the dealer is trying to shove the policy on you while you are still inthralled with your new car purchase, at your weakest moment. Don't fall for this hard sell tactic.

We advise buyers to tell the dealer we want to think about the policy have it written in to the purchase agreement you have 2 days to make up your mind. Then go on line and do your do dilligance, and check the background of the insurance company. If you decide to go ahead and buy the policy make the dealer a low ball offer and let them come back to you with a counter offer. If the dealer does not offer a discounted price on the policy, tell them you don't want to buy the car and make an attemept to get up and leave. They almost always decide to cut the insurance policy price, to save the car sale.

Good Luck!!!!!

Howard Musolf
tr0768

 

I had a warranty through Warranty Direct for my last Porsche. I never had to use them but the Porsche Dealership I went to said that they looked like a pretty good company compared to most that they saw. The dealership called them to verify a few things and they seemed pretty legit. FYI - The warranty went WITH the car when I sold it. They transferred it to the new owner for a small transfer fee (like $75 or so).

 

You must have gotten lucky. They have a F rating at the BBB.

http://www.fortworth.bbb.org/commonreport.html?compid=86060022

Is that the same company you dealt with?

 

Red flag right there. If some announces they are a bible thumper then it's a front to justify or hide some scam they've got going. Never fails.