I think you'll find that the extended service contracts (important note-they are not warranties, they are extended service agreements) offered by the manufacturers are better overall than those offered by independent agents (on-line or brand X service contracts sold through some dealerships). For the most part, dealerships selling brand X extended service contracts do so for one sole reason/purpose: to generate additional profits from the sale of the product. The manufacturers plans are not inexpensive, but generally those plans run at about a break even for GM, Ford, Chrysler since they, in aggregate, pay out about 99-100% of the dollars collected in customer claims payments. The only positive revenue to the manufacturers is from a small amount of investment income derived from the dollars collected and held until claims are paid, and most of that is burned up in admin costs. These folks run the programs that way to generate a bit more customer and dealer satisfaction. The claims procedures for the manufacturer plans are basically the same as their warranty submission procedures, and most dealerships have a certain amount of leeway in handling customer extended service contract claims before they even need authorization to proceed with repairs.
Watch out for brand X extended service contracts. There is a lot of language in those contracts that enable the administrator (not the insurance company or the selling dealer) to deny reasonable claims. Not being able to produce ALL scheduled and required oil change receipts is more than enought reason to deny your claim for a power window motor that has failed. These extended service contracts generally cost the dealer MUCH less than the manufacturer plans, allowing dealership personnel to sell at a price less than the manufacturer's offering, but at a substantially higher profit margin to the dealership.
Oh, one more thing. No one has to accept the payment method you described via a corporate credit card. In fact many dealers, as a matter of business practice, will only accept extended service contracts from their particular manufacturer. Claim call-in requirements, time on the phone with the administrator, delays in claim approvals, requiring the use of "experienced parts" in almost new vehicles.......all lead many dealers to only honor the manufacturer plan.
Think hard about your purchase. On my last two vehicles I bought the extended service plan offered by the manufacturer.....both times a 5 year 75,000 mile plan. On the 92 Aerostar, the AC compressor went at 70,000 miles and was covered. They also found a leaking head gasket at the time and repaired both of those as well. Worth the money. Yep.
Personally, I'd run from a brand X extended service contract as fast as you could. I have way too much knowledge from another life on how that world works and trust me on this one.......it's not at all about making you a satisfied customer. It's all about effectively managing the claims payment process to ensure a profit for the adminsitrator at the end of the day. If you decide to buy, buy from the manufacturer.
Bob Pence
