Gilkar

BACKGROUND
After a lot of research, we decided to purchase extended coverage for our 7-year-old RAV4. We decided to go with Consumer Reports recommended provider ENDURANCE. After lengthy discussion with the company representative on the phone we decided on a plan that fit our needs, paid the down payment, and set up a monthly payment schedule. We were told we could not make any claims for a specified period of time, (one month), the company would not pay for any problems that existed before coverage, and that a certain amount of milage had to be covered before a claim could be made, (1000 miles). These restrictions were all well and good. Since signing up several months have passed and the mileage requirement has been met.

WHAT HAPPENED
We plan to take a trip to Washington DC in a few days, so I took the car to a local shop for and oil change and to diagnose a rattle coming from the engine compartment. Good thing I did. The mechanic discovered a belt tensioner had cracked and was causing the belt to loosen. The cost to remove and replace the belt tensioner, (and a new belt), came to $640. Yikes! Still, I was glad it was discovered before we embarked on our trip to DC. When I returned home, I got out my contract with ENDURANCE and ascertained that belt tensioners were a covered item. So, I called ENDURANCE to make a claim. I was advised they do not pay claims that have not been pre-approved. HUH? How can I get something pre-approved that I did not know existed? I was told the proper procedure is to have the repair facility call them for pre-approval. They determine if the repair is covered. Then after the work is completed, they pay the repair facility directly. Since I had not done that, it was tough luck. I reread the contract, and it was all there in black and white, so I only had myself to blame. I will certainly be more knowledgeable in the future. If any of you are considering this type of service READ YOUR CONTRACT CAREFULLY. Just a word to the wise
Gilkar

Longshadow Loc: Audubon, PA, United States

bikinkawboy Loc: north central Missouri

Funny how some of those details tend to be left out during the sales pitch.

UTMike Loc: South Jordan, UT

Thanks for the info.

tramsey Loc: Texas

A few years ago I found out the same thing with my extended coverage. I had two things going for me the bill wasn't six hundred dollars and I was paying monthly. Two minutes after I got the news I dropped the coverage and lots of phone calls and letters later they gave me up as a lost cause.

bobmcculloch Loc: NYC, NY

I've had those plans , both good and bad, I don't get them anymore, my local mechanic will not deal with them , the best I've had were purchased from the dealer and were with the manufacturer, ie Chevy, 4 wheel drive went bad on a used Jimmy I bought, they covered it all, no deductible, all Gm parts, if I did buy another I'd want to get one from the dealer I take the car to now.

photon-collector Loc: Tampa Bay Area, Florida

Many people tend to be "insurance poor." Yes, anything can happen at any time....but if you buy a quality/reliable product, chances are very good that insurance will not be needed. I NEVER buy insurance on a new item (often, at checkout). I don't know how much you paid for your insurance policy, but I'll bet that it would have covered your repair cost.

Scruples Loc: Brooklyn, New York

I’m sorry for this crappy way the insurance company does business. This is another reason why I hate them.

fourlocks Loc: Londonderry, NH

Just about any extended warranty plan, for cars, electronics, appliances, etc. is basically a scam. Consumer Reports generally tells you to ignore largely them for the reasons you cited. I once purchased an extended warranty for a car and never needed to use it (as the warranty company fully expects). 10 years after selling the car, the warranty company is still sending me multiple letters, each warning me this is my last chance to renew the policy on that car.

kerry12 Loc: Harrisburg, Pa.

I have not heard anything positive about these extended coverage plans.

AzPicLady Loc: Behind the camera!

My best insurance is that I drive a Toyota! So says my mechanic.

Bayou

Jimmy T Loc: Virginia

I had a similar experience with a "Home Owner Warranty" (HOW) company.
1. You had to notify them (Leave a message, M-F during business hours) of a covered failure to your home's equipment.
2. They would solicit bids and give the contract to the lowest bidder.
3. The lowest bidder would then schedule an "appointment" with you for the following week.
4. The low bidder would then come out, diagnose the problem, and order parts.
5. When the (correct) parts arrived they would schedule another appointment to make the repairs.

This may sound OK, but when you use well water and you need water to bathe, and to flush . . . . well can you see the problem???
Best Wishes,
JimmyT Sends

genocolo Loc: Vail and Gasparilla Island

Does anyone have experience with the Carmax extended warranty?

BBurns Loc: South Bay, California

Third party warranties are there to make money.
I highly suggest going to your local Toyota dealer and look into their extended warranty.
You may be surprised.