Extended Manufactures Warranty, whose taken one up?

[staz88]

Not really. Insurance is taken out because people are fearful and not wise. Insurance companies do not get rich writing policies where the risk is high, and then meet claims. They make their money by writing policies where the risk is low and they are never really going to have to meet a claim. Their primary and only responsibility is to shareholders. All your premium does is pay a dividend to shareholders.

Insurance is the biggest scam around. It is a bit like playing the pokies or gambling at a casino. Sure, there will be a few winners, but the House makes 5%, so on average players will always lose.

To show you how insurance has invaded every part of our life, you can insure almost everything. You can insure against getting a terminal disease, or funeral expenses (where the premiums end up being many times more than any payout), or now even for pets (take a look at the exclusions). The business model for insurance of all kinds is to write policies, but then have conditions or exclusions that mean they will never have to pay out. Sure there will be someone (or their heirs and successors) who might benefit, but for the rest, they will never ever lodge a claim, or have a claim met.

Here's a clue. If you are provided a PDS to take out a "warranty extension", then it is NOT a warranty extension but an completely separate insurance policy. After all, if it is an "extension", you will already have the conditions of the warranty.

How many people have actually had a claim met under a warranty extension insurance policy that would not have been covered by standard consumer protection law?

If you want "peace of mind", then by all means take it out. The chances are that when you actually want to claim on that peace of mind, you are unlikely to get anything. If on the off chance you do have a claim met, chances are you would have been protected under standard consumer law anyway.

Spot on Wai!

[gerhard]

Not really. Insurance is taken out because people are fearful and not wise. Insurance companies do not get rich writing policies where the risk is high, and then meet claims. They make their money by writing policies where the risk is low and they are never really going to have to meet a claim. Their primary and only responsibility is to shareholders. All your premium does is pay a dividend to shareholders.

Insurance is the biggest scam around. It is a bit like playing the pokies or gambling at a casino. Sure, there will be a few winners, but the House makes 5%, so on average players will always lose.

To show you how insurance has invaded every part of our life, you can insure almost everything. You can insure against getting a terminal disease, or funeral expenses (where the premiums end up being many times more than any payout), or now even for pets (take a look at the exclusions). The business model for insurance of all kinds is to write policies, but then have conditions or exclusions that mean they will never have to pay out. Sure there will be someone (or their heirs and successors) who might benefit, but for the rest, they will never ever lodge a claim, or have a claim met.

Here's a clue. If you are provided a PDS to take out a "warranty extension", then it is NOT a warranty extension but an completely separate insurance policy. After all, if it is an "extension", you will already have the conditions of the warranty.

How many people have actually had a claim met under a warranty extension insurance policy that would not have been covered by standard consumer protection law?

If you want "peace of mind", then by all means take it out. The chances are that when you actually want to claim on that peace of mind, you are unlikely to get anything. If on the off chance you do have a claim met, chances are you would have been protected under standard consumer law anyway.

I couldn't agree more.

Still, ...if you're sensible, polite and don't have unrealistic expectations, you get some benefit when you're unlucky and something fails after your 3years new car warranty expires. But, I strongly believe that it's still the car manufacturer's good will (or worry from a bad reputation, if you want to speculate) that they fix your car when it's a bit older, just because someone think that it is not unrealistic that the engine should last more than 200,000km (like someone here mentioned) and the consumer protection law should kick in and you get what you want.

Don't forget the manufacturers have lawyers too.

Spot on Wai!

So I guess all you insurance haters don't have your car, house, or life insured.


You know, so the evil insurance companies can't get rich and pay dividends to shareholders.


What a croc of crap!


Wise men take out insurance

[staz88]

So I guess all you insurance haters don't have your car, house, or life insured.


You know, so the evil insurance companies can't get rich and pay dividends to shareholders.


What a croc of crap!


Wise men take out insurance

Because, obviously, insuring your house which provides shelter for you and your family and for which most people have a mortgage, and if it did burn down it would ruin you for life is on the same level is paying an extra $2000 for 2 years to extend the warranty on your Polo just incase you may get a repair bill just outside of factory warranty but of course the terms of this insurance locks you into get your car serviced at the dealerships, which cost extra money anyway.

Yeah of course it's the same thing.....

[gerhard]

Got 2 years VW (allianz) extended warranty for $1000 for my Polo GTi. But I had to bargain a bit.

Because, obviously, insuring your house which provides shelter for you and your family and for which most people have a mortgage, and if it did burn down it would ruin you for life is on the same level is paying an extra $2000 for 2 years to extend the warranty on your Polo just incase you may get a repair bill just outside of factory warranty but of course the terms of this insurance locks you into get your car serviced at the dealerships, which cost extra money anyway.

Yeah of course it's the same thing.....

Some people can't read. Polo insurance extension $1000.

Polo mechatronics replacement - estimate $3000.

Likelihood of Polo mechatronics replacement being needed - maybe 95%. Is a $1000 or even $2000 insurance a good idea -

Wise men take out insurance

[wai]

Some people can't read. Polo insurance extension $1000.

Polo mechatronics replacement - estimate $3000.

Likelihood of Polo mechatronics replacement being needed - maybe 95%. Is a $1000 or even $2000 insurance a good idea -

Wise men take out insurance

Take a look at the exclusions as a "pre-existing" condition is not covered. The fact that VW have issued a recall means that for insurance purposes, it is a pre-existing condition and so not covered. In fact if you have raised ANY issue during the normal warranty, it is not covered as it is a pre-existing condition.

[Transporter]

Likelihood of Polo mechatronics replacement being needed - maybe 95%. Is a $1000 or even $2000 insurance a good idea -

Wise men take out insurance

I know you said "maybe".
But seriously if you were close to that 95% ? The insurance companies would be in the trouble.

...and I'm not an insurance hater, I have an extended warranty for our Tiguan because it was only $1200. I agree with you that the wise man takes an insurance, but I don't go overboard with it and I still am entitled to have an opinion. You could be angry with all the insurance companies, but it's unnecessary evil and I agree, many of them are just a scam. The life insurance, funeral insurance and so on.
Nothing personal.

[staz88]

Likelihood of Polo mechatronics replacement being needed - maybe 95%. Is a $1000 or even $2000 insurance a good idea -

Are you saying that 95% of all mechatronics units require replacement between 3 and 5 years of age? Which insurance company in their right mind would offer insurance to cover this if it were true?

Knowing my luck, I'd pay $1000-$2000 for the extended warranty and my mechatronics unit will fail at age 5 years and 1 day.

Wise men take out insurance

Wise men own insurance companies.

[wai]

Wise men own insurance companies.

It is also why they say "wise men don't have money in the bank, they have shares in the bank"

[pepperpolo]

Take a look at the exclusions as a "pre-existing" condition is not covered. The fact that VW have issued a recall means that for insurance purposes, it is a pre-existing condition and so not covered. In fact if you have raised ANY issue during the normal warranty, it is not covered as it is a pre-existing condition.

"In summary, Volkswagen New Vehicle Extended
Warranty Insurance is designed to provide cover for the
repair or replacement of parts of your vehicle, in
accordance with the cover provided by a manufacturer’s
vehicle warranty (to the extent that the manufacturer’s
vehicle warranty is applicable to the conditions set out in
this policy), for the period of insurance."

i take that to mean whats covered under the VW warranty is covered under the VW extended insurance warranty.

Thoughts?

[pepperpolo]

Take a look at the exclusions as a "pre-existing" condition is not covered. The fact that VW have issued a recall means that for insurance purposes, it is a pre-existing condition and so not covered. In fact if you have raised ANY issue during the normal warranty, it is not covered as it is a pre-existing condition.

I couldn'f find anything about pre-existing conditions even when searching for "exist".

It does say this, but that is where it is covered under the recall.

"1. Any mechanical failure or costs covered by any
other warranty, entitlement or recall campaign
including any manufacturer’s vehicle warranty,
dealer statutory warranty and/or repairers
guarantee."

[staz88]

I couldn'f find anything about pre-existing conditions even when searching for "exist".

It does say this, but that is where it is covered under the recall.

"1. Any mechanical failure or costs covered by any
other warranty, entitlement or recall campaign
including any manufacturer’s vehicle warranty,
dealer statutory warranty and/or repairers
guarantee."

"16. Any mechanical failure cause by a fault that existed prior to the commencement of the cover."

[pepperpolo]

Thanks, didn't see that one

Still cannot see how it isn't covered one way or another under warranty or extended warranty.

And also, can a fault exist after the faulting component is replaced (ie replaced under recall)?

[wai]

Thanks, didn't see that one

Still cannot see how it isn't covered one way or another under warranty or extended warranty.

And also, can a fault exist after the faulting component is replaced (ie replaced under recall)?

This is the problem. The warranty and the "extended warranty" cannot be in force at the same time. The extended warranty commences once the warranty has expired.

A fault can be present even though there are no outward signs of it. This is the dilemma, and it is the insurer who determines it, and they have final say. Of course you can take legal action to try and get it enforced, however it will cost you many times more than you would have paid to repair it.

There are laws covering warranty, whereas extended warranty is an insurance and they have a PDS. There is no minimum cover. And don't think that your state Fair Trading office will do anything, Despite what they are called, they do not adjudicate on fairness. Essentially, as long as the provider tells you what they are doing or going to do, then it is OK. As long as they tell you they will screw you, NO Fair Trading office will or can do anything about it. It is up to you to read through the PDS and understand every last bit of it, no matter how it is cloaked in legalise.

This can go on and on, but ultimately it comes down to the buyer. If the buyer feels better because it gives them some peace of mind, then so be it. Just remember it is expensive and you may not be covered for what you thought you were. On things like motor vehicle insurance and life insurance, these are more clear cut. On life insurance, there is a set trigger...you are dead, at which point they have to honour their part of the deal. It is also something that is over many years and so it could be looked on as some sort of enforced savings. On car insurance, the same thing. It's stolen or otherwise rendered useless and they pay out. Even here they will try and weasel out of it. The difference here is that warranty insurance is a can of worms and they are the judge, jury and executioner.

But then look at what happens with superannuation. I did 4 weeks work for a company that insisted on me using their super fund. I never heard anything from the fund managers except less than 12 months after I did the work. This was to tell me that after fees and charges were withdrawn, the balance was less than $0.05, so the account was closed and any balance forfeited. So much for compulsory savings.