Hi guys,

I keep seeing these commercials on TV for extanded car repair insurance from companies like USfidelis, Mogi, etc. What's the story? Why do these companies seem to be popping up now? Are they a good service to have?

I'm driving a 1998 Nissan Maxima, which has been an awesome car, but over the part few years, I've gotten a few high-cost repairs done that these services claim to cover.

Anyone use these insurance services? I'd love to hear people's real-life experience with them. Thanks.

Chris

Run. Run fast and far =).

The owner of US Fidelis is building a house not to far from me. $17 million. He's also under investigation in just about every state in the country for a variety of laws he has allegedly broken as it pertains to his business.

BIG RIP OFFS

http://consumerist.com/5234396...xposed-on-today-show

Good to know. Thanks.

Chris

This month's Car and Driver had a short story on them. Basic conclusion was that the likliehood of ever collecting on a claim is pretty slim.

They are probably all scams just like most "home warranties" are. Avoid.

One thing, If they pay off, the policy may state "like kind and quality" for replacements of components.

So, if you have, for instance a car with 125,000 miles on it and the engine lets go, they will replace it with another 125,000 mile "gem" from a salvage vehicle. Or another possible scenario, a used wheel bearing as replacement for a failed part.

Or, they may refuse to pay your chosen shop for the replacement parts your car needs, and they will acquire and ship their choice, which will be supplied by the cheapest place they can find, not necessarily the best quality.

I've seen this a lot, I've worked in car dealerships for 40 years. Just a FYI.