I work in this field (lawyer for dealers and manufacturers). Non-mfg backed aftermarket warranties are a nightmare. For friends I've had to help over this three times. The warranty people simply make crap up.

Examples:
1. Top end went on a V-8 Ford SUV with 80k on it. All oil changes as specified with proof. 100k after market warranty. Warranty co. says "Read the warranty. We only cover defects. If you got over 50k on the vehicle, your problem is normal wear and tear and the repair is maintenance. We're not paying."

2. After market full mechanical warranty (******* warranty said "mechanical" not "drive trian" or "power train."). Starter went on a Dodge pick-up at 60k w/70k after-market warranty. Warranty had a list of "examples" of covered parts. E.g., water pump, oil pump, etc. Starter not mentioned. Alternator expressly excluded. Warranty co. said the starter was not covered because it was not mentioned.

3. 100k full powertrain warranty on Vette. Catastrophic engine failure (appeared a piston disintegrated) at 55k. Warranty co. said not covered because we don't cover misuse, and the engine cannot fail like that w/o misuse and also said that they don't write Corvettes (although their agent did and the make and vin were clearly disclosed on app for a year and a half before failure).

Results:
1 and 2: Had to threaten litigation by an attorney with threat of attorney's fees under a certain law here in Nevada. Customer had gotten nowhere. Only on lawyer's threat were the items covered.

3. Had to actually bring suit. $12,500 repair covered and warranty co. paid an additional $8k in attorney's fees on a settlement once their lawyer explained the facts of life to them.

I'm sure that 90% of these go away without the warranty co. paying anything because the consumer gives up. With three such incidents among people I know, this is like shaking a haystack and having a thousand needles fall at your feet. From what I've seen, an after market extended warranty only buys the right to argue that something should be paid, and does not buy peace of mind or coverage.

 

I work in this field (lawyer for dealers and manufacturers). Non-mfg backed aftermarket warranties are a nightmare. For friends I've had to help
over this three times. The warranty people simply make crap up.
Examples:
1. Top end went on a V-8 Ford SUV with 80k on it. All oil changes as specified with proof. 100k after market warranty. Warranty co. says "Read
the warranty. We only cover defects. If you got over 50k on the vehicle, your problem is normal wear and tear and the repair is maintenance.
We're not paying."
2. After market full mechanical warranty (******* warranty said "mechanical" not "drive trian" or "power train."). Starter went on a Dodge pick-up
at 60k w/70k after-market warranty. Warranty had a list of "examples" of covered parts. E.g., water pump, oil pump, etc. Starter not mentioned.
Alternator expressly excluded. Warranty co. said the starter was not covered because it was not mentioned.
3. 100k full powertrain warranty on Vette. Catastrophic engine failure (appeared a piston disintegrated) at 55k. Warranty co. said not covered
because we don't cover misuse, and the engine cannot fail like that w/o misuse and also said that they don't write Corvettes (although their agent
did and the make and vin were clearly disclosed on app for a year and a half before failure).
Results:
1 and 2: Had to threaten litigation by an attorney with threat of attorney's fees under a certain law here in Nevada. Customer had gotten nowhere.
Only on lawyer's threat were the items covered.
3. Had to actually bring suit. $12,500 repair covered and warranty co. paid an additional $8k in attorney's fees on a settlement once their lawyer
explained the facts of life to them.
I'm sure that 90% of these go away without the warranty co. paying anything because the consumer gives up. With three such incidents among
people I know, this is like shaking a haystack and having a thousand needles fall at your feet. From what I've seen, an after market extended
warranty only buys the right to argue that something should be paid, and does not buy peace of mind or coverage.