Many customers buy used BMW automobiles with aftermarket warranties to hedge against repair and maintenance bills. In our experience the quality of aftermarket warranties can vary wildly in respects to what they actually cover and how reasonable they are in what they cover. Some companies are a pleasure to work with and require typical paperwork and diagnostics from our end to approve the work. Other aftermarket insurance companies require a lot of jumping through hoops on our part and even once all the hoops are jumped through it is questionable whether they’ll approve the work.
There are many companies that offer after market warranties at varying price ranges. The best thing we can recommend to a customer who is considering an aftermarket warranty is to read the contract very carefully and make sure you fully understand what you are buying. There are a number of customers who bring us their BMW for service or repair who then have their claim denied by the aftermarket insurance company because the contract’s fine print distinctly excludes the repair required. Other times the insurance company can put us and our customer in a catch 22 dilemma. The insurance company will request pictures of an internal engine component failure, but for us to get them that picture evidence major engine disassembly is required. If we do the work and disassemble the engine to get the pictures to satisfy the insurance company there is still no guarantee the insurance company will approve the claim.
Another thing to consider with an after market warranty company is the process can be lengthy for a warranty claim to be approved or denied. The car is brought to our shop at Bimmer Motors for diagnosis. Then we submit the claim and when the insurance company gets back to us they might send an independent agent to confirm the diagnosis or may require a slew of other things. This can take from a couple of days to a few weeks. During this process you will be without your car while this process takes place.
These are some of the many things to consider when you buy a used BMW and decide to purchase an aftermarket warranty policy. We always recommend that you fully read the policy and make sure that you completely understand what you are buying. You don’t want to be stuck with a policy that will not cover your car for major repairs.