I suppose I'm just adding another report on Nationaly Warranty Insurance Co. A lot has already been written on how they suddenly declared bankruptcy and left all the policy holders stranded. To give a little background—I purchased their automobile warranty back in June when I bought my 2000 Daewoo Leganza. The car had only 23,000 miles on it and ran beautifully, but the auto dealership (Courtesy Mitsubishi) convinced me that I should purchase the 5-year warranty for $2,495. I had reservations then as to whether I would ever actually recoup that in the next five years and anyway that cost was put together with my car payments as a whole so that when you add the interest I was paying considerably more. But I signed for it.
I had the car for almost three years when I needed a new fuel pump.in the meantime the car dealership I bought it at had closed leaving many buyers stranded. This was also true with the warranty. I did not even get a notice in the mail that they had declared bankruptcy. When I finally found a garage that fixed Daewoos they told me that I was only covered for the powertrain under the original purchaser's warranty so I might as well get that replaced which I did although there was a maintenance charge.
About a year later I got a letter in the mail from the law firm of Gilardi & Co., LLC. About a class action lawsuit. They are one of the best at class lawsuits, but after signing on I did not hear from for almost a year. Finally I called and they said that the chances for recovering the money were very slim as the company had opened up a bank account in the Grand Cayman Islands where it was out of the reach of U.S. Jurisdiction.
So my warranty would have worked for only two years and I have no way of recouping my money.in conclusion I would say that it is foolish to purchase automobile warranties. They attract all kinds of scam artists like that and in my case even if it was good I would not have recovered even half of what I spent on the warranty. I had one major transmission job for $887.58 in the fifth year and I'm sure I spent more than that just on interest for the warranty. Learn to put money away for a rainy day or put it on the credit card. The payments can't be more than what the warranty payments are and you at least have gotten the work done. This cesspool of scams and corruption at your expense can only be defeated when you walk away.
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