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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > General E90 Sedan / E91 Wagon / E92 Coupe / E93 Cabrio > BMW Ext Warranty - No Refund if claim made!!



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      02-20-2013, 11:11 AM   #1
Fun w/N54
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So the finance guy at the dealership checks into how the refund proration on a BWM ext warranty is calculated if any claims were filed. His response was there is no refund.

I was looking to grab a 84mo/100 gold plan in the near future and keep the car another year or year-half then have something to offer next owner if decide to sell private. If selling at carmax or trading it in I 'assumed' I would get some proration if I cancelled it.

Is this consistant with most ext warranties?
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      02-20-2013, 12:16 PM   #2
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Ask to read the contract.
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      02-20-2013, 12:36 PM   #3
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I just read up on easy care and they have a 30 day refund if no claim is made within those 30 days. I'm not sure as to whether there is a prorated refund from EasyCare.

What do you mean have something to offer the next owner? Like you would give them the money from the refund? I think having the warranty on the car is more than enough to offer a buyer of the vehicle.
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      02-20-2013, 12:44 PM   #4
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The wording in the sample contract did not specifiy my scenario from above so I asked the dealer for clarification. Contract only described within 60 days and No Claims (full refund) and after 60 days and No Claim (prorated refund).
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      02-20-2013, 01:10 PM   #5
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Something to offer next owner = piece of mind with this level of converage. Gold and Plat plans through BMW only available for purchase if within the 4y/50k.

Down the road when I sell it, for people looking, Car X at dealer with CPO will look a LOT more attractive than Car Y, private party, As-Is.
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      02-20-2013, 01:46 PM   #6
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Originally Posted by Fun w/N54 View Post
Something to offer next owner = piece of mind with this level of converage. Gold and Plat plans through BMW only available for purchase if within the 4y/50k.

Down the road when I sell it, for people looking, Car X at dealer with CPO will look a LOT more attractive than Car Y, private party, As-Is.
Yes, I understand that. But if you are saying you want to buy the warranty and then be able to possibly get a prorated refund, I'm not sure how that plays into your plan to have something to offer next owner. If you want something to offer next owner just buy the warranty and don't worry about a refund. That is what I am doing this week with mine. Have you gotten a quote on the gold/platinum plans? If so I would be interested to know. I was quoted $3500 for gold and $3900 for platinum for 84M/100K.
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      02-20-2013, 02:52 PM   #7
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If you make a claim and want to cancel there is no refund. If you cancel within 30 days with NO CLAIMS you get your money back. after 30 days you get a prorated amount back if NO CLAIMS have been filed.
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      02-20-2013, 04:00 PM   #8
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Originally Posted by ericfox11 View Post
Yes, I understand that. But if you are saying you want to buy the warranty and then be able to possibly get a prorated refund, I'm not sure how that plays into your plan to have something to offer next owner. If you want something to offer next owner just buy the warranty and don't worry about a refund. That is what I am doing this week with mine. Have you gotten a quote on the gold/platinum plans? If so I would be interested to know. I was quoted $3500 for gold and $3900 for platinum for 84M/100K.

Gold quote was 3390 and Plat 3880 so yes pretty close. What I'm saying is I would like to have the option to transfer warranty to new owner if private party sale OR cancel it if forced to trade in. I may only keep car another year or so and based on the BMW policy, if I make ANY claims I'm entitled to $0 prorated refund. Be aware that this clause is also in effect if your car is totaled along the way and a claim was previously made.
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      02-20-2013, 04:39 PM   #9
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I paid $3400 for warranty and I get zip back if I don't use it... (that being said, it's for 200k kms with no time limit on it... )
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      02-20-2013, 04:53 PM   #10
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Originally Posted by Fun w/N54 View Post
So the finance guy at the dealership checks into how the refund proration on a BWM ext warranty is calculated if any claims were filed. His response was there is no refund.

I was looking to grab a 84mo/100 gold plan in the near future and keep the car another year or year-half then have something to offer next owner if decide to sell private. If selling at carmax or trading it in I 'aussumed' I would get some proration if I cancelled it.

Is this consistant with most ext warranties?
Guys, it not the warranty company that deems the cancellation policy its the state that you reside. I see your in Wisconsin, the state has a insurance cancellation policy based on pro-rata time or miles which ever is greater plus a small cancellation fee. You do have 100% cancellation within the first 30 days with no fee unless a claim was paid. Any questions please ask. I was a VP at a warranty company.
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      02-20-2013, 05:38 PM   #11
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Guys, it not the warranty company that deems the cancellation policy its the state that you reside. I see your in Wisconsin, the state has a insurance cancellation policy based on pro-rata time or miles which ever is greater plus a small cancellation fee. You do have 100% cancellation within the first 30 days with no fee unless a claim was paid. Any questions please ask. I was a VP at a warranty company.
But your statement about pro-rated is only valid, per dealer finance guy, if no claims are filed. Based on the posts on here a 'few' things can happen after 50k+ miles. So potentially I could shell out almost $4k on day x, then have one small claim day x + 30, then car get totaled out in accident on day x + 31. Contract is cancelled and pro-rated refund = $0.

I could see if they deducted the amount of claim(s) off the top from the purchase price and then pro-rated the remainder.

Appreciate everyone's input.
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      02-20-2013, 05:47 PM   #12
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Quote:
Originally Posted by Fun w/N54 View Post
But your statement about pro-rated is only valid, per dealer finance guy, if no claims are filed. Based on the posts on here a 'few' things can happen after 50k+ miles. So potentially I could shell out almost $4k on day x, then have one small claim day x + 30, then car get totaled out in accident on day x + 31. Contract is cancelled and pro-rated refund = $0.

I could see if they deducted the amount of claim(s) off the top from the purchase price and then pro-rated the remainder.

Appreciate everyone's input.
Same as car insurance if you drive without accident for one year they will not give back the premium. It is a crapshoot.
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      02-20-2013, 05:52 PM   #13
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Originally Posted by Fun w/N54 View Post
But your statement about pro-rated is only valid, per dealer finance guy, if no claims are filed. Based on the posts on here a 'few' things can happen after 50k+ miles. So potentially I could shell out almost $4k on day x, then have one small claim day x + 30, then car get totaled out in accident on day x + 31. Contract is cancelled and pro-rated refund = $0.

I could see if they deducted the amount of claim(s) off the top from the purchase price and then pro-rated the remainder.

Appreciate everyone's input.
All warranties have to be submitted to the states insurance commission in order to be valid in that state, It falls under insurance regulation. You can cancel the warranty even if you filed a claim! sometimes the warranty company loses and sometimes they win....ALOT! Insurance regulation mandates they pay out a minimum of 30% of premiums in claims. most companies struggle to payout that much...yes, there are loopholes and ways around that but even still 20% is alot of dollars!
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      02-20-2013, 05:56 PM   #14
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Guys, remember too...the finance guys have an incentive not to cancel either.....they also get charged-back there commission. But all and all warranties are a must and are well worth it with todays autos.....I dont want to be at the mercy of the service writer especially at BMW to tell me wether its going to be $2000 or $3000.
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      02-20-2013, 08:50 PM   #15
Fun w/N54
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Just got a quote from Carchex for little over 3k, or 900 less than BMW Plat Plan, for their best plan. And the DO provide pro-rated refund for unused part of contract if cancelled.

So Carchex - any opinions?
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      02-20-2013, 10:16 PM   #16
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Looks like from a quick search they have a lot of issues.
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      02-21-2013, 08:10 AM   #17
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Find out who there Insurance underwriter is....Chubb, Swiss-Re, Allstate...etc. Most states require an A rated carrier. Also you want Exclusionary coverage, not stated coverage it leaves to many parts out. Also, make sure you try to add coverage before factory coverage is up, the terms are much greater and the policies are less expensive 3/75k, 4/75k, 5/100k...etc. Otherwise your looking at 1/12k 2/24k 3/36k for almost 50%more in premium. Remember, most states except Florida and a few others do not have regulated pricing and most dealerships mark-up there warranties 1k, let them make a few bucks and they'll even give 18mos no interest to pay it.

Last edited by Cobra0963; 02-21-2013 at 08:19 AM.
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      02-22-2013, 01:27 PM   #18
Fun w/N54
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I'm just disappointed in BMW plans. If I buy 1 years worth of car insurance and the car gets totaled after 1 month, I get 11/12th of cost refunded.

Anyway the dealer also sells MasterTech Vehicle Protection Program which is covered by American Financial Warranty Corporation. Will read up on their T&Cs.
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      02-22-2013, 03:15 PM   #19
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Guys.....also, a BMW warranty is not backed by BMW! Just like GM, Ford, Honda, Toyota are not they are just manufacturer endorsed. But the underwritter is most likely an A rated carrier and could be the same as Universal, WarrenTech, USWarranty, United Car Care...etc
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