Extended Auto Warranty - Fidelity Warranty Services - Purchased for a new 08 Toyota Corolla?

Question

Ok, I think I was basically "talked into" buying an extended auto warranty. It's 7 yrs/100,000 Platinum Coverage with a $0 deductible. It's supposed to cover the engine, transmission, electrical, a/c, lots of stuff. It cost $1,560 and was added into the amount I financed.

I was thinking about canceling but the dealer probably would not be very helpful.

So, now that I have this warranty, do you think it's worth it anyway?

One bright spot is that in the event that I NEVER have to use this warranty, I get my $1500 back. Of course, that's after I pay interest on it! Still, it's something.

What do you all think? Did I make a bad deal?

Answer 1

Sunny, The truth is that company is covering only 40,000 miles of power-train warranty BEYOND the 60,000 your getting from Toyota anyway. I don't know anything about this company but the credit union I've belonged to for going on 38 yrs. offers three separate levels of warranty protection AFTER the factory warranty is gone. I'd like to see every thing yours covers and also what happens if you decide to trade your car before 100,000 miles?
The price is very reasonable if the company is accredited by Toyota or a bank.

Good luck to ya!

Answer 2

I work for a warranty company. That is, the company I work for administrates warranties for 96 different companies. It isn't the length of the contract that determines how good it is. Alot of insurance companies went under after 9/11 and some are barely holding on. Some warranties underwritten and backed by those companies will still cover the parts listed eligible in your contract, but the service facility may decline to work on your vehicle. The fact is, in some cases, the claim may be approved, but as far as the shop getting paid, the warranty company cannot promise when they will get paid. What you need to look for is the plan code you have. That will determine pretty much if you have a good warranty or not. No warranty company can sell you a warranty and then decide not to pay claims. You don't have to worry there. You nailed it... 'they will pay eventually'. That is true. What is your plan code? Is it like deluxe, platinum, etc? I am appalled at some of these answers. Do you guys have any clue that Toyota has more recalls than Ford right now? When Toyota performs a recall repair, that part is only covered for 12 months/unlimited mileage. That part may suffer the same consequence as the original problem, but guess who is stuck with footing the bill after 1 year? Bingo. Platinum Plan means this: Anything that is NOT specifically listed in Exclusions is covered. So lets say you have an ABS light come on. For the cost of your warranty, roughly $2400.00, an ABS light coming on could lead to repairs of $2400.00 if you need EBCM and the diagnostics that go with it. The warranty could pay for itself with one or two claims. With the workmanship going into cars today, and the amount of high tech parts failing, it was definitely a good gamble to extend your warranty 10 years and 100,000 miles. What to watch out for is the downside... No company will pay more in claims than you paid for your car. Some warranties, work the same way, but rather than limit at what you paid for the car, they limit the total claims to the depreciated, or aggregate value of your car. If your car is worth $4500 in 5 years and they have paid out $4200 in claims, then you have a $600 dollar claim come along, they will limit it to $300, and end the contract. Make sure you don't have that type, but with Platinum Plans, I HIGHLY doubt you have that type. Really I am just trying to stay away from naming the ONE warranty company that does have that, but the initials are CAC.

Answer 3

Bad, BAD deal.....totally worthless and I will be shocked if you ever get your money back.

Answer 4

Haven't you already asked this question once today?