Extended Warranty - Deal, or No Deal?

[Kao]

I read the fine print. Note they state this is not a warranty but rather a service contract. The distinction may be a bit subtle. After that, the things that stood out for me were:

1) Only repairs that are necessary as the result of a mechanical breakdown (as defined in the contract) are covered.
2) Normal wear and tear items, eg, bulbs, batteries, brake shoes, ... are not covered (no surprise there.) Rubber parts like hoses and weather stripping that decay over time - but don't actually "wear" through use - are likewise not covered. Exhaust system parts also are not covered.
3) You must maintain the vehicle in accordance with the manufacturer's owner's manual, and be able to prove it with receipts.
4) Except in an emergency, you must first get approval before bringing the car in for repair anywhere other than the selling dealer.
5) You must retain all parts replaced in the event FWS wants to inspect them prior to settling a claim.
6) The warranty includes alternate transportation and hotel benefits if your car breaks down and you are stranded or left without transportation for a short time.

(FWS=Fidelity Warranty Services)

My guess is you are likely covered if you maintain your car (including keeping good records), and through no fault of your own it suffers a clear and significant major-system failure, eg, engine, transmission HVAC, or electrical. My feeling is catastrophic failures are hard to argue. And like any other service contract, it's only as good as the company backing it. In this case that's FWS. Unfortunately I don't have any first hand experience with them to be able to comment, but I'm somewhat encouraged by the fact that Kia puts their name on it. That said, I'd be happier if this was truly an extension of the new car warranty backed by Kia.

Since Kia of Muncie seems to be selling quite a few of these extended policies, maybe @Jason Fox can address point number 4 above stating you need approval first from the selling dealer to take your vehicle to another dealership for repair? Or maybe he can have his warranty guy address these concerns for this thread.

 

[tom1016]

Has anyone ever used or priced companies like carchex or endurance? I’m wondering if those are good options.

 

[First]

Since Kia of Muncie seems to be selling quite a few of these extended policies, maybe @Jason Fox can address point number 4 above stating you need approval first from the selling dealer to take your vehicle to another dealership for repair? Or maybe he can have his warranty guy address these concerns for this thread.

Myself, I wasn't put off by 4). I'm sure FWS readily authorizes repairs at other than the "selling dealer." That said it's not clear whether you must use a Kia dealer, and it's also not clear whether the selling dealer they are referring to is the one that sold the car, or the service contract?

What concerns me is the language regarding your obligation to maintain the car. I'm sure something similar is in every service contract, but it seems to me it provides the opening to dispute most any claim as being a failure on the owner's part not to have recognized and done something sooner to prevent the breakdown.

 

[First]

Hmmm. I wish it were just "breakdown" and not specifically "mechanical breakdown". Perhaps I'm overly sensitive to that modifier because of a past experience. My homeowners insurance had something called Appliance Breakdown Coverage which supposedly covered all of our appliances in the event of a failure or breakdown. It read a lot like the fine print shared here. When we had a kitchen stove go out, the cause turned out to be a failure in the electronic control board. The coverage was originally denied because it was deemed electronic, not mechanical. The onus was also on us to prove faulty workmanship, which was challenging to prove. Because the electronics powered up, they claimed there was no breakdown, even though they didn't operate appropriately. I eventually won in small claims court, but what a pain. I'd love to hear from folks who have had this sort of auto warranty before, on Kia or other types of cars. Have people had good experiences with actual claims?

I'm not too concerned on this point. "Mechanical Breakdown" is defined as "the failure of a "Covered Part...," and Covered Parts broadly includes electrical parts. That said, your experience is exactly the sort that concerns me, ie, when the situation or circumstances may not be black and white and you get into an argument over what is and isn't covered. Those arguments are nearly impossible to win, and your story is living proof!

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[zamboni]

But the factory installed audio/security IS covered, according to that warranty. So unless you have an "outside installation" of audio or security, sounds like it's covered to me.

That's exactly right, @Kao . I copied this sentence to reinforce that factory installed audio/security IS covered. It has been one of the most requested features for those whom are looking for extended coverage.


Z.

 

[vinylhaircut]

More thoughts. A breakdown is defined as one of two things: faulty workmanship or materials supplied by Kia, or a gradual reduction in operating performance as a result of normal wear and tear. To me, this is the difference between a warranty and a service contract. Many people, including me, have been interested in one of these policies because there are so many electronic and computer-related components in the car. I'm not really worried about *electrical* parts (things like motors and switches, which are listed). It's *electronic* parts (circuit boards, etc.) that are more concerning to me. Those are not specifically mentioned, and those are expensive repairs.

Let's suppose that one of the Telluride's driver assist technology features (e.g. Head Up Display or Lane Keeping Assistance) stops working correctly. If I'm still under warranty, the underlying reason doesn't really matter - Kia has to fix it regardless. But after warranty, with this contract, things are different. Normal wear and tear does not really apply to electronic components, so I'll have to prove that there was faulty workmanship or materials. I believe that "workmanship" generally refers to the manufacturing process. If it's a problem with the design, that's usually not part of workmanship. But if I have a flaky electronic issue, if may be difficult or impossible for me to prove exactly what the underlying cause is. Is it a materials issue or was it designed poorly? If a board fails, is that a *faulty* material or just a normal lifespan? Maybe the company will be honorable and not quibble over this sort of thing, but it does give me pause. If you read the Consumer Affairs reviews (like is in post 18 of this thread), there are both positive and negative comments associated with the company.

 

[First]

More thoughts. A breakdown is defined as one of two things: faulty workmanship or materials supplied by Kia, or a gradual reduction in operating performance as a result of normal wear and tear. To me, this is the difference between a warranty and a service contract. Many people, including me, have been interested in one of these policies because there are so many electronic and computer-related components in the car. I'm not really worried about *electrical* parts (things like motors and switches, which are listed). It's *electronic* parts (circuit boards, etc.) that are more concerning to me. Those are not specifically mentioned, and those are expensive repairs.

Let's suppose that one of the Telluride's driver assist technology features (e.g. Head Up Display or Lane Keeping Assistance) stops working correctly. If I'm still under warranty, the underlying reason doesn't really matter - Kia has to fix it regardless. But after warranty, with this contract, things are different. Normal wear and tear does not really apply to electronic components, so I'll have to prove that there was faulty workmanship or materials. I believe that "workmanship" generally refers to the manufacturing process. If it's a problem with the design, that's usually not part of workmanship. But if I have a flaky electronic issue, if may be difficult or impossible for me to prove exactly what the underlying cause is. Is it a materials issue or was it designed poorly? If a board fails, is that a *faulty* material or just a normal lifespan? Maybe the company will be honorable and not quibble over this sort of thing, but it does give me pause. If you read the Consumer Affairs reviews (like is in post 18 of this thread), there are both positive and negative comments associated with the company.

The policy that Muncie is offering (pdf posted somewhere above) covers everything that's not excluded, and electronic components like those you mentioned above are not excluded (so should be covered.) While I tend to believe that if an electronic component fails over time it will be covered, I too am at least slightly concerned they can deny coverage (for any repair for that matter) simply because they can, and then I'm left to argue the point. This is where knowing the company's reputation becomes important.

 

[vinylhaircut]

I agree with you. It's important to note that the contract covers a *breakdown*, which is not the same as any type of failure. Even if they deny claims, a person who is persistent or (as in my previous case with appliances) willing to argue and even go to court may still win, but that's not something that appeals to everyone. It's a bit hard to gauge right now and I'm not sure there's a clear answer. Regardless, it's important for people to go in with eyes open, and realize that the contract is not simply an extension of the Kia warranty.

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[First]

I agree with you. It's important to note that the contract covers a *breakdown*, which is not the same as any type of failure. Even if they deny claims, a person who is persistent or (as in my previous case with appliances) willing to argue and even go to court may still win, but that's not something that appeals to everyone. It's a bit hard to gauge right now and I'm not sure there's a clear answer. Regardless, it's important for people to go in with eyes open, and realize that the contract is not simply an extension of the Kia warranty.

I agree 100%.

 

[noles1983]

Just paid for the extended warranty/service contract with Craig over at Muncie. Easy peasy, peace of mind for 10 years now.

 

[Chief]

Looking for advice on extended warranties with respect to Tellurides. It's too soon to have good data on how well they will hold up. My dealer is offering 10year/100K mile bumper to bumper warranty with roadside assistance, rental car, trip interruption insurance, the whole nine yards for $2000. Deal, or no deal?

That is a good deal. But try endurance warranty just to get a feel of what others are charging.

 

[WaxZ28]

I'm not too concerned on this point. "Mechanical Breakdown" is defined as "the failure of a "Covered Part...," and Covered Parts broadly includes electrical parts. That said, your experience is exactly the sort that concerns me, ie, when the situation or circumstances may not be black and white and you get into an argument over what is and isn't covered. Those arguments are nearly impossible to win, and your story is living proof!

Here's the language of my Smart Autocare Advantage Care Wrap policy definition of "Breakdown/Mechanical Breakdown":

"The definition of Breakdown means the failure of a covered part under normal service due to defects in material or workmanship. A covered part has failed when it can no longer perform the function for which it was designed solely because of its condition and not because of the action or inaction of any noncovered parts."

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[BLACKAWD]

I agree with you. It's important to note that the contract covers a *breakdown*, which is not the same as any type of failure. Even if they deny claims, a person who is persistent or (as in my previous case with appliances) willing to argue and even go to court may still win, but that's not something that appeals to everyone. It's a bit hard to gauge right now and I'm not sure there's a clear answer. Regardless, it's important for people to go in with eyes open, and realize that the contract is not simply an extension of the Kia warranty.

You can't sue in small claims court or join a class action with this extended warranty. You're bound to arbitration in Fidelity/Courtesy's jurisdiction in Florida. And who do you think pays the arbitrator over and over?

 

[ags28]

OK, please educate me here. One of the reasons I'm going to buy a Kia is the great warranty they offer. What's up with buying an extended warranty when the car already HAS a 10yr/100k mile warranty? I bought one for my Porsche after the factory warranty expired, but Tellys are new cars. Please explain. Thanks.

 

[Bossman-Don]

OK, please educate me here. One of the reasons I'm going to buy a Kia is the great warranty they offer. What's up with buying an extended warranty when the car already HAS a 10yr/100k mile warranty? I bought one for my Porsche after the factory warranty expired, but Tellys are new cars. Please explain. Thanks.

That's only for the powertrain

 

[ags28]

got it. that's my main concern anyway.

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[First]

OK, please educate me here. One of the reasons I'm going to buy a Kia is the great warranty they offer. What's up with buying an extended warranty when the car already HAS a 10yr/100k mile warranty? I bought one for my Porsche after the factory warranty expired, but Tellys are new cars. Please explain. Thanks.

Purchasing an extended warranty, or in this case a service contract, is a personal decision (lots of opinions above), but note Kia’s basic warranty is 5years/60,000miles. 10/100k is limited to the powertrain.

 

[tom1016]

Purchasing an extended warranty, or in this case a service contract, is a personal decision (lots of opinions above), but note Kia’s basic warranty is 5years/60,000miles. 10/100k is limited to the powertrain.

The electronics, radio, nav. etc.. is only 3/36000

 

[MCHOTARD1]

So I just bought a 2021 SX Kia Telluride Nightfall Edition prestige package was offered the extended warranty for 10 years 0 deductible for $1835. The company they use is called Assurant... they assure me that this company is the best as far as warranties go...
Should I buy it or look around for better pricing?

 

[MCHOTARD1]

So I just bought a 2021 SX Kia Telluride Nightfall Edition prestige package was offered the extended warranty for 10 years 0 deductible for $1835. The company they use is called Assurant... they assure me that this company is the best as far as warranties go...
Should I buy it or look around for better pricing?

I bought it in the color everlasting silver and I love everything about it!