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Serious question, a finance guy at my credit union said only 12 percent of extended warranty claims get paid in full, is that real?
I was sitting in the lobby at my credit union in Mesa last Tuesday waiting to sign some papers and got talking to one of the loan officers there. He said he used to process auto loan add-ons and that in his experience, only about 12 percent of people who buy an extended warranty ever get a claim paid out at the full amount they were promised. I asked him where that number came from and he pulled up some consumer report on his phone, said it was from a 2023 study that looked at thousands of contracts. What got me was his next point, that most denials happen because people miss the fine print on maintenance records, like needing every oil change logged at a shop within 500 miles of the interval. My brother bought a 6 year plan on his Tacoma in 2021 and got turned down last month for a water pump since he did one oil change himself in his driveway. So now I am second guessing the $2,100 quote I got for my own car and wondering if that money is just gone if anything breaks. Has anyone here actually gotten a full payout on a repair, and if so what did you have to do to make it happen?
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cameronb5221d ago
Man, that 12 percent thing sounds about right from what I've seen, the trick is you gotta keep every single receipt and never do your own oil changes if you want them to actually pay up. Save that $2,100 unless you're fine eating the cost when they find any excuse to deny you.
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