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Old 01-09-2012, 03:53 PM
 
Location: Grosse Ile Michigan
24,718 posts, read 59,596,711 times
Reputation: 26823

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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?
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Old 01-10-2012, 06:00 AM
 
3 posts, read 47,206 times
Reputation: 17
Default HondaCare doesn't cover wear and tear...

Quote:
Originally Posted by NY'er lost in MA View Post
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.
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Old 01-10-2012, 06:10 AM
 
3 posts, read 47,206 times
Reputation: 17
Default Sooo...don't buy health insurance?

Quote:
Originally Posted by Coldjensens View Post
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.
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Old 01-10-2012, 02:34 PM
 
Location: The Circle City. Sometimes NE of Bagdad.
17,484 posts, read 18,642,976 times
Reputation: 47039
^^ Bad analogy. Health vs extended warranty.
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Old 01-28-2012, 06:56 PM
 
1 posts, read 6,445 times
Reputation: 10
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.
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Old 05-09-2016, 07:56 PM
 
1 posts, read 1,108 times
Reputation: 10
my name is jose bouza ,I had a warranty with olimpic care back in 2014 and it was a nightmare it toke 4 months to get my car transmision fixed ,they were playing with me I had to go to the dealership every two days and they keept tellingme that olimpic care did not want to take care of my warranty I felt that it was because I speak Spanish I spent 2009 dolars in renta car yes just paid 200 dolars and they kept trying to get the cheapest used transmission available the dealership install 2 times the transmission and did not work I lost a lot of work because that I paid 4 times for wreck and they were tring to convenced me to wait I don't recommend this scam ,I spoke with a rep a I ask him for the address he did not want to give it to me I went to irving I got a addres from internet and does not exist I call from there and a lady hang up on my wen I ask her for the addres it look like they are operating from a apartment one of the reps was making fun of me when I told him that I spent 2000 dolars in rentals that they were supposed to cover ,I don recommend this people I got my car from Toyota dealership in midland and I did not know that they deal with this kind of scamers,if you have any questions 4328539974
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Old 05-09-2016, 08:03 PM
 
16,492 posts, read 17,513,441 times
Reputation: 23546
Quote:
Originally Posted by NY'er lost in MA View Post
Anyone have experience with this extended warranty? I just got it when I purchased a new vehicle but have 30 days to cancel...

Cancel it. It's worthless.
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