Quote Originally Posted by druggr View Post
There are 3 reasons I know of not to use them. First, many shops will not be the one collecting from the aftermarket insurance company. The reason ... if all the "i" and "t's" aren't crossed perfectly the claim will be denied leaving them with no payment. So they'll leave it up to the customer to make those mistakes, that way the shop gets their money for the repair. Basically, you pay and try and collect. Second, they won't pay for "known" problems. For example, a Honda dealer in Florida sold a guy one. 6 months later his transmission failed. He returned to the dealer he bought the Wing and insurance policy from, and was told by the service manager "that of coarse the insurance company is not gonna pay for a known issues." Lastly, the biggest winner in the transaction is the sales person selling it, and the dealer. The commissions are huge .... probably more then 1/2 of what you pay for the policy.
I can agree with this in a different form but it sounds the same. In our company, tire sales, we won't get involved with third party coverage. The customer must pay up front, then make the claim themselves. We've been burned in the past with denials and won't allow it anymore. I say we in the past tense as I'm not employed there anymore.