Extended Warranties on a Superduty

[HCJtractor]

I know the common opinion is to avoid these extended warranties. But I would like to hear specific examples, good and bad.
My truck is out of warranty due to age. a warranty was offered that covered most everything except normal wear parts. It was very specific, and seemed quite extensive and complete. For 8 years or 75,000 miles, cost would be $1300, $100 decuctible. . I will put less than 10,000 miles per year, so i expect coverage would be for the whole term. I understand that maintenance must be done according to specifications, and good records must be kept. And the shop must be certified, and prior approval is needed. In reading the fine print, it seems fairly straightforward. So tell me, from your experience, how is this warranty not a good idea? It serms likely over 8 years, it should pay for itself. I guess my question, is how can an insurance company screw me, if I follow the rules? So if the Ford deisel has a major glitch, say a blown head gasket, or turbo failure, could I not expect coverage??

Anyone with experiences with these coverages?

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[Fallon]

In the long run when you average it out, companies make a lot of money on those extended warranties. The money they pay out + overhead + profit = the money they bring in.

On average, you will be better off saving the money towards any repairs that crop up & cut out the overhead & profit out of the equation that goes into somebody else's pocket.

That doesn't even get into how nitpicky they can get finding any loophole to avoid paying out on a claim.

 

[EarPlug]

The only place I would (and have) purchased and extended warranty is from the manufacturer. Never from a 3rd party. They always seem to find a way to weasel out of paying!

And, you do not need to purchase from a local dealer. Search the web for Dealers that offer discounts on the same official Ford Plans. There is a hefty markup on these plans.

 

[check]

$1300 with $100 deductible is an excellent deal, but see if you can get it from Ford.

 

[Monster5601]

I bought into the factory extended warranties on my two trucks, 2013 and 2015. I never did this before but did this time simply because I planned on keeping both trucks for a long time. The 2013 is my daily driver and I have a life-time $0 deductable, the 2015 3500 diesel has a 8 year 120,000 mile bumper to bumper with a $100 deductable, we use this to travel the U.S. pulling our RV. Both warranties are through Chrysler, not a third party provider (avoid at all costs), and provide a loaner car and trip interruption protection, if anything does happen.

If I look back at the costs of keeping my 2003 Tahoe running over the 10 years I drove it, the cost of an extended warranty would have more than paid for itself.

The warranty you are looking at can't be a factory warranty so it must be coming from a third party or your dealer. The devil is in the details, for example, the warranty will claim trim is not covered. No big deal, all extended warrantys say the same thing, what is different is what the underwritter considers trim. I had a 2001 Buick, the rear view mirror fell off the windshield and was not covered by the extended warranty becuase the rearview mirror was considered trim. How do you figure out what is really covered, good luck.

 

[ericm979]

I'm with Fallon. I never buy extended warranties. Put the money you'd have spent on the warranty aside for repairs.

 

[IvanS]

In the long run when you average it out, companies make a lot of money on those extended warranties. The money they pay out + overhead + profit = the money they bring in.

On average, you will be better off saving the money towards any repairs that crop up & cut out the overhead & profit out of the equation that goes into somebody else's pocket.

That doesn't even get into how nitpicky they can get finding any loophole to avoid paying out on a claim.

This is my opinion too. An extended warranty is betting your truck will break, if you are making that bet you are better off paying yourself on those odds.

 

[HCJtractor]

I'm with Fallon. I never buy extended warranties. Put the money you'd have spent on the warranty aside for repairs.

I understand what you are saying, but what I am betting is that repairs over the next 8 years will surpass $1300, assuming the repairs are covered, and this policy seems very complete, as I read it. I'm not "betting my truck will break" but I feel pretty sure that it doesn't take much on a Superduty to surpass $1300, over an 8 year period. And if that dreaded catastropic engine failure occurs, having some coverage gives me peace of mind. But I am assuming the warranty company will honor their contract and not weasel out of it. I realize I must maintain very strict maintenance records, but I plan to do that anyway.
I am not so naive to believe every repair will be 100% covered, but it sure seems I can get $1300 worth of coverage over the policy period, which is my break even point.

I would love to hear from some owners who did make claims, and had repairs covered, or if were denied, what was the reason or excuse? And what can I do to increase my odds that the insurance company wiil not find justification to deny a claim?
Of course insurance companies will look for excuses, and can be a pain to work with. That's the nature of the beast.

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[Sprinklerman]

The extended warranty companies have inspectors they send out to verify major problems . They get paid to deny repair claims . It was a friends job for a while , he got sick of it

 

[Fallon]

I understand what you are saying, but what I am betting is that repairs over the next 8 years will surpass $1300, assuming the repairs are covered, and this policy seems very complete, as I read it. I'm not "betting my truck will break" but I feel pretty sure that it doesn't take much on a Superduty to surpass $1300, over an 8 year period. And if that dreaded catastropic engine failure occurs, having some coverage gives me peace of mind. But I am assuming the warranty company will honor their contract and not weasel out of it. I realize I must maintain very strict maintenance records, but I plan to do that anyway.
I am not so naive to believe every repair will be 100% covered, but it sure seems I can get $1300 worth of coverage over the policy period, which is my break even point.

I would love to hear from some owners who did make claims, and had repairs covered, or if were denied, what was the reason or excuse? And what can I do to increase my odds that the insurance company wiil not find justification to deny a claim?
Of course insurance companies will look for excuses, and can be a pain to work with. That's the nature of the beast.

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Noatter how you look at it. You are getting your truck will break & the repair costs will exceed the cost of the warranty. The warranty company is making the opposite bet + overhead + profit. And they tend to have the automotive equivilant of actuarial tables on their side.

It's no different than insurance. I happily (for various definitions of happily) pay for car, health & liability insurance. On average across lots of people over lots of time the everage payout is a little under your average premiums. I can't afford to cover tens or hundreds of thousands of dollars in health care or liability payments if on the off chance something goes very well. So I have insurance to mitigate the risk. I can afford to replace the engine in one of my vehicles, so I play the odds and assume it's unlikely to happen. But I'm willing & able to do if needed. Over my lifetime it's more likely than not I'll pay less my way than paying for an extended warranty.

Sometimes they make mistakes (CarMax had a way to cheap policy for way to fragile Range Rovers for a while). But on the average you aren't likely to beat them.