Extended Warranty Offers For My Corolla - Corolland: the Toyota Corolla Forums

Hi,

I have been getting several letters and post cards through the mail warning me that my vehicle's warranty has either expired, or is going to expire and that I should immediately contact the number listed on their letter/card to renew or reinstate my warranty. I was wondering if anyone else has been getting these letters/post cards as well. There were several different companies, but the most prominent one was "Warranty Activation Headquarters". I understand that this is not an extended warrranty, but, rather an insurance-type service contract. I bought my 2000 Corolla in March of 2006 and these letters AND automated phone calls started shortly thereafter.

My question is this: Has anyone had any kind of experience with these kind of service agreements? Does anyone know roughly how much these "warranties" cost on average? Most people that I know that have had some kind of dealings with these contracts usually say that they are basically a ripoff. However, I have also known a couple of people that swear by them and say that they are totally worth it!! I personally believe that they are a sham myself, but, I would like to know what you guys think about them and if anyone has had any first hand experience with them.

Any comments would be greatly appreciated!

Thanks!

timkedz

1,424 posts

The ONLY extended warranties that are worth the paper they are written on are those backed by the vehicle's manufacturer.

The manufacturer has a vested interest in making you happy, they want you to buy another car.

A 3rd party warranty company doesn't give a snip if they make you happy or not, you already bought the warranty from them.

IMHO, extended warranties from 3rd parties are a complete waste of money.

They cover virtually nothing, and cost a lot.

Getting them to pay out is like a root canal. Also, extended warranty companies have a bad habit of going bankrupt and not giving you back your money.

Even factory extended warranties have limitations and it can be hard to convince them to pay if certain things occur.

As Consumer Reports says, Extended warranties are only a wise investment on unreliable, problem prone cars. A better investment is to buy a vehicle that is more reliable and less problem prone.

For a reliable car like a Corolla, a extended warranty is a gamble. You may never need it and then you are out all the money you paid for it.

I bought my 2002 corolla in 2006 and started looking at these warranties as well... Basically I came to the conclusion that they were all ripoffs...

The list of what they cover is often very small and only after you submit your vehicle to one of their "Mechanics" for inspection...

I decided to save my money and invest in a factory service manual and fix anything that breaks myself...

The only way to know for sure with the company mailing you is to ask for a written copy of what they cover and their exclusions & terms and conditions...

Also be aware that several of the companies that I contacted were very pushy. This was a big clue to me... they called me over and over again to see if I wanted their warranty... Then when I told them no, they would try to pressure me into it even lying about "problems with your year of vehicle" to convince me to buy…

A warranty is nothing more then an insurance policy… You have to ask yourself is this worth the money I'm going to spend.

When I purchased my 2004 Toyota Sienna, the dealer offered the Toyota extended Warranty for about $1,600. This is a bumper to bumper warranty (with some exclusions) for 7 years (4 really). I knew I could get this from another dealer for $500 so I declined… Now $1600 was WAYYY tooo much… however I went ahead and gave up $500 to buy some piece of mind… The Toyota warranty also came with some added benefits such as towing, rental car and so on. Chances are I will never use it…

I believe when I checked the pricing for the after market warranties on my corolla was near the same $1400 and all they covered was basic mechanical failures of the drive train, and again after I submitted the vehicle to their inspector… So ask yourself what are you giving up vs what are you giving…

Bikeman982

I think they just want your money.

If you had a problem, it would be extremely difficult to get a claim resolved.

I recommend only an authorized dealer extended warranty and not an independent company.

I received the same post-card, the only thing is my cars are out of any warranty for many years. this is just the scum- sale - advertising, etc.

Bikeman982

I received the same post-card, the only thing is my cars are out of any warranty for many years. this is just the scum- sale - advertising, etc.

That's a good one - they want to extend your expired warranty.

How dumb do they think you are??

Thanks for the responses! It definitely backed up my own thoughts on the topic!

I truly believe that those cards/letters are merely an attempt to snag potential customers, by preying on their fears. The best part is these contracts are so cleverly worded that you REALLY do believe that you are getting a great deal!

I went on line and downloaded a couple of different service contract forms and I've read them carefully. On the surface, they sound awesome, until you get down to the bottom and read the fine print. There are so many exceptions and exclusions that you couldn't possibly come out ahead! Here are just a few examples:

1.) Non-covered parts failing and causing covered parts to fail negates the coverage.

2.) You must have ALL maintenance documented and done within their time allowances.

3.)All listed parts/components are warrantied against failure, as long as it's NOT normal wear and tear, etc......

You get the idea!!!

So, they really have all their bases covered here! You guys are all right when you say these contracts are simply not worth the paper they're written on! What galls me the most is that they have started calling me and leaving "threatening" messages like; "You are driving dangerously!!! You are without protection!!! Call immediately!!!" "You shouldn't be operating your vehicle without our policy!!!" They make it sound like your driving without automobile insurance, for Pete's sake!!!! To me, those tactics cross the line!!!

Anyway, those are my recent finding. If anyone still wants to share their own experiences, feel free!!!!

regards,

timkedz.

K_Watson

Call your local BBB and make a complaint.

Bikeman982

It is just a way to get your money.

It sounds like it would be impossible to comply with all the requirements of the fine print.

Thanks, guys for all your input!

Like JeffG, OUKB, 99contour & Bikeman have all stated, I too, think that most, if not all extended warranties are basically a ripoff! I basically just needed to hear it from other members!

Last night, I carefully reread (for the last time, I might add) a copy of a sample contract from a couple of different extended warranty companies and I am amazed how carefully written they are. I have never seen any kind of document that would promise so much and and deliver so little!! Like Bikeman said, it would be nearly impossible to abide by ALL the fine print! One misplaced receipt for an oil change or whatever and you are screwed!!

I used to work at a dealership back in the '90's and I remember a lot of people that had these contracts and they did cover SOME things, but, overall, most customers were at least somewhat disappointed when they found out what was covered and what wasn't. So, at best, you could only be partially satisfied with your coverage. Maybe they aren't a complete ripoff, but, you will never get close to getting your money's worth!

The worst thing that sticks out in my mind was watching on the news a story of an elderly lady that was talked into purchasing on of these contracts on an old '92 Plymouth Sundance that she owned that had only 12,000 original miles!! She was taken in with a low teaser price, only to find out that it was an ongoing monthly charge and that the contract would have ended up costing her several thousand dollars in total. She got out from under it and got her money back, but, it just galls me when businesses prey on people like that! Companies like that are the lowest of the low!

Anyway, to sum it all up, it's kind of like going to Las Vegas; Everyone goes with high hopes of coming out ahead, but, in the end, it is the very rare individual that can beat these people at their own game!! In the end, most people end up on the losing end!!

Anyway, the main point for all of this was just to warn everyone in case other Corolland members happen to receive these notices in the mail!!

Plus, I appreciate the opportunity to be able to vent about it!!!

Thanks, everyone, for your input!!!

Happy Thanksgiving to all!!! (In U.S.)

timkedz