don't usually bite on extended warranties however?

Question

just bought a new truck and GEICO offers 7 yr 100000 mi warranty for an extra 40.26 each 6 months with 250.00 deductable. covers anything mechanical. good deal?

Answer 1

here is my suggestion; go to consumer reports and check out the make/model/year you are buying; they list all problems associated with that particular vehicle; they go back 5 to 7 years i belive;

ie; air conditioning, electrical etc; some vehicles repair history is minimum; with 7 years, anything that goes wrong most likely wont happen for possibly 3 + years or more;

also; a lot of new vehicles have new warranties from the manufacturer for possibly 3 years?? (free)

now say you dont have any problems for at least 3 years minimum; by that time you will have paid $241.56

i suggest like one other stated; take this to a service shop of the dealer for an opionion; ask them what might be the most common mechanical things that can go wrong in 7 years; ask them what would be the average cost for each of the repairs;
(take a notepad and write it down); you may find that the average repair maybe less than $250, and if so, you will be paying 100% for those repairs; so if a repair costs $325, you will pay $250 and Geico will pay $75;

now if this was a used car several years old, it might make sense since you may not know if you are buying a lemon or a good auto; i doubt they offer this on used vehicles, only new since unlikely they will have very few claims; also, if you change companies say 2 to 3 years later for lower price, then you paid for something you never used; this is a new coverage that i never heard about; so if you change companies, it is unlikely another company has this coverage;

like i said; check with the service shop and consumer reports; then make your decision;

if this truck is brand new; one coverage i would suggest getting if available with Geico is "new car replacement cost"

some companies allow either 6 months or 1 year; depending on the company could be 12K or 15K mileage for 1 year; so if you total your car w/in the 1 year or mileage requirement, they will actually replace your car and not take depreciation; if you total your car w/in 1 year with any other policy, they only pay actual cash value which could put you upside down on a lown since vehicles depreciate so much the 1st year; once you hit the 1 year mark and/or the 12K or 15K mileage, you can no longer get this coverage, but you only pay for it 1 year only;

Answer 2

HI!,
My wife has been a warranty clerk at several different dealerships over the past 25+ years. I have heard her say on numerous occasions that the only extended warranties that are any good are the ones you purchase from the manufacturer at the dealership. I don't know anything about Geico, but 40.26 a six months seems really cheap!
Take a copy of the warranty to your dealership. Ask the person who process the warranties and the service manager to take a look at it and give you their opinion!
Watch out for the fine print!
Take Care!

Answer 3

figure out what else you could do with the money if you did NOT get the extended warranty. Also, check the vehicle's repair history. Most of these contracts are a CASH COW for the issuer because the buyer of the contract RARELY if ever files claims. In addition, how much time and mileage does your manufacturer's warranty cover? By the time that warranty runs out, you will have a much better idea if you even NEED an extended warranty, and odds are, it will still be available at that time. I WOULD NOT DO THIS, because in my opinion, it is a BAD DEAL.

Answer 4

The only extended warranties I will buy or recommend is the OEM extended warranties. For Example, buy a nissan, Get a Nissan Extended warranty. ALWAYS use the manufacturer Extended warranties. They are the best, will only use NEW OEM parts and will not go bankrupt. A lot of aftermarket warranty companies go out of business, and they will try their best to deny claims, use old parts, or cheap aftermarket parts, etc.