DCU Mechanical Breakdown Insurance

[aman31]

Have anyone purchased this? Is it worth the monthly price? We just financed thru DCU and declined it, but it seems to be available as an add-on. We purchased a 2010 GMC Truck and already found two issues with the truck so I am reconsidering buying the insurance or any extended warranty thru the dealer.

Thanks.

[Anonymous]

I believe its offer through Route66 and I've heard great things about it. Assuming your vehicle is off warranty I'd say consider it. Especially if repairs in your vehicle tend to be on the high side. The reviews I've checked out are from luxury car owners so ymmv

[6speed8]

As a former service manager and service advisor, I've dealt with many extended warranty / "breakdown coverage" type policies. Things to find out BEFORE you sign:

- When does coverage begin ? Some have a waiting period like 30/60/90 days after purchase before they cover any repaurs.

- What is covered. Many don't cover wiring. Many don't cover certain electronics like anything SRS (Supplemental Restraint Systems) such as air bags, seat belt pre-tensioners, control modules,etc .I advised an Audi A8 owner to bring me the policy he was looking at BEFORE he signed. He didn't. After spending $3000ish for a warranty, his SRS light came on. It needed a new Air Bag Control Module. Around $2900 installed. They did not cover any SRS related components.

- How do they pay ? Do they direct-pay the repair shop or do you have to pay up front and submit for reimbursement?

- WHAT do they pay ? Some have caps on labor rates. EXAMPLE: The repair shop has a labor rate of $125 per hour but the warranty only covers up to $90 per hour. SO not only will you be responsible for your deductible,if the shop doesn't accept reduced labor rates from these companies, you may be responsible for the $35 per hour difference.

- WHAT do they base their labor times on ? EXAMPLE: You take your GMC truck to a GMC dealer. They base their labor times on "GMC Book Time" or the factory labor times. These companies may use MOTOR or MITCHELL manuals which are generally LESS than factory times. So if the dealer says a repair is 3.5 hours, but the warranty company uses MOTOR and it says 2.0 hours, AGAIN the shop may tell you that you're responsible for the difference.

- Do they supply used parts for "higher mileage vehicles" ? I've seen some where the vehicle needed a transmission part replaced. Because the vehicle had 90,000+ miles, their policy was to send a used part and pay for labor only. If the client opted for us to install a new part, their coverage was only equivalent to what the used part and labor - at their labor rates - SEE BELOW.

I will not post names but one of the absolute worst I ever dealt with, did NOT cover:

- Diagnostic time

- ANY fluids or filters associated with a repair.

- Supply used parts. To continue the example from the above paragraph.

1997 Mercedes C280 with 97,000 miles. Trans not shifting properly. Needed a new Conductor Plate (Valve Body to us old timers lol). Diagnosis/parts/labor - which included fluid, filter, and pan gasket, was approximately $1200.Our labor rate was $125 per hour. Well "Joe's Warranty" did not cover diagnostic time, fluids/filters/ seals associated with a repair, wanted to send us a USED conductor plate and max'd at $80 per hour and only wanted to pay 1.3 hours of our 3.5 hour estimate. I explained all this to the customer. Bottom line was if they opted for us to replace the conductor plate with a new one, "Joe's Warranty" was only going to pay around $250 of that $1200 repair and the owner was responsible for the rest.

Do your homework on ANY type of extended coverage.