Extended Warranty option for 2015 VW Passat Wagon 118TSI

[pelangi]

Thank you. I will get a quote from Leaseworks and warrantyandinsurance.com.au.

Do I expect to pay more because it is now under used car extended warranty or do I expect to have covered less? I read in warrantyandinsurance.com.au that they only pay 100% of the repair on some type of works, not every repair.

And has anyone got experience or heard about RedBook extended warranty? Their underwriter is Virginia Surety

[FarQ]

I sent a web enquiry to warrantyandinsurance.com.au. Got a call back from david at coveru.com.au. Got the following prices for my Passat Alltrack Wolfsburg on the "Eric 5 Star Platinum A Warranty" up to 200k km.

3yr $1665 (3yr VW + 3yr extended warranty, 200k km total limit)
4yr $2165 (3yr VW + 4yr extended warranty, 200k km total limit)
5yr $2395 (3yr VW + 5yr extended warranty, 200k km total limit)

You can get the 5 Star Plan A warranty insurance for any car up to 5yrs old and less than 100k km. The main difference between Eric & Allianz warranty insurance is that Allianz claim limit is market value of car, whilst Eric is purchase price. Allianz is also more expensive (he is going to send me an Allianz quote for comparison). If your car is out of manufacturers warranty, then a waiting period/no claim period will apply.

[pelangi]

I got quotes for Eric from Leaseworks and coveru for similar price:

Leaseworks (Eric Platinum Warranty): 3yr $1,700
Coveru (Eric 5 Star Platinum A): 3yr $1,665

I assume they are the same? I check the PDS, they are similar, but not identical. I am not sure if this is two different products by Eric.

For example on the maximum benefit:

Leaseworks (Eric Platinum Warranty)

The maximum amount payable by Us under this Policy(Maximum Policy Benefit) is limited to the Market Value ofVehicle irrespective of the number of claims.

Coveru (Eric 5 Star Platinum A)

The maximum amount payable by Us under this Policy (MaximumPolicy Benefit) is limited to the Purchase Price of Vehicle irrespectiveof the number of claims.

Also the one offered by Coveru includes Total Loss benefits while the one from Leaseworks doesn't.

[pelangi]

The main difference between Eric & Allianz warranty insurance is that Allianz claim limit is market value of car, whilst Eric is purchase price.

Do you know if the exclusions between Eric and Allianz are similar?

[FarQ]

Do you know if the exclusions between Eric and Allianz are similar?

Allianz:
What is not covered
A. We will not pay any claim arising directly or indirectly out of, or in any way connected with:
1. Any mechanical failure or costs covered by any other warranty, entitlement or recall campaign, including any manufacturer’s vehicle warranty, dealer statutory warranty and/or repairer’s guarantee.
2. Any claim which arises within 30 days of the purchase date of the policy as shown on the policy schedule.
3. Any mechanical failure attributable to failure to follow the vehicle manufacturer’s operating guidelines, including failure to address or complete any published or issued recall or field campaign.
4. Any component which was not made or supplied by the manufacturer of your vehicle.
5. Failure to comply with the “General conditions” of this policy as detailed from page 20 of this policy document.
6. Any mechanical failure attributable to continued operation of the vehicle once a defect or fault has occurred (including activation of any warning system, overheating or loss of fluids).
7. Any liability, consequential loss or damage of any kind arising from a mechanical failure (including but not limited to loss of profits or personal injury).
8. Any loss of or damage to, your vehicle including any form of damage resulting from a collision, impact or any accidental fire or theft.
9. Faulty workmanship, other than for repairs previously authorised by us.
10. Any repairs that have not been performed by an Allianz authorised repairer.
11. Any repairs arising from failure to adhere to the instructions outlined under “Making a claim” on page 25 of this policy document.
12. Any mechanical failure caused by a fault that existed prior to the commencement of cover.
13. Any mechanical failure caused by poor quality or the incorrect grade or type of fuel, lubricant, coolant or other fluids.
14. Any mechanical failure caused by the ingress of any foreign material or the contamination of any fuel, oil, coolant or fluids, unless caused by the failure of a covered component.
15. Any mechanical failure arising from wear and tear and/or the gradual reduction in operating performance of any covered component.
16. Any items that require replacement as a part of normal vehicle maintenance or are known to have a limited service life. These items include (but are not limited to): spark plugs and leads, glow plugs, belts, filters (including particulate filters), hoses, brake and clutch linings, brake pads, disc rotors and/or disc and drum machining, batteries (including electric or hybrid vehicle batteries and power cells) and incandescent globes.
17. Any maintenance, adjustment, upgrade, modification and/or reprogramming required to any covered component.
18. Any claim where the damage to a covered component was caused by a non-covered component.
19. The cleaning of any component, including the removal of any carbon or sludge.
20. Diagnostic costs, unless accepted as part of an authorised claim.

B. This policy will be cancelled and no claims will be accepted where the vehicle:
1. Has been modified from the manufacturer’s original specifications, unless you have first notified Allianz of the modifications and Allianz has agreed, in writing, to extend cover under this policy for the modified vehicle (as detailed under “General conditions – 4. Modifications” on page 22 of this policy document).
2. Is being, or has been, used or tested in preparation for, or participation in, any form of motor sport.
3. Has not been serviced in accordance with the service requirements detailed under “General conditions – 1. Service and maintenance of your vehicle” on page 20 of this policy document.
4. Is being used for hire, driver instruction or conveyance of goods (courier and delivery services use) or passengers, for fare or reward (this includes car rental).
5. Is being used as a police, security, mining or other emergency vehicle.
6. Was not imported into Australia by the vehicle manufacturer or their authorised Australian distributor (grey import).
7. Is being used for a purpose for which it was not designed.
8. Odometer reading cannot be determined as accurate by virtue of it having been inoperative, tampered with or removed from the vehicle.
9. Is un-roadworthy or unregistered.
10. Has had any part of the manufacturer’s vehicle warranty cancelled or voided.
11. Prior to purchase of the warranty, was owned by you and during that time had not been serviced in accordance with the vehicle manufacturer’s requirements and recommendations.
12. Was not eligible for cover in accordance with our underwriting criteria at the time the policy was issued and incorrect details were provided to us, including but not limited to, the vehicle’s age, condition, modifi cations or odometer reading.

General conditions
1. Service and maintenance of your vehicle
For this policy to remain valid, you are required to:
a. properly, regularly and punctually service your vehicle in accordance with the manufacturer’s requirements and recommendations and keep a record of the services undertaken on your vehicle.
b. take reasonable care to maintain and protect your vehicle.
All vehicle servicing should be carried out by the selling dealer or an authorised servicing facility.
Once a service has been completed, you must make sure the authorised servicing facility completes and stamps the “Scheduled maintenance service records” contained in this policy document at the time of the service and you must retain an invoice of servicing showing:
• the name and ABN of the authorised servicing facility that completed the service; and
• the vehicle identifi cation number (VIN); and
• date of service and odometer reading at time of service; and
• a list of the scheduled service items and any other repairs completed; and
• a breakdown of labour and parts costs.
If you do not fully comply with these servicing requirements, we may refuse a claim and this policy may be cancelled.

continued next post...

[FarQ]

Eric:
EXCLUSIONS
The following are not covered:
• Any failure to the extent that is otherwise covered and able to be claimed under a Dealer Warranty or a Manufacturer Warranty applicable to the Vehicle in Australia;
• Any claim attributable to overheating;
• Damage attributable to impact or a road traffic accident;
• Any mechanical failure that can be attributed to the Vehicle being fitted with an LPG unit other than a unit supplied, fitted and endorsed by the Vehicle manufacturer;
• Replacement of or repairs to tyres or wheels (unless covered elsewhere in the Policy), batteries, mechanical adjustments, exhaust system component, replacement or other servicing (including items scheduled as routine servicing by the Manufacturer) which in the judgement of the Manufacturer are made or should be made as maintenance;
• Failure arising from Normal Wear & Tear or the gradual reduction in operating performance of the Vehicle or Covered Component;
• Parts other than those covered by Manufacturer Warranty; including parts subject to recall by the Manufacturer, component parts or design elements which are found to have been an inherent design fault, including parts subject to:
• The Manufacturer’s recalls; or
• Any notice of faults issued by the Manufacturer;
• Parts which have not failed;
• Software upgrades/updates, unless required due to the replacement of a covered component;
• Any loss caused through any modification of any Covered Components or caused by any non-Manufacturer fitted parts;
• Consequential loss or damage of any kind (including but not limited to loss of profits), except unavoidable mechanical damage caused by the failure of a Covered Component. However, if the Vehicle is continued to be operated after the component failure other affected components will not be covered;
• Vehicles that have not been maintained in accordance with the service requirements of this Cover (see section titled ‘Service Requirements’);
• Failure caused by misuse, neglect, abuse or improper servicing or any repairs required as a result of continued operation of the Vehicle once a defect or fault has occurred;
• Any problem caused by the failure to maintain proper levels of fluids, fuels, lubricants or coolants or contamination of fluids;
• Any problem caused by the use of incorrect types and grades of fuel, oil or lubricants or any contaminated fuel, oil or lubricants;
• Any claims where We have not been contacted prior to the commencement of repair or repairs, or where We have not issued an authorisation number;
• Any tapings, threads, fixings and/or fastening devices or repairs as a result of these components not being fitted correctly;
• The costs incurred in improving or reconditioning the Vehicle or parts to a condition superior to that at the time of purchase;
• Damage to the Vehicle caused by corrosion, rust, fire, illegal use (including damage as a result of the theft of the vehicle), malicious damage, impact, accident, earthquake, Flood or other occurrence of nature, riot or civil commotion, war, terrorism, invasion, strikes or resulting from nuclear fission, fusion or radioactivity;
• Diagnostic, dismantling costs and costs to reassemble the Vehicle following such diagnosis or dismantling (if applicable), including where such costs are required to ascertain whether a failure is a covered failure under the Policy, unless accepted as part of an authorised claim; or
• Paintwork, panel and bodywork and all related Vehicle components (including but not limited to) lamps and lamp units, weather-strips and seals, components made of glass, and/or any exterior trim or decorative components.

Please note: The gradual reduction in operating performance of a component may result in a component becoming noisy and as such, does not necessarily constitute a sudden and unforeseen failure.

The Policy will cease and No Cover is provided under the Policy for any Vehicle which:
• Is being or has been used;
• in competitions, rallies, racing, pace making, reliability trials, speed or hill climbing,
• for carrying and/or towing loads above the gross combination weight of the trailer and your Vehicle, as specified by the Manufacturer,
• for car rental,
• for carrying passengers for hire or reward,
• for delivery or courier use,
• as a Police or emergency Vehicle,
• for driver instruction or tuition for reward, or
• in connection with mining and or excavation activities,
• Is unroadworthy or unregistered;
• Is being used outside of Australia; or
• Has an odometer reading that cannot be accurately determined.

This Policy does not cover non-financial loss or consequential financial loss.
Consequential financial loss is indirect loss which accompanies insured loss including but not limited to legal costs or investigation costs. Non-financial loss is loss, including but not limited to distress, inconvenience, pain and suffering and/or damage to reputation.

In relation to the Policy Exclusions, You should also read the next section, titled ‘Service Requirements’ carefully.

SERVICE REQUIREMENTS
It is a condition of Cover that Your Vehicle is maintained in a roadworthy, mechanically sound condition and serviced regularly in accordance with the Manufacturer’s recommendations. It is Your responsibility to ensure that servicing is completed in accordance with Manufacturer’s recommendations. If You are unsure of these, please contact the Manufacturer to ascertain the recommended servicing schedule for Your Vehicle.

An Authorised Dealer must carry out any service or repairs and the Service Records must be completed and stamped each time the Vehicle is serviced. Any defect or fault or any parts identified as needing repair or replacement or which are identified as a potential problem, including those identified while the Vehicle is still covered by Dealer Warranty or Manufacturer Warranty, must be immediately rectified. Upon becoming aware of the development of any mechanical problem, You or any other person driving the Vehicle must take all necessary steps to minimise any damage that might arise.
It is Your responsibility to keep proof of servicing. Before a claim will be authorised, You must provide the Service Records

The guy at coveru said allianz only do 2yr extended warranty (up to an extra 100000km) for $2850. Guess i'm going to go with the Eric 5yr extended warranty for less monies.

[FarQ]

Oh and also got prices on Rim & Tyre insurance (3years):

Eric Standard Cover ($350 per tyre, Maximum 2 tyres per year, 1 Rim Claim per year up to $1000, Unlimited puncture repairs) $348
Eric Prestige Cover ($800 per tyre, Maximum 2 tyres per year, 1 Rim claim per year up to $1500, Unlimited puncture repairs) $593

I'm gonna pass on the above and just get the Eric 5yr extended warranty.

[The_Hawk]

I still feel a little burned by the extended warranty I got through my lease company, they specifically exclude trim pieces from coverage presumably because they aren't essentially to the operation of the vehicle... except in my case when the door puller mechanism on the multivan failed and the fix what to replace the entire door trim (since it was a molded plastic piece on the back which had given up). Short version, extended warranty refused to replace the "trim" regardless of the fact that it sort of impacted my ability to open the drivers door.

On the upside VW Australia came to the party and provided a good will claim that covered the cost of the parts and the dealer covered the labour (one of the benefits of having the Multivan serviced by the local dealer and building a relationship and history). I know there are plenty of other things that the warranty would/could have been good for, but in my case (and most people I would suggest) the extended warranty was never actually used.