Need Advice With Extended Service Plan

[hogdvr]

As I posted in another thread I have a deal pending on a 2009R1200RT. I have to admit that some of what I have been reading on this and other BMW forums has scared me a bit. The recounting of serious repair costs for systems such as ESA and ABS as well as FD failures is making me rethink my purchase decision.

To mitigate some of my fear I was thinking of the ESP offered by the selling dealer here in Florida. It is through RPMOne/INTERSTATE. It is the "diamond plan". The cost is $745.00 for 3 years unlimited miles. It kicks in when the factory warranty expires. I have tried to read the fine print but frankly it is somewhat confusing. Mainly because I'm not sure how a specific item may or may not be described by BMW as a cause of failure.

Anyway, I would appreciate input from members that have had experience in this area and can comment on whether or not this policy with this company is worthwhile. Cost, reliability, etc. Thanks very much.

[keith1]

I would recommend not parting with your money until the warranty is about to run out and evaluate how your bike is behaving. The great thing about the BMW 3 year warranty is in the 3 years you will usually see what will go wrong with it. My tranny seals leaked on the clutch and I got a new clutch at 20K miles. The bike now has 36K miles. Heck you may want to sell the bike within 3 years and buy something newer. As I said, hang onto your money until you have to part with it. :D

[CDNBKR]

I agree with keith1. Start with the factory plan and see how things go. Also, don't be scared off by what you hear or read. Forums are a great place to vent your problems and ask for help. However, most of the people here have had great experiences with their purchases. Go for it and enjoy!

[peterb]

I am very pleased w/ my purchase of a Pinnacle extended warranty for $1105 that goes from the date the bike was 1st sold to 84mos out - 7yrs! Unlimited mileage. I have already had a full FD replaced as well as a fuel sensor. My personal mechanic as well as a BMW dealer have also been pleased w/ the way they were treated by Pinnacle.

Lovin' my RT [now w/ >50k miles] and real happy w/ the insurance and the way I have been treated. I knew when I bought the bike that it would be a high mileage ride and if you are planning on riding much then go for extended warranty - don't wait until the very last minute. I got mine when the bike was a year old and was pushing 35k.

[Scottly]

As I posted in another thread I have a deal pending on a 2009R1200RT. I have to admit that some of what I have been reading on this and other BMW forums has scared me a bit. The recounting of serious repair costs for systems such as ESA and ABS as well as FD failures is making me rethink my purchase decision.

To mitigate some of my fear I was thinking of the ESP offered by the selling dealer here in Florida. It is through RPMOne/INTERSTATE. It is the "diamond plan". The cost is $745.00 for 3 years unlimited miles. It kicks in when the factory warranty expires. I have tried to read the fine print but frankly it is somewhat confusing. Mainly because I'm not sure how a specific item may or may not be described by BMW as a cause of failure.

Anyway, I would appreciate input from members that have had experience in this area and can comment on whether or not this policy with this company is worthwhile. Cost, reliability, etc. Thanks very much.


Most warranty plans will allow you to purchase the coverage at the same price as new, if you purchase it with at least 6 months factory warranty remaining. This will give you time to think about it. Keep in mind that if you buy it now and cancell later, you'll be charged a cancellation fee and a pro-rata adjustment based on time you had it.
If you'd like, you may email me the terms and conditions and I can review it for you and give you the straight skinny on it.
FYI - those policies are not insurance, but they are covered by an insurance plan. I am a risk analyst for a company that insures most fo them, including many OEM plans. Many of those contracts I have personally been involved with writing the language in them.

[hogdvr]

Most warranty plans will allow you to purchase the coverage at the same price as new, if you purchase it with at least 6 months factory warranty remaining. This will give you time to think about it. Keep in mind that if you buy it now and cancell later, you'll be charged a cancellation fee and a pro-rata adjustment based on time you had it.
If you'd like, you may email me the terms and conditions and I can review it for you and give you the straight skinny on it.
FYI - those policies are not insurance, but they are covered by an insurance plan. I am a risk analyst for a company that insures most fo them, including many OEM plans. Many of those contracts I have personally been involved with writing the language in them.

Thanks very much for the offer. I will be happy to take you up on it. Please PM your email address and I'll get it to you.

[Tracus]

hogdvr,

"I have to admit that some of what I have been reading on this and other BMW forums has scared me a bit. The recounting of serious repair costs for systems such as ESA and ABS as well as FD failures is making me rethink my purchase decision."

A little knowledge can go a long way toward scaring anyone. Let the statistics speak for themselves. What % of BMWs have had the problems you refer to? Now, of all the Beemers out there, that % means how many bikes actually had a problem? So, the rest have had no problems and the owners are out there racking up the miles and picking bugs from their teeth. I am on my second BMW. Had an R11550RS and rode it for 5 years. I had one problem with the headlight/ignition assembly and a leaky fuel connector. I now have an '06 R1200RT and had the FD go out in less than a thousand miles. Both bikes were covered by the BMW warranty and I'm still riding and smiling.

Consider the following: If you're afraid to walk in the woods because you might be bitten by a rattlesnake; realize that you're more likely to be struck by lightning while taking a shower.

Your research into extended warranties is well reasoned and it looks as though you're getting some decent solutions and advice. $745 for 3 more years with unlimited miles is less than $250 a year. If you rode that many days, or more, in a year, it's less than a dollar a day. If their coverage is adequate, you're getting some real peace of mind for a dollar every time you ride the bike. I can't argue with that.

[Scottly]

To mitigate some of my fear I was thinking of the ESP offered by the selling dealer here in Florida. It is through RPMOne/INTERSTATE. It is the "diamond plan". The cost is $745.00 for 3 years unlimited miles. It kicks in when the factory warranty expires. I have tried to read the fine print but frankly it is somewhat confusing. .


I got your email and copies of this plan. In fairness to all, I will not comment on the "value" of this plan. That is something you'll have to decide. I will, however, tell you the in's and out's of the plan or plans and the company offering it. Here goes:

Interstate Dealer Services is a strong company with a good reputation. RPMOne is one of the largest powersports service contract companies in the industry on the east coast. This is important, because you need them around to pay claims.

To the plans you sent me: The "Platinum" plan is a STATED COVERAGE PLAN. This means that ONLY the items listed in the "What's Covered" section are covered under this plan. It is very precise, and covers only a fraction of the components on your bike.

The "Diamond" plan is an EXCLUSIONARY COVERAGE PLAN. This means that it will cover everything on the bike EXCEPT what is listed in the exclusions.
There is supplenmental coverage, which means certain benefits apply if you have the contract during the factory warranty period. Example: the $30 rental, 3 day max benefit applies EVEN IF the repair is covered by the term of the FACTORY warranty and not the extended plan. (Great benefit). Same for the travel expense.

The exclusions are important. I will try to list what may be excluded on the Beemers that may be of major significance.

What Beemer doesn't cover as maintenance items, this plan will also NOT cover.
This plan will not cover shocks. This means that it PROBABLY will not cover the ESA components because the servo motors are part of the shocks. It will probably cover the control module for the ESA.

The radio and speakers are not covered.

Belts, battery, etc., not covered.

If you don't call and get a pre-authorization for repairs, they won't cover the repairs.

They won't cover repairs which exceed the NADA value of the bike, only UP TO that amount. This is an aggregate number.

Clutch and related components....not covered.

Any performance parts that contribute to a failure? That failure will not be covered.

A failure to a covered part caused by a NON-COVERED part is not covered.

You must prove all services have been completed, so keep reciepts.

Here's an important issue: Make sure the declarations page lists the coverage period in one of the following manners: 3+3, which means 3 years factory and 3 years subsequent coverage. OR, 6 years coverage, which means it starts from the first day of the factory warranty for a 6 year time period, meaning you get three years after the factory warranty.

This crap matters, because in a NEW coverage contract, the term listed begins at the in-service date (the date bought new).
A USED contract starts from the day you buy the CONTRACT. So, make sure the term is clearly spelled out on the delcaration page.

Any other Q's, post them and I will try my best to answer them.

[hogdvr]

I got your email and copies of this plan. In fairness to all, I will not comment on the "value" of this plan. That is something you'll have to decide. I will, however, tell you the in's and out's of the plan or plans and the company offering it. Here goes:

Interstate Dealer Services is a strong company with a good reputation. RPMOne is one of the largest powersports service contract companies in the industry on the east coast. This is important, because you need them around to pay claims.

To the plans you sent me: The "Platinum" plan is a STATED COVERAGE PLAN. This means that ONLY the items listed in the "What's Covered" section are covered under this plan. It is very precise, and covers only a fraction of the components on your bike.

The "Diamond" plan is an EXCLUSIONARY COVERAGE PLAN. This means that it will cover everything on the bike EXCEPT what is listed in the exclusions.
There is supplemental coverage, which means certain benefits apply if you have the contract during the factory warranty period. Example: the $30 rental, 3 day max benefit applies EVEN IF the repair is covered by the term of the FACTORY warranty and not the extended plan. (Great benefit). Same for the travel expense.

The exclusions are important. I will try to list what may be excluded on the Beemers that may be of major significance.

What Beemer doesn't cover as maintenance items, this plan will also NOT cover.
This plan will not cover shocks. This means that it PROBABLY will not cover the ESA components because the servo motors are part of the shocks. It will probably cover the control module for the ESA.

The radio and speakers are not covered.

Belts, battery, etc., not covered.

If you don't call and get a pre-authorization for repairs, they won't cover the repairs.

They won't cover repairs which exceed the NADA value of the bike, only UP TO that amount. This is an aggregate number.

Clutch and related components....not covered.

Any performance parts that contribute to a failure? That failure will not be covered.

A failure to a covered part caused by a NON-COVERED part is not covered.

You must prove all services have been completed, so keep receipts.

Here's an important issue: Make sure the declarations page lists the coverage period in one of the following manners: 3+3, which means 3 years factory and 3 years subsequent coverage. OR, 6 years coverage, which means it starts from the first day of the factory warranty for a 6 year time period, meaning you get three years after the factory warranty.

This crap matters, because in a NEW coverage contract, the term listed begins at the in-service date (the date bought new).
A USED contract starts from the day you buy the CONTRACT. So, make sure the term is clearly spelled out on the declaration page.

Any other Q's, post them and I will try my best to answer them.

1. The plan I am looking at is the Diamond Plan.

2. The three most important items of concern for me are: ESA, ABS, and FD.

3. Two of the three are covered. ESA shocks are not.

4. The bike I am looking to buy has ESA so this is important. I spoke with someone from the dealer service department and was told that the shocks will not be covered under this policy because they are considered a "wear" item. So you are correct that a potentially very expensive repair will not be covered. The good news is there are other options available if the shocks fail after the factory warranty expires. Go to standard shocks (Olins) and do without ESA or replace the ESA shocks with aftermarket Works Performance ESA compatible shocks. I can live with either solution.

5. The price I am getting for the three year plan, unlimited miles, and zero deductible is $600.

6. The company writing the plan is sound (per your comment).

Taking all of the above into consideration would lead me to believe that I should accept the plan and go forward.

Anyway you look at it there are some compromises. But, overall I think for the price it will be worth it.

The first part of your comments is something I did not understand and is a benefit I didn't realize I was getting.

The last part of your comments is something I did not know and is very important. I am really glad you pointed that out. It is something I will be looking for in the agreement.

Thank you very much for taking your time and expertise to help. It is much appreciated.

[Scottly]

FWIW, I am not affiliated with RPMOne or IDS. My company does not cover either. My comments are unbiased toward them or anyone else in the industry.

I forgot to mention that.

[james_garner]

Any thoughts about the Western Service Contract Corp? I was sold their "Concept" plan for 60 months, unlimited mileage and no deductible. The 60 months starts day one. I paid $750 for it. Additionally, I paid $370 for their TireSafe Plus plan that covers tires, wheels and towing for 5 years

The contracts are only two weeks old and I can cancel within the first 60 days. It is not a whole lot of money but I want to make sure I did not make a mistake. Any suggestions are appreciated.

[Scottly]

Any thoughts about the Western Service Contract Corp? I was sold their "Concept" plan for 60 months, unlimited mileage and no deductible. The 60 months starts day one. I paid $750 for it. Additionally, I paid $370 for their TireSafe Plus plan that covers tires, wheels and towing for 5 years

The contracts are only two weeks old and I can cancel within the first 60 days. It is not a whole lot of money but I want to make sure I did not make a mistake. Any suggestions are appreciated.

Western is the OTHER big player in the powersports warranty business.

On the tire plan, read the fine print carefully. There are restrictions on the replacement of tires below a certain tread depth that you may find unreasonable. However, should you pop a tire like I just did (that was 500 miles out), that plan will just about pay for itself the first tire that is replaced. I think I paid $160 retail plus mounting for a Michelin Pilot....about $200 at my local indie shop. If you break a wheel (and it does happen), that plan is priceless.

The 60 month plan you bought is, in essense, a 36 month plan. It gives you 36 months of coverage after the expiration of your 36mo factory warranty. So, for about $20 a month, you are covered against many things. Is it worth it? The first time the differential goes bad, it will be....or the crank seal, or tranny seal, or ABS servo, or????

Be sure to check and see if you have an exclusionary plan or stated coverage plan.



He's something to think about: One of the larger companies we isure paid out over $5 million in claims last year. So, to the Consumer Report editors who swear you should'nt buy this coverage, I can only say, you must not have been a part of that $5 million. :-)

[Stixx]

My experience in talking with others is that policies under a grand usually aren't worth much and average is 1200 bucks on R bikes. Those the dealer offer us gives you a bike to ride while it is out of commission too which is nice and covers everything the original warranty covered except paint . Clutch on any BMW is only covered if the seal lets oil get on it which is easily determined once it is taken apart.

So yes, I do plan to pony up the grand at the time my existing warranty is up and I ride about 20K per year so I will get my moneys worth I'm sure. So far I have had no issues with my 08 and it gets ridden hard most of the times. Not abused mind you, but hard.
I have no chicken strips on my tires if that means anything. LOL