Just wanted to share this quick story of what can go wrong.
Bought a 3 year old car used off ebay. Bought a 6 year 100,000 mile bumper to bumper warranty w/ $0 deductible from Warranty Direct. Paid over $3,000 for it.
After 6 months my cars AWD and rear axle gears needed to be replaced. cost was $1200. Warranty covered it fully and up front. 1 year down the road 2 of my electric windows needed to be replaced. cost $800. This time I had to pay up front to the dealer and they reimbursed me. 1 year down the road My A/C stopped working. Went to the dealer cost was $1600 I again paid up front. This time my extended warranty never sent me a check to reimburse. After repeated calls, I then got the state involved, after 2 months of battles they filed for bankruptcy. I was never reimbursed and the company had no assets to liquidate. Also my policy was not backed up by any kind of bond or insurance from the state so i was out of pocket $1000. It could've been worse at least I got the first 2 repairs paid for.
So while I purchased this warrant though Warranty direct it wasnt their fault, it was just one of the agencies that they used. So when shopping for an extended warranty next time I'd probably buy the warranty through the manufacturer. There is no chance that they could go bankrupt, and also no haggle of paying upfront, and the extended warranty adds about a day onto the servicing of the vehicle as the shop has to wait on the repair until the warranty company pays up and that usually takes a day.
So in the future id either put away $150 per month for future repairs or buy the warranty direct through the manufacturer and avoid all the possible nasties that could happen.
