Olympicare extended warranty (Ethos Group) ?

[Coldjensens]

When you buy one of these contracts whether a warranty, service contract or some other confirugation, it is a form of insurance.

You first pay a significant comission to teh salesman, the delaerhsiup and the middleman. You then pay a profit to the company and pay for their overhead in managing (denying) and processing claims and payments. You also pay for their advertising. After all fo that, the balance is put ito a pool to pay for covered repairs. There is not magic, These companies make money. Unless you are really unlucky with your car, the moeny that they make is your money. Unless you are really unlucky with your car, you are also paying the cost of covering the other guy who IS really unlucky.

A good deal?

[JTMORRIS]

Originally Posted by NY'er lost in MA

Seems like you hit the nail on the head. I'm going to cancel the Olympiacare and probably get HondaCare which is better coverage at about a 3rd of the cost!

I just moved from a GMC dealership to a Honda store. The Honda store stopped selling HondaCare altogether in favor of the Olympicare coverage because HondaCare didn't cover wear and tear...like if the window started rolling down slower than manufacturer's spec, they wouldn't replace the part until it completely failed which typically happened after the 36 month warranty. Customers weren't happy. The Olympicare is more expensive because it's designed to pay for parts that are still working, but not at manufacturer's spec, which happens more often than complete failure. The service department here is a big fan of Olympicare...less heat from customers because claims are paid.

With that said, GM has a Major Guard coverage that mirrors the Olympicare coverage at a zero deductible, but is slightly more expensive.

You get what you pay for, basically. Make sure whatever you buy covers wear and tear, rentals, and trip interruption (hotels if it breaks down away from home)...and be aware of the differences between New car coverage and Used car coverage.

[JTMORRIS]

Originally Posted by Coldjensens

When you buy one of these contracts whether a warranty, service contract or some other confirugation, it is a form of insurance.

You first pay a significant comission to teh salesman, the delaerhsiup and the middleman. You then pay a profit to the company and pay for their overhead in managing (denying) and processing claims and payments. You also pay for their advertising. After all fo that, the balance is put ito a pool to pay for covered repairs. There is not magic, These companies make money. Unless you are really unlucky with your car, the moeny that they make is your money. Unless you are really unlucky with your car, you are also paying the cost of covering the other guy who IS really unlucky.

A good deal?

So by that rationale you suggest not paying for health insurance or car insurance? All insurance is the ”Thank God” principle...you never used it, thank God...you had to use it, thank God you had coverage.

Car coverage is the $20 per month you KNOW about versus the $800 surprise, and less the headache of dealing with multiple opinions at shops, rentals, etc. It's for some, not for others.

[motormaker]

^^ Bad analogy. Health vs extended warranty.

[christech11]

What many people don't know is that these so called "manufacturer extended warranties" aren't actually backed by the manufacturer of the vehicle. The vast majority of them are underwritten by an outside insurance company. Don't think that just because it has the car makers emblem on the warranty contract it is insured by that car maker.