Dimension Service Corporation / 3rd Party Auto WarrantyNever buy a 3rd party auto warranty for your used car

Never buy a 3rd party auto warranty for your used car. The big 3 offer aftermarket warranties for their cars and they cost more, but there is a reason. I just had my Ford transmission go at only 10K into the warranty with Amerigard and while they aggreed that the tranmission had to be replaced, they have a cap (in section IV on the warranty) of $2000 no matter what it costs. This car has a CVT transmission which itself was $4400 and of course labor to put it in. It was never mentioned when I bought this policy. They did offer to help out and obtain a used tranny, which is also to my surprise spelled out in the warranty. Spending $1000 on a almost usless warranty has made me realize that even though the Ford warranty would have cost at least 50% more, I would have something which I could count on when something bad happens. Even though I still have 65K miles left on the warranty, I am considering buying a Ford warranty because if I do have another big problem, I will once again be left paying a huge amount for the fix.

Responses

  • Ca
    car guy 43054 Jan 24, 2011

    If the contract has limits of liability, how can you fault the provider?

    0 Votes
  • Ca
    car guy 43054 Jan 24, 2011

    If your contract contains specific language regarding the limit of liability, I do not understand how you can find fault with the provider?

    0 Votes

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