EXTENDED WARRANTY - Geico's or Toyotas???????

<div class='quotetop'>QUOTE(johnfried @ Dec 21 2006, 11:50 AM) [snapback]365266[/snapback]</div>

Troy, on this site, has a 7yr, 100,000 mile, 0 deductible plan for $990. That's what a lot of us have. Look into it.

(I just looked at it and it is now under the warrantyshack.com heading. I'm not sure if this is still Troy but the deal is the same.)

 

Which is the best deal may depend more on what is covered, or more specifically what is not, than the price. There are a lot of stories about people with extended warranties that find their expensive repair excluded from the coverage. You would need to get a copy of each and spend some time reading them to find out; but I believe the ones sold by the car manufacturer are usually considered the best.

I don't buy them myself but I think the people who buy the one from Troy on this site are not unhappy.

 

<div class='quotetop'>QUOTE(Alnilam @ Dec 23 2006, 02:54 PM) [snapback]366076[/snapback]</div>

That's still Troy through Greenfield Toyota in Massachusetts.

 

Does anyone know what these plans cover and the difference between to two.

 

<div class='quotetop'>QUOTE(LongRun @ Dec 23 2006, 02:49 PM) [snapback]366119[/snapback]</div>

I have no idea what Geico covers but Troy's is the full Toyota plan and is described in every detail on their site.

 

<div class='quotetop'>QUOTE(Alnilam @ Dec 24 2006, 12:30 AM) [snapback]366201[/snapback]</div>

It's usually better and safer to go with the manufacturer's warranty. You would want to get very specific details of what the Geico one covers. Toyota's is "exclusionary" which means it covers ALL components except specifically identified ones, mainly wear items. Geico's can be anything, especially with such a low price. My dealer offered me the 7/100 $0 deductible for $890, so you can haggle if you want to.

 

<div class='quotetop'>QUOTE(johnfried @ Dec 21 2006, 02:50 PM) [snapback]365266[/snapback]</div>

This is how Geico describes Mechanical Breakdown Insurance:

Multi-Risk is a package of coverages that includes Comprehensive, Collision and Mechanical Breakdown (MBI). This coverage protects you from expensive auto repair bills when your car experiences a mechanical failure. Multi-Risk is usually much more affordable than the Extended Warranty offered by your car dealership and in some instances covers more. Varying deductibles are available for the Comprehensive and Collision portions of the package; a $250 deductible applies to the Mechanical Breakdown. You should add Multi-Risk protection to your policy as soon after the car is purchased as possible. GEICO Multi-Risk can only be added if it is a current model year vehicle, the vehicle is less than 15 months old and the odometer reading is less than 15,000 miles, and you are the first title holder. Multi-Risk coverage expires once the vehicle is 7 years old or reaches 100,000 miles.

I looked into it when I first bought my Prius. The $250 deductible is for every repair and the cost I was quoted was around $45 for six months. Where did you get cost of $210?

 

<div class='quotetop'>QUOTE(BobR @ Dec 24 2006, 06:24 PM) [snapback]366418[/snapback]</div>

Didn't say much, did it?

 

<div class='quotetop'>QUOTE(johnfried @ Dec 21 2006, 02:50 PM) [snapback]365266[/snapback]</div>

I just wanted to mention one more thing about the difference between these options--

GEICO's Multi-Risk coverage is a coverage that is added to your normal auto insurance, similar to collision, rental, etc. You pay premium 6 months at a time and the multi-risk coverage only stays in effect as long as your insurance policy is active. So, to keep the vehicle insured to the 7 year mark, you'll have to stay with GEICO for your auto insurance on that car. It is a great company, great service, etc, so that shouldn't be a problem, but it is different than purchasing 7 years of protection up front. Should you do something totally awful and get cancelled [very uncommon], your Multi-Risk coverage would also no longer be available. I'm not sure how you arrived at the $210 price, but the monthly or semi-annual price you were quoted on your new vehicle will go up (I think at 3 and maybe at 5 years), so if it is $3/mo now, it will go up slightly as your vehicle ages. With all this said, it is a truly fantastic coverage at a really great price--its not a trick, just not very many people know about it. I am not familar with the Toyota or Prius Chat extended warranties (I am always extremely skeptical), but I have heard only good things about Multi-Risk (for example, one person had all the oil leak out of their engine after their first oil change--GEICO tracked down a used engine for the car in Texas, had it shipped to New York and installed, thousands of dollars worth of work for only the $250 deductible). As far as I know, no other major insurers really offer any comparable coverage.

When I bought my car, I was all set to get Multi-Risk, but I ended up buying used. If you have a new car, get this--it is really great coverage for a very low price.

--
Hillary

 

<_< Closed the deal on my new 2007 Touring Edition Prius on Nov 11th. The "Finance Manager" assured me that $1,650 [as I recall] was the ONLY price available on the Toyota Extended Warranty - I of course declined and commented that the same Warranty was available all the way up to the end of the 3 year/36,000 mile bumper-to-bumper warranty. She then implied that to be untrue and hinted that there would be extra cost if it was not purchased at the time of the original car purchase - B.S.!!! [I would. however, have to allow that since an Extended Warranty is an "Insurance Policy" of sorts, the price might well increase during that initial 3/36K period]. Without detailing the cost, I did tell her that I could buy the Toyota warranty at a discount - she said "No way, all Toyota dealers charge the same price." She made no hint of a discount.

If, when, I purchase an Extended Warranty, I would first get complete information on what *IS* and *IS NOT* covered [there are a few surprises even on the Toyota warranty] and price shop. PriusChat seems to be by far the best deal available at this time.

 

<div class='quotetop'>QUOTE(heavenleigh @ Dec 27 2006, 01:19 AM) [snapback]367060[/snapback]</div>

I still confused over the specifics of the plan. The "losing all the oil after an oil change" example has me wondering what sort of exceptions fall under "negligence."

Also, does "their first oil change" mean the car was brand new, or I'm assuming it was used and they'd just bought it...?

Finally, do you know for a fact that it covers all the expensive hybrid gymcrackery? It seems so much cheaper than anything else out there that I can't help but wonder what's missing.

I think insurers are like casino operators: the house always comes out on top.

 

<div class='quotetop'>QUOTE(Pinto Girl @ Dec 28 2006, 02:24 PM) [snapback]367725[/snapback]</div>

When I looked at it I decided it was not a good deal. It is $45 every six months so $90 a year.
This turns out to be $630 for 7 years.
What was the deal breaker for me was the $250 deductible on ever repair. If two things are wrong at the same time, that's $500. I bought the Toyota insurance through PriusChat.

 

<div class='quotetop'>QUOTE(johnfried @ Dec 28 2006, 03:26 PM) [snapback]367768[/snapback]</div>

I wonder why it is so much cheaper for you?

 

<div class='quotetop'>QUOTE(BobR @ Dec 28 2006, 02:37 PM) [snapback]367737[/snapback]</div>

The $250 deductible does seem a bit high...and I'd be curious how, exactly, they decide when to double or treble the deductible, based on how many problems there are...

Reminds me vaguely of my Ford extended warranty, where (for example) the module and the actuator would be covered, but the wire between wasn't, and since it was the connector on the (cheaply sourced) wire which went bad and caused the module to burn out and the actuator to seize, the warranty didn't cover the repair.

Need WAAAAAAY more info on the Geico plan to even consider it. Still can't see why a car insurance company would get into the maintenance contract business, unless it KNEW that it was a winner.

 

<div class='quotetop'>QUOTE(Pinto Girl @ Dec 28 2006, 02:24 PM) [snapback]367725[/snapback]</div>

Hi Pinto--
You can purchase Multi-Risk coverage on any vehicle you purchased new from the dealer (you are the original owner) I belive until it has a certain number of miles on it. In the case I describe above with the oil leaking out, I belive the exclusion for "intentional damage" and "improper maintenance" would not apply since (in this case) it was not the vehicle owner but rather a shop that performed the negligent oil change (you'll note that Jiffy Lube excludes any liability for their shoddy work in the papers you sign).

Per the webpage:

Better Than An Extended Warranty
GEICO’s MBI provides better coverage and is cheaper than the typical dealer extended warranty. MBI coverage:
Includes all parts and systems-not just the specific list of items covered by most dealer warranties.

Per the above, I am sure this covers everything for the vehicle you insure. Premiums vary by vehicle and state and vehicle age (note to other posters, when you are calculating total cost it is not just your initial premium for seven years). It would be unfair to compare premiums for different vehicles in different states, just like normal insurance.

Regarding a comment below that they are not sure why this coverage is offered--it is a service that customers want. They do make money on it, and it really is a great coverage, I am not sure why other extended warranties are so expensive.

I would highly recommend you at least consider it when purchasing an extended warranty, and call geico at 1-800-861-8380 and they can answer any additional questions.

 

<div class='quotetop'>QUOTE(heavenleigh @ Dec 31 2006, 08:30 PM) [snapback]369108[/snapback]</div>

Still curious...

Why is it that if the shop makes a boo boo, the warranty will cover the fix...but if I do the work myself, it WON'T???

The more I think about it, the more of a bummer this becomes.

Seems to me that the GEICO warranty does NOT cover any work that the owner does to her own vehicle? A ginormous slippery slope, IMHO.

Oh, and I was wondering...do you work for GEICO, or have any financial interests in GEICO, or the warranty product that we're discussing?

Providing an 800 number is almost too good to be true...

 

<div class='quotetop'>QUOTE(Pinto Girl @ Jan 2 2007, 03:26 PM) [snapback]369689[/snapback]</div>

I am not sure that they wouldn't cover losses for work that the owner does themselves, it depends what the definition of "improper maintenance" is. The one example I gave about getting a new engine was a situation that happened to a friend of mine.

I do work for Geico, however I do not work in any area dealing with this coverage, and I certainly am not representing the company or giving a professional interpretation of causes of loss. All the info I posted above was from information from friends who have experience with this coverage. Like I said, I am a policyholder and I was 100% going to get this coverage for my own vehicle and I know lots of other employees with the coverage who have been happy (and believe me, we are the first to criticize when something goes wrong). I pulled the 800 number off the webpage. I just wanted everyone to understand that the structure of this product is slightly different than an extended warranty you might by on here or from a dealer; they have different costing structures and provisions. I'd really consider the coverage (it is low-risk, if you try it and decide you don't like it a month later you can cancel Multi-Risk coverage and only have paid a few dollars, and you can always buy the one off PriusChat for some period of time after you buy your car).

 

Reopening a seemingly dead thread... I am going with Geico's coverage (instead of the extended warranty) on my new Prius, when it arrives.

Here's the clincher for me - I can take the car anywhere to get warranty service, not just a Toyota dealer. I have a good relationship with my mechanic, something that's very hard to come by - and I would much rather bring my new vehicle to him than anyone else, even a dealer.

Also, I was quoted the $15 every six months rate - to me, even if I have to pay the deductible twice, I still come out ahead - and I am banking that my Prius will be as reliable as most of the rest of them...

Geico, by the way, told me their warranty was bumper-to-bumper, excluding rust and wear-and-tear... something that's usually excluded from other warranties/policies as well, from what I can tell.