Extended Warranty Question

Hello Mr. Reiner, that is a great question that I actually get a lot at the shop. My recommendation is this, for European cars it is usually a good idea as the repair costs can be high. The key here is research, unless you have a certified BMW car the warranty is not a BMW warranty, it is a warranty sold by the dealer but written by a independent company, it works more like an insurance policy.

There are many different companies that provided this service, the dealer will usually sell policies with different companies. Also, there are levels on the contract on what is and is not covered, the price will vary. There usually are deductibles and exclusion that you will have o pay attention to.

A very important thing to know is how the claims are handled, there are 2 ways, it can be done over the phone or the company will send out their own inspector. In the case where they send an inspector out the car will have to be at the shop for 2 to 3 days waiting for the inspector, and he/she will have the final say on whether the repair is covered and there is nothing you or the shop can do about it, it is written in the contract. I find that the companies that handle the claim over the phone tend to be the best.

The main take away is to do a lot of research, there are a lot of BBB complaints and lawsuits with some of these providers. Good luck and thank you for the question.

Gil Neves