MOGI is using a nationwide campaign pitch telling consumers, something to the effect, that if their auto warranty has expired or is about too; they can sign up for Mogi's "after warranty" insurance and have all their repairs paid for - 100% of them. Sounds good doesn't it? Getting your car fixed, especially for a major repair, can be really expensive. So it makes sense that for a little extra each month you can have peace of mind knowing that someone else is going to take care of these expensive repairs at a fraction of the cost to you. Just a small monthly payment. Right?
You go to their website and there you can choose from several different coverage plans. These plans range from just the basics to one that covers just about everything except the windshield wipers and air freshener. Naturally the more you want to have covered, the more the plans cost. But they keep touting that with their program, they pay 100% of the bill. You pay nothing - no deductibles, no co-pays, nothing.
But that's only true if you buy their most expensive plan. Look closely at exactly what they are including at each level of coverage. You'll soon find out that with the smaller/lesser plans, they are very specific as to what they will and won't cover. If you take those lists to any repair shop, you'll find that even though certain parts are covered, you will still have to pay for some of the repair work. This is because the repair shop can't work on the covered part of the list without working on the uncovered parts. So in the end - unless you buy into the biggest coverage plan; you're going to pay. Unfortunately, this is the small lie.
Here's the BIG LIE.
Sure, they'll pay 100% of the repair bill; BUT ONLY UP TO THE CASH VALUE OF YOUR VEHICLE. So... If you blow-up your engine and it costs $3500.00 to repair it, but your vehicle is only worth $500.00; guess what they pay??? That's right — $500.00!!! Not the total $3500.00 you thought they were going to pay as it was presented and sold to you. You get stuck paying the other $3000.00.
My advise is to start putting $100.00 away each mo in a separate account only for vehicle repairs instead of sending it to these guys. That way, three years from now when you blow-up your engine; you'll have the money to get it fixed!
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