Postby smj999smj » Tue Jan 07, 2014 2:16 pm
$2100 is a lot of money. Most extended warranties aren't worth it and Consumer Reports usually doesn't recommend them as well. I used to be a mechanical inspector for a number of automotive warranty insurance companies and I can tell you that you need to read the fine print and understand what the warranty actually covers. For example, some policies won't cover seal failures and subsequent damage caused by seal failure. If a transmission has bad seals causing it to not shift properly, the claim will be denied. Furthermore, the warranty company will require the shop to teardown the transmission for inspection and, if the claim is denied, the policy owner (meaning "you") will be responsible for the diagnostics and teardown costs of the transmission. You will still have to fork out the money to have the trans replaced or rebuilt on top of those costs. If the seal leaks on a transfer case and it runs low, causing damage, claim will be denied. Same goes for diffs, brake systems, power steering systems, etc. Some policies do cover seals and subsequent damage, so you need to know the specifics of your contract. One of the good ideas the Consumer Reports has is to take the monthly payment one would pay for an extended warranty and put it into a bank savings account set up just for future auto repairs. This way, you get interest on the money and if you luck out and have no major repairs, you still get to keep the money rather than lose it.