I’m an idiot! Warranty company

[VR Nicastro]

When I bought my 2016 Ecodiesel preowned in November of 2019 I purchased a service contract. 7 year 100k only because of the potential engine issues. My factory warranty runs out the end of this month. I decided to get my extended warranty info out and read it. I thought I purchased a FCA 5 star warranty. Nope, I wasn’t paying attention. It’s some company out of Colorado called Warranty solutions. 7 year 100K. I read the reviews of the company and just like any bogus warranty company they find any reason they can to deny a claim.
I purchased the truck out of state because I couldn’t find the truck I wanted locally. I looked for three months. Ram wasn’t building them in the classic body style with the Ecodiesel because of all the emissions issues. They still aren’t offering it in the classic body style.
Live and learn. Gonna call a few local dealers to get a cost of a 5 star warranty to cover me to 100K.

 

[jejb]

Most of those warranties have a clause where you can cancel and get a prorated amount of the price back. Also keep in mind that the time starts when the vehicle was made, not from when you buy the policy. So a 7 year plan is only going to cover a 2016 for a year or two.

 

[Scottly]

It’s some company out of Colorado called Warranty solutions. 7 year 100K. I read the reviews of the company and just like any bogus warranty company they find any reason they can to deny a claim.

No, they don't. The number one reason these companies usually deny a claim is because the repair facility is throwing parts at it and can't accurately diagnose it. Factory service contract programs have audit rights, so they can reclaim money from a dealer after the claim has been paid. Other service contract companies cannot, so they must have accurate complaint, cause, and cure information. Too many repair shops get a check engine light for 12 different sensors then proceed to replace twelve different sensors, when the whole time is was a different issue causing the codes...Not dishonesty on the part of the shop, but lots of incompetence. As an FYI, Warranty Solutions offers pro-rata refunds for the unused portion of the contract, and all of their products are underwritten by Heritage Indemnity Co out of California. The number for Heritage is (303)987-5500. If WS doesn't give you the answers you want, (1-800-322-3933), call Heritage. No, I don't work for either of them, but I do work for a billion$$ insurance company that insures many of these programs.

 

[Scottly]

Most of those warranties have a clause where you can cancel and get a prorated amount of the price back. Also keep in mind that the time starts when the vehicle was made, not from when you buy the policy. So a 7 year plan is only going to cover a 2016 for a year or two.

Some cover from the in-service date as you stated, and some cover from the purchase date. When you buy the contract, the start date and end date are clearly stated on the declarations page.

 

[VR Nicastro]

My main concern is the motor. I was reading a post on here about a guy who did a rebuild on his Eco. Parts are scarce. You can buy a crate motor for $7500 with no core charge. That tells you right there they are disposable engines.

 

[VR Nicastro]

No, they don't. The number one reason these companies usually deny a claim is because the repair facility is throwing parts at it and can't accurately diagnose it. Factory service contract programs have audit rights, so they can reclaim money from a dealer after the claim has been paid. Other service contract companies cannot, so they must have accurate complaint, cause, and cure information. Too many repair shops get a check engine light for 12 different sensors then proceed to replace twelve different sensors, when the whole time is was a different issue causing the codes...Not dishonesty on the part of the shop, but lots of incompetence. As an FYI, Warranty Solutions offers pro-rata refunds for the unused portion of the contract, and all of their products are underwritten by Heritage Indemnity Co out of California. The number for Heritage is (303)987-5500. If WS doesn't give you the answers you want, (1-800-322-3933), call Heritage. No, I don't work for either of them, but I do work for a billion$$ insurance company that insures many of these programs.

I’ve seen their BBB complaints. Yes, most are Whiny people. From what I understand, these motors suffer from main bearing failure.
A FCA 5 star warranty will know to change the engine because it’s not repairable.
Secondary companies will try and repair it. When they find out it’s not repairable they will look for some bs reason to deny the claim. “Oh.. you put larger than stock tires on your truck” caused excessive ware on the motor.. denied!
I had a friend who owned a repair shop for over 20 years and he stopped dealing with aftermarket warranty companies. One company wanted them to just change one piston and rod in the engine because of failure, they didn’t wanna pay to rebuild the whole engine.

 

[Scottly]

I’ve seen their BBB complaints. Yes, most are Whiny people. From what I understand, these motors suffer from main bearing failure.
A FCA 5 star warranty will know to change the engine because it’s not repairable.
Secondary companies will try and repair it. When they find out it’s not repairable they will look for some bs reason to deny the claim. “Oh.. you put larger than stock tires on your truck” caused excessive ware on the motor.. denied!
I had a friend who owned a repair shop for over 20 years and he stopped dealing with aftermarket warranty companies. One company wanted them to just change one piston and rod in the engine because of failure, they didn’t wanna pay to rebuild the whole engine.

There is no denying that some of these companies exist and no denying that what you say happens, happens. But it's not the majority, it's a small portion. There are more dealers selling service contracts from secondary companies then are selling factory programs. There are many reasons for this, but one of those reasons is the dealer not being paid fairly for the repair by factory programs. This is so bad that some states have enacted laws to ensure the dealer gets paid retail rates for the repair and not some half-assed rate based on warranty book or some other such nonsense. These companies pay....literally....tens of million$$ in claims every year, but when one ******* tells half his story on the BBB website and the company he's complaining about didn't pay their BBB dues for the year, the extortion begins. You get half the story from the guy running a 3.7L V6 with a 6" lift and a set of 40's, whose speedo has been recording less than actual mileage for three years while being routinely flogged in the mudhole with no record of oil changes ever having been done...But he's mad because his claim for a spun bearing is denied, even after a field inspector notes oil starvation with pics. That's the other side of the coin, and it happens every day. For every bad complaint about a dealer/service center/service contract company, there are equal parts stoooooopid owners that can barely tie their shoes in the morning ******** about how unfairly they were treated because they bought the vehicle, put gas in it, and expected it to run forever without any care or maint.

 

[Scottly]

You can buy a crate motor for $7500 with no core charge. That tells you right there they are disposable engines.

All it tells me is that the engines are new, so no core is required.

 

[PoMansRam]

I guess chalk it up to a learning experience and maybe try to cash out of it and get something local. I would never buy a warranty w/ an out of state vehicle purchase. I've purchased aftermarket contracts in the past through my local selling dealerships.

If it's a big established dealer or dealer network, they're only going to sell aftermarket contracts that they have experience with and they know will pay out w/out issue. It's still a profit maker for whomever is selling it and potentially a waste of money for the vehicle owner, but if that ~$3600 offers you some comfort, why not. People have much more expensive afflictions!

 

[Htsderek]

While you're talking to your local dealer it'd be good to get some quotes from dealers out of your area as well. I think I purchased mine from Ziegler, it was $1200 less than the dealer offered. There are multiple threads on this forum about it.

Zeigler: https://www.factoryplans.com/

Also mentioned favorably: https://chryslerwarrantydirect.com/

 

[VR Nicastro]

I went to my local dealer that I would typically buy my Dodge or Ram vehicles from. They try not to sell any Mopar warranties anymore. They use a company called Continental Warranty Inc. They say they have less hassle getting things covered.
He quoted me $2400 for a 4 year 48K. It’s almost a bumper to bumper warranty. Zero deductible.
When I purchased the truck I paid $1950 for a 7 year 100K.
$100 deductible. The 100k is from date of in service. The 7 year is the time of purchase.
Same with the warranty from the local dealer. I guess I’ll keep what I have and take my chances.

 

[jejb]

The 100k is from date of in service. The 7 year is the time of purchase.
Same with the warranty from the local dealer. I guess I’ll keep what I have and take my chances.

Again, I'd read the fine print. Does not sound right.

 

[18harvest]

The real reason dealers sell aftermarket warranties is because they get a bigger profit for selling it to you.lets be honest here.second most will replace parts with like kind Quality for repairs.i.e. if your engine is completely toast at 80000 miles you don't get a new engine or a reman you get a used engine with 80000 or less miles.read the fine print for lkq parts.although manufacturer extended warranties are better.nowadays no matter the product or manufacturer they are going to try to find an out for covering anything.

 

[Greg Lopez]

In most cases it is unwise to purchase extended warranties from the dealer you purchase your vehicle from. The F&I finance & insurance) representative that you go through all of your paperwork signing at the stealership gets extra money (spiffs) by pushing 3rd party or in-house warranties instead of the OEM manufactures warranty such as Mopar.

You can actually get a better deal on the OEM warranty such as Mopar Maximum Care by searching other dealers online. (Florida and i believe N.Carolina don't permit this last time I checked).

My 2013 Challenger that I ordered new still has the same Mopar Maximum Care coverage it did when new because i have so few warranty claims and just turned 27k on the odometer!
It is a rare offer for most vehicles that age.

Shop around and call other Mopar dealers out of state for a Mopar service contract. They built it, they usually cover more components than the third party companies.

This is my opinion and experience. Your mileage may vary but it's definitely worth looking into.

Google Mopar Extended Care Warranties...make sure that you confirm it is a genuine Mopar Warranty.

 

[GTyankee]

The thing that some dealerships will sell you when you are buying a new vehicle, is a warranty that may be good in 2 or 3 States surrounding the dealership.

The real Mopar Warranty is good in Canada, Mexico & the USA at any authorized repair facility

By the way Zeigler, the company mentioned above, does sell the official Mopar Warranty & it is usually cheaper than some dealerships prices. If the dealership really wants all of your business, they will match Zieglers price