Quote:
Originally Posted by lake x7
Quote from BMW dealer, I assumed it is the factory warranty, but I did not ask.
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Quote:
Originally Posted by lake x7
Quote from BMW dealer, I assumed it is the factory warranty, but I did not ask.
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Typically it's not BMW. It's a third party auto warranty provider that steps in on these contracts after the manufacturer's standard warranty.
BMW is usually required to do the work and then you either get reimbursed or the dealer bills the insurer directly, but I believe it can vary depending on the dealership's insurance relationship. It's not necessarily the same carrier in every region or every dealership (this also leads to wide variations in warranty costs based on region or even dealerships).
In my opinion, (and for the record, I am in the reinsurance business) these contracts tend to be - at best - prepaying expected costs or - at worst - a scam because the insurer has a lot of outs (eg, the insured needs to prove that the required maintenance is adhered to exactly or that anything done to the car was performed by BMW and/or reimbursements can take considerable time). And from someone in the industry, everyone loves this business because there are great margins for insurance carriers.