Just bought a tranny & engine warranty

[curlykicker]

I've got a '92 with 142k miles on it. I just sent in my check for $589. I'm getting it straight from the underwriter so the price is a lot cheaper than my first quote of $924. It's good for 5 years or 100,000 miles. The underwriter has been in business for awhile and no complaints have been filed with the BBB. There are some catches though. The tranny is covered only up to $2000 and the engine is covered to $3000. Labor is covered up to $50/hour. I have to have the engine oil and filter replaced and the tranny fluid checked every 4000 miles by an ASE mechanic. Also, any mods done with the tranny and engine have to have been done by an ASE mechanic. Also, I can't file a claim for the first 90 days and 1200 miles from the start. Other than that, it looks pretty good. It should save me atleast $1000.

Curly

[curlykicker]

Yeah, sorry I forgot to post the web site address. Here it is: http://www.premium2000.com/

[curlykicker]

The only reason I can think of for getting it so cheap is that I've found the source of the warranty. I'm no expert on warranties or insurance but as far as I can tell it's like this: Usually everyone buys their car insurance from an insurance agent, not striaght from the company. That insurance agent takes a percentage cut from whatever you purchase. That's how they make their money. In my case, I first went to an "agent" and they quoted me $924. I requested a sample of the contract. That contract listed a company by the name of "Gateway Management Services" as the "authorized administrator" of which I had to file any future claims through, not the agent I bought the warranty from. The address was listed but their phone numbers were blocked out. I called up the agent to confirm that it was Gateway Management Services that I would be dealing with, not them, when filing a claim. So I got the phone number from the agent and called up Gateway, essentially to get more phone numbers for other agents so I could shop around. I was transfered to Bart (800-622-2164 x109) and he offered to sell the warranty to me straight from the company for $589. From that you can figure that the agents are making over $300 for each one they sell. So if anyone's interested call up the aforementioned number and ask for Bart. His extension is 109 and is in his office until 5pm EST. You can also go to www.premium2000.com .

There are some things I ask of you all. First, please don't call until the afternoon on Monday. That way originator of this deal (me!) doesn't get snuffed by a bunch of overly anxious SVX owners :-) who might cause Bart to get suspicious and not sign up any of us. Second, please DON'T MENTION ANYTHING ABOUT THE SVX'S TROUBLED TRANSMISSION!!! I know that's a no brainer but I had to mention it.

In my next post I will discuss why you might want to go through an agent instead of Gateway direct.

Curly

[curlykicker]

The warranty that can be found in my briefcase is the warranty that was sent to me from the agent. It apparenty is slightly older than the one I'm going to be using with Gateway. There have been some additions made to the warranty that actually might make the older one more economical even with the agent's $335 "surcharge". The new one from Gateway says that they will pay up to $50/hour for labor. The old warranty from the agent does NOT have that stipulation. DRW Transmission says it's going to take atleast 12-15 hours to rebuild the tranny and they charge $70/hour. So that's atleast $240 that I'll have to pay out of pocket for labor, for each tranny rebuild. So after one rebuild I'll still save $95 ($335-$240) by going with the new warranty. But if I need another rebuild in the future then I will have to start paying MORE for the warranty then if I had bought it from the agent. In fact the 2nd rebuild will cost me $145 extra over the older one. A 2nd rebuild is quite possible considering that the warranty is good for 100K miles or 5 years. And these calculations don't even consider any labor charges for an engine rebuild.

Curly

i know this post is from alomost a year ago.. i would like to know if you can provide the info of that agent/company that gave you 5 years/100k seems pretty good to me.. i just signed up for a 24 months 24k for $1300 (engine, tranny, electrical, AC) it seems a lot but im sure that a new tranny would cost more than that.

i want to compare and see the real deal with that..

Question is 5 years 100k begining

thanks.

Hmm.. Curly hasn't posted since 7/1/02. Your numbers don't sound bad for a '92 with 125K. I'm sure others will chime in...

if only my car was under 125k i could have gotten a better deal.. and much better if it was under 100k..

his warrany only covers engine and tranny.. nothing else.
the one i got has a co pay (deductible) of $100 per claim.

[curlykicker]

I'm a little confused. What was it that you needed to know Kamaleon?

Hey Curly, i Wanted to know if you got that warranty that you mentioned and if you did, how is that warranty holding?? have u got to use it yet?

I just got a call from one of the agents and quoted me $684 for 5 years or 100k engine, transmission transfercase. With this figure he didnt mention any limitation on hourly rate nor maximum coverage per insident. For the first 90 days and 1200 miles no claims can be filed.

Also you can get this warranty for any model year and millage.

For anyone that is afraid about its transmission, 5 years and 100K on top of current odometer is a pretty good deal for that money.

[vkykam]

What does either of the warranty cover, guys?

VK

The $684 only covers Engine, Transmission and Transfer case for 5 years and 100K from current odometer. Premium2000plus.com 1800 622 2164

The $1300 quote is for an svx with 125k From continental Warranties (1888 244 0925), it covers electrical parts, tranny, engine, AC, transfer case, and maybe something else. This is for 24 months or 24k.

i really think that for a well taken cared svx the only concern would be the tranny issue (and berings) im pretty sure ill cancel my 1300 subscription and get the $684.

The premium 2000 plus warranty requires you to change your oil every 4000 BY A CERTIFIED MECHANIC, AND TO HAVE ALL YOUR SERVICE DONE BY THEM. Also, you have to put some premium 2000 stuff in your oil I think, they send it to you. I thought about it, but the big issue with me and the warranty was just something to get me through the first year, and their waiting period was too long.

cant be perfect.
90 days and 1200 miles is a long waiting period (3 months) but then again the parts are covered for 5 years/100k.. The oil change issue, have it done and keep the receipts, cost is about $10 more from doing it ur self (labor).. got to take the good with the bad..

If you have under 100k there is an other company that will do 4 years for about a grand and it cover many more parts.

[curlykicker]

The final line in the contract (which is in my locker) states: "Repairs or replacements must be completed by an ASE or ATSG Certified repair shop."

But the actual contract that you will receive states: "Repairs or replacements must be completed at our at our negotiated labor rate by an ASE or ATSG Certified repair shop."

That labor rate is $50/hr according to Bart.

I haven't used the warranty yet but it's a good sign that they're still in business and still offering it Looks like the price has gone up though.

[curlykicker]

Getting the oil changed isn't any big deal. Just go to an ASE certified shop to get it done and you're fine. I get mine done for $10, not much more than it would cost me to do myself. And yea, 4k miles is too soon to change the oil, but atleast you know your engine ain't gonna conk out by neglect.