Extended warranty

[Bassik]

Had been quoted today by VW Osborne Park for extended warranty, 1 year $2761+ and 2 years $3107+!!!

OUCH...!!!

They must be raising the prices to make money off us. Everyone is concerned about VW so why not raise the prices. Think about all the people that had issues on the 2009 models. They may have bought extended warranty and are now making the claims. Gotta make money some way!

That's a killer price though... I wouldn't do it.

[wai]

They must be raising the prices to make money of us.

The make money out of you ALL THE TIME. You only have to try and find an insurance company that has gone broke because it paid out too much.

[kleung]

My R36 is about to turn 3yo, so I'm looking at warranties too. The usual Allianz warranties have gotten hilariously expensive - I got quotes in June for my Dad's Golf and my R36 at the same time - since then, the Allianz New Car Warranty 3y/+75k has gone up by about 12%, and the Allianz Assured warranty has gone up by a whopping 28%.

I have been given a new option though, from The Warranty Group (the policy is underwritten by Virginia Surety Company/London General Insurance) - The warranty is extended for 3 years, the coverage level appears (on paper) to be similar to the Allianz New Car Warranty policy, and the servicing requirements are "Your Vehicle is maintained in accordance with the Manufacturer’s service recommendations as detailed in the Vehicle Owner’s Manual." and that "A Duly Authorised Dealer must carry out any service or repairs.". The cost for this policy is about 35% cheaper than the Allianz Assured policy, so it's tempting at the very least.

Has anyone had any experience in dealing with The Warranty Group? If so, any feedback positive or negative would be appreciated. TIA.

[wai]

Insurance companies are playing on the fear, uncertainty and doubt in the minds of VW owners and adjusting premiums up to see what the market will bear.

One thing to look for is to see which insurer is actually underwriting the policy. It's the same with general insurance where one of the biggest players is Suncorp. Have a look at their web site and see the brands that they own. It might just surprise you how they can offer cheap insurance under one brand, but expensive insurance under a different brand.

The same goes for health insurance. There is an ad doing the rounds on TV for an alternative cheap health insurance that is actually a brand of Medibank!

In your case, the underwriters don't look like being locally based. As such, you might find the jurisdiction for claims is not Australia, and this could leave you high and dry in the event of a dispute.

Ok, so do a little risk assessment yourself. List what might go wrong, and using the history you have with the car, what the probability of each risk is likely to be. Next see what each might cost you to repair and then decide whether what you are paying for the policy makes sense. You might just decide to not give the money to someone else but set it aside in a term deposit and earning you some valuable interest. Heaven forbid, if something did go wrong, you have the money to take care of it.

Basically, this is exactly what the insurance company does, AND they make a very good living out of it

[Zel]

Hi All,

Just purchased a 2011 GTI and the new car warranty is good until March next year, as Converted mentioned above I got the same quote from Osborne Park for extended warranty. (1 year $2761 and 2 years $3107!!)

I've seen much better deals posted on forums over the past year or so however can see that these prices have increased a bit, but was hoping not up to $3k.

Any advise would be much appreciated in terms of brokers or other dealerships that may offer this Alliance warranty insurance at a better price (I've read prices around $1600 for 2/3yrs however not sure if this is still the case).

[Guest001]

Hi All,

Just purchased a 2011 GTI and the new car warranty is good until March next year, as Converted mentioned above I got the same quote from Osborne Park for extended warranty. (1 year $2761 and 2 years $3107!!)

I've seen much better deals posted on forums over the past year or so however can see that these prices have increased a bit, but was hoping not up to $3k.

Any advise would be much appreciated in terms of brokers or other dealerships that may offer this Alliance warranty insurance at a better price (I've read prices around $1600 for 2/3yrs however not sure if this is still the case).

Try Used car warranty, extended new car warranty & bike warranty - I Need Warranty Now I got a 2 year Allianz for the Polo for $1450 and a Swann for the Passat for $1750

[kleung]

In your case, the underwriters don't look like being locally based. As such, you might find the jurisdiction for claims is not Australia, and this could leave you high and dry in the event of a dispute.

Thanks for your insight, I appreciate you taking the time to post your thoughts.

I did a bit of due diligence, and found that there a very significant proportion of negative reviews specifically pertaining to the claims process for the cheaper policy. While I understand that people are more likely to post with a negative experience than a positive experience, and that some people have unrealistic or unreasonable expectations, the posts that I saw really didn't inspire confidence. In contrast, members of this forum who have purchased one of the Allianz-backed policies seem to have quite positive experiences.

You might just decide to not give the money to someone else but set it aside in a term deposit and earning you some valuable interest. Heaven forbid, if something did go wrong, you have the money to take care of it.

Affording the repairs is not so much of a concern as simply wanting to limit my potential exposure. Your suggestion is a very good one, especially for anyone who might have difficulty paying for sudden and major repairs.

Basically, this is exactly what the insurance company does, AND they make a very good living out of it

You're not wrong there. It's risk management. The insurance company, for a known cost, limits your exposure to a given risk. It's not necessarily about saving cost over the long term, but more about avoiding any potentially large and unexpected expenses, which invariably occur at the most inconvenient time.

You buy health insurance in case you get sick, and you buy car insurance in case you have an accident. The likelihood of getting sick or having a car accident is relatively low, yet many people still buy insurance because the consequences of not having it are potentially severe.

I've seen much better deals posted on forums over the past year or so however can see that these prices have increased a bit, but was hoping not up to $3k.

As I mentioned in my previous post - the premiums have gone up significantly again in just the last 3 months. Spewing now that I didn't jump on it 3 years ago, when the same policies were being sold for (so far as I could tell) between $1000-1500.

[DrWHO]

The manufacturers warranty on my Golf ends in June 2014 so I thought I'd start looking at my extended warranty options.

The selling dealer in Sydney offered an Allianz product in December 2011, 3 years @ $1500 - $1600.

I am now told Allianz offers a slightly different product (unlimited Km's + road service), but only for 2 years @ $3950!

Heavens above I should have bought it 2 years ago. $4000 represents about 20% of my cars value.

[wai]

I would not buy it, but it's your choice.

Just make sure you read through and understand it as you need to make sure that you are actually getting covered what you think/believe you are being covered for.

Above all, remember it is insurance and not warranty (no matter what they call it). Warranty is offered by the manufacturer and does not involve an insurer, just as when you bought the car. You were given a warranty and it was not from an insurance company.

[DrWHO]

I would not buy it, but it's your choice.

Above all, remember it is insurance and not warranty (no matter what they call it). Warranty is offered by the manufacturer and does not involve an insurer, just as when you bought the car. You were given a warranty and it was not from an insurance company.

Either the insurance company wants to make a motza out of the latest media frenzy or they have no faith in the product and thus expect many claims...or both. Basically, for that kind of money anything less than the factory extending my original warranty is not good enough.

Even though I have the 118 (2011), of which many examples (of the engine of the year), have self-destructed I'm going to cross my fingers and hope for an uneventful 2014, because in 2015 I'll move on to a new car.

[kam]

just bought a 2nd hand golf r last week. the factory warranty is until july 2014

if i want to get extended warranty, do i need to go back to the original purchase dealer ?

[POW]

No,any dealer will do.and u can also try extended warranty agent too.
I bought mine fr dealer though,make sure u bargain.price can vary alot

[wai]

just bought a 2nd hand golf r last week. the factory warranty is until july 2014

if i want to get extended warranty, do i need to go back to the original purchase dealer ?

No, you go through any insurance broker as that is what you are buying...insurance.

[kam]

so, just to get my terminology correct, warranty & insurance are the same thing ?

[Guest001]

so, just to get my terminology correct, warranty & insurance are the same thing ?

No they sell it as an Extended Warranty but it is fact insurance and is usually underwritten by Allianz or Swann.

A manufacturers warranty is paid by the manufacturer and has to be authorized by them and the cost is borne by them

The extended warranty is authorized by the underwriters and is paid for by them. Same S*** different bucket

Also as said it can only be bought from a broker which includes VW acting as the broker. I got mine from www.ineedwarrantynow.com