My wife owns a 2005 330xi with about 45000 miles, so we have about 5000 miles remaining on the factory warranty.
I am interested in purchasing a bumper-to-bumper extended warranty that would cover up to at least 100,000 miles and 4 additional years. Coverage to 125,000 with 5 years would be even better. Her car is AWD and has GPS navigation, so we want those features covered.
I have gotten quotes from several companies including Mercury General, Warranty Direct and Nationwide Insurance Group. The prices range from about $3,000 to $3,500.
Does anyone have an experience with these insurance companies?
Please give me any recommendations, companies to avoid and things to look for.
Talk to your dealer about the extended warranty offered by BMW. The price will probably be similar, but it works at any dealer and you never have to deal with any insurance company.
According to the insurance companies, the dealer calls them and gets authorization, they give them a credit card number, and the payment is made directly to the dealer before we pick up the car. So we don't have to file any insurance papers.
Actually, now that I think about it, the stereo was not covered by the extended warranty from BMW, so I'm not sure if the GPS would be either. So, in your case you may be stuck with having to go through a third party company. Regardless of which one you go with, you should be able to negotiate pretty hard on price.
You should also look into getting the service package which charges a flat fee upfront for services out to 6 years/100K. That is definitely worth it as it covers 2 oil changes, an inspection II, and all wear and tear stuff.
I've not come across any aftermarket insurance scheme that doesn't have exclusions and conditions. They tend to promise the earth but rarely deliver. BMW will be in a better position than most to assess the actual costs of running such a scheme so if I had to I'd go with them.
But like all these things it's a gamble where as always the punter looses overall. Personally, I'd salt the cost of the premium away in a high interest account and use that money to pay for repairs as required.
However, if you go for an insurance ask a couple of questions and get the reply in writing.
Do they have a limit on labour rates, and what is it? Do they have a limit on a single claim and what is it? Do they allow you to use *your* favourite dealer? Will they pay for other fault(s) arising from the original all in one claim? Does a repair under this warranty include consumables like oil, etc?
That's why I'm asking for recommendations. The best policies cover everything except for exclusions such as rust damage, body seals, windshield damage, repairs due to manufacturer recall, hoses, seats, mirrors, paint, lights, fuses, shop supplies, brake pads and rotors, shock absorbers. Pretty much everything else is covered.
Yes, I understand how insurance companies make money. However, the potential repair costs are so high that I think it may be worth it. I own a 2001 Infiniti QX4. The original warranty ended at 60,000 miles, and around 80,000 miles the factory GPS navigation unit started to go bad. I took it in for service, and the dealer explained that they don't repair navigation units, they just replace them with a new $5000 unit. (The incremental cost for navigation when I bought it new was $2000.)
I haven't nailed down the answers to all of these questions, but I know some of them:
No limit.
No limit.
Yes, any dealer.
Yes. There is a single deductible of $0/$50/$100 per visit (not per problem) depending on the policy. Dropping the deductible from $100 to $50 only adds $75 to the cost of the policy, so if we have at least two service visits, it pays off. Dropping the deductible to $0 adds several hundred dollars.
Yes, if it is part of a repair. No, if it is regular maintenance.
Most of the policies include coverage for tire damage due to road hazards, towing fees and up to $180 per visit for a replacement rental car while your car is in the shop.
I'd second that suggestion - the factory extended warranty (which can only be sold to the original owner of the car while the car is still under the original warranty) is obviously the most inclusive. Bumper to bumper as you say.
What it doesn't include is "Maintenance" items - which have been covered by your maintenance policy with the new car. This can also be purchased from BMW as an extension - and has the same coverage as your current plan. Any owner can purchase this - as long as the vehicle is still under the factory maintenance plan.
Both of these add 2 years and go to 100k miles to the existing plans.. ie - 6 years from "in-service date" and 100k miles from "in-service mileage". If you don't remember these numbers - the dealer can pull them up for you.
The total of the two is likely to be around $5,000. To me - it's questionable if the value is there since I know I can get most maintenance and repairs done for less than that total IF nothing big breaks. If something like a transmission goes bad - then the policies will seem to be a bargain.
There is no deductible on either program.. and as noted - any dealer can honor these.
When I bought the extended warranty, there was a $50 processing fee each time I use it. I've used it twice so far - once for the control arm bushings and the other for the last stage of the airconditioning unit. There were a couple of times where the dealer waived the deductible (but I still needed the warranty) -- the moonroof assembly went loose and I couldn't close the visor, and the airconditioning system needed recharging.
What you "bought" was not the BMW warranty extension - it may have been a CPO warranty (which has a $50 fee) or an aftermarket warranty. The BMW warranty extension is exactly that - an extension of the original factory warranty - which has no processing fee or deductible.
I spoke to the sales manager at my local BMW dealer yesterday regarding extended warranties. He said they offer two warranties: (1) a BMW warranty that is honored at any BMW dealer, and (2) a 3rd party warranty that only they accept. He said they do not accept any other 3rd party warranties, so we would have to file claims.
The BMW warranty on our 2005 330xi extends the coverage to 100,000 miles and 6 years from the time when the car was put in service. He said that it provides the same bumper-to-bumper coverage as the original warranty except maintenance items are not included. The cost is $2875, and it has a $50 deductible per visit. A maintenance contract is available for an additional $1800.
The $50 is something new.. wonder when BMW added that fee. From the BMW-NA website:
for up to 6 years or 100,000 miles for coverage of mechanical breakdowns.
an appointment with an authorized BMW center where a specially trained, BMW certified technician will make the repairs using original BMW parts. This will guarantee that your vehicle will be repaired to meet our specifications and you can be confident that your BMW will be just as thrilling to drive after a repair, as it was before.
MotorsForum website is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.