Non Toyota Extended Warranty Opinion

[xdriggs]

When I purchased my 2008 Prius 1 1/2 years ago I was coaxed into buying an extended warranty from a company other than Toyota for about 2 grand and I am now thinking that this was a horrible move especially in light of having not one problem in this period and I am considering cancelling the policy. I would like to ask y'all if this is a good idea or not.
Thanks in advance

[Patrick Wong]

I agree that it would be a good idea to cancel if you can get a refund. However my guess is that the probability that you will actually receive a refund is low to non-existent.

[ceric]

I had experience with 3rd party ext warranty sold thru dealer (BMW). In CA, you can't buy ext warranty w/o going thru dealers (it is a law). Anyway, you are in TX. My experience was that you can probably cancel it (read the booklet of the warranty you have) and the refund would likely be prorated plus a cancellation charge of some amount. No need to buy ext warranty in a hurry. I always consider it before the OE warranty runs out. I decide at the point (1 month BEFORE).

[edmcohen]

Originally Posted by xdriggs

When I purchased my 2008 Prius 1 1/2 years ago I was coaxed into buying an extended warranty from a company other than Toyota for about 2 grand and I am now thinking that this was a horrible move especially in light of having not one problem in this period and I am considering cancelling the policy. I would like to ask y'all if this is a good idea or not.
Thanks in advance

It makes sense to get the extended warranty from an entity that has a stake in upholding the manufacturer's reputation.

[xdriggs]

I believe I can cancel it and the refund is prorated BUT not sure if I get the refund or it is applied to the balance of what I owe on the vehicle. I got it when I was living in Florida and it was a scare tactic against the thousands of dollars that it would cost to replace anything in the Prius. I will probably do it on Monday. I am very curious about how much I will get back. I won't do that again.

[JimN]

If the extended warranty was financed then the refunded premium is returned to the lender if the lien is still on the title.

The answer to the question in your title is: "Run" and "hide". IMO extended warranties on quality vehicles are a waste of money and too many horror stories about 3rd party ones make them poor choices.

[SW03ES]

I don't think that neccisarily the case, I bought the extended warranty on my Lexus and it paid for itself for a few things, a rear main seal leak, a steering rack to fix a looseness, an O2 sensor.

We didn't buy it for the Prius and I kinda wish I had, it has so many rattles and one of the clips for the dash pad is broken over on the right side by the air vent and it sticks up a little. The dash pad is $1,000 to replace and would have been covered by an extended warranty.

You can get the OEM Toyota warranty (I wouldn't buy a 3rd party warranty) for such a low price I think its a good value.

[edmcohen]

Originally Posted by JimN

IMO extended warranties on quality vehicles are a waste of money and too many horror stories about 3rd party ones make them poor choices.

I beg to differ! I can illustrate with my recent experiences--i.e., those in the last twenty years. All three of the cars I have owned during that time had them. My `87 Mercedes 190E-2.3 had an after-market warranty to 100,000 mi., recommended and approved by the dealer. (D-B had 50,000 mi. OEM warranty and no extended warranty program in those days.) The premium was $1,000. The repairs it paid for amounted to about $1,600.

When the Mercedes got rear-ended at 287,000 mi., I purchased a new `01 Honda Civic. For $1,000 I got extension of the warranty to 100,000 mi. Covered replacement of all four struts and a leaking engine oil seal exceeded the premium.

When the `01 Civic got rear-ended at 134,000 mi., I purchased a new `06 Civic. For $1,200 I got extension of the warranty to 120,000 mi. That car is now at 97,000 mi. Covered replacement of the air flow sensor, the heater blower motor and correction of two fluid seepage issues have recovered about $1,000 of that premium.

Currently, I am watching for my opportunity under the current special circumstances to get a bargain in a G2 Prius. I have wanted one for a long time, but did not go for it because it did not "pencil out." With a few thousand miles of extended warranty to convey to whomever I sell the `06 Civic to, I should be able to get quite good money for it. (I might let it stand around until the economy improves and fuel prices are on the rise.) In each instance, I benefited at least psychologically from coverage for the major component failures I thankfully did not have. I hardly think that any car owner could not recover at least a large portion of the premium for a 100,000 or 120,000 mi. extended warranty if he had the "bad luck" to have good luck with the car. It is an altogether different situation from the silly extended warranties one is offered for the lowest-risk part of the life of a home appliance or electronics product.

[SW03ES]

We've got to get you a big sign for the back of your cars that says "DON'T HIT ME!" lol

[richard schumacher]

Extended warranties are always priced to make a profit for the seller, not the buyer. If you made a profit on an extended warranty that was the exception and not the rule.