I am interested in the LWM100N Lifetime maxcare warranty for a 2012 Overland. I am an attorney and usually take the time to read everything I sign (or will sign). Pursuant to the sample service contract available at www.chryslerwarrantys.com
, Some provisions concern me. I understand normal "wear" items such as brake pad, batteries, belts, and bulbs are not covered. That is reasonable. Several issues were listed in the "Not Covered" section that are not so reasonable:
THE PLAN WILL NOT COVER, OR APPLY TO LOSS OR EXPENSE RESULTING FROM:
• Repairs required as a result of other than a manufacturing defect (such as a design defect or normal wear);
• Exterior - tires; body sheet metal; glass; plastic lenses; paint; bright metal; bumpers; side-view mirrors (glass/ housing); wheel covers; steel wheels; aluminum wheels; rusted or frozen rims; door handles; weather strips; rust; water leaks; wind noises; all outer body panels; spoilers; plastic and fiberglass body parts; vinyl tops; convertible top fabric; repairs or damage caused by environmental factors such as acid rain, tree sap, salt or ocean spray;
• Interior - trim; carpet; upholstery; dash pad; door and window handles; knobs; buttons; moldings; arm rests and head liner; cargo cover;
The things that are exclued that bother me most are: normal wear, water leaks, wind noises, trim, door and window handles, knobs; buttons
By far the most concerning part to me is the "Repairs required as a result of other than a manufacturing defect (such as a design defect or normal wear)."
To play the devil's advocate, an alternator is covered as a part of the electrical system. Assume it fails at 120,000 miles. Was it defective or is that normal wear. The same argument can be made for most covered parts i.e. water pump, fuel pump, radiator, transmission, and most other parts.
Does anybody have any experience with older higher mileage vehicles with similar repairs under a similar Chrysler plan? I am very curious to hear from people with actual past experiences using similar Chrysler service plans.
Also, another issue is the following section:
IMPORTANT! The maximum reimbursable amount should a covered component fail will be THE TOTAL COST OF THE REPAIRS, PER VISIT, LESS THE DEDUCTIBLE, OR THE CASH VALUE OF THE VEHICLE WHICHEVER IS LESS!
The cash value of the vehicle will be determined by the average retail value as listed in the current NADA Used Car Pricing Guide. In situations where the repairs costs exceed the cash value of the vehicle, the remainder of the Plan
coverage will be cancelled.
In situations where "the maximum reimbursable amount should a covered component fail will be the CASH VALUE OF THE VEHICLE," are such payments paid to the service contract holder? Although one person here suggested that they buy your car, this provision does not say that. As an example, if your car has depreciated to $3000 and you need a $3500 repair (a major covered repair), are you paid $3000 and you walk away with a disabled car for which numerous diagnostic charges have been incurred?
I am not interested in receiving wild speculative responses as they won't help anybody. But, if you have real experience, it would be very helpful.