Ripped off by indie? So interesting how extended warranty works
09-10-2019 | 12:08 AM
#1
Thread Starter
Senior Member
Joined: Feb 2011
Posts: 350
Likes: 105
From: Palo Alto, CA
2011 GL 350, P1 Package, HID headlamps, Blind spot assist, Parktronic, Wood steering wheel
Ripped off by indie? So interesting how extended warranty works
Today I made my first claim on my assurant / USAA extended warranty for my 2011 GL 350. My drivers side front airbag started to leak.
First the really good. I called my local Indy, who are top rated in my city according to the local newspaper "best of Palo Alto" rankings. They already knew about Arnott struts. I sent them a couple of pictures, they called Assurant, and we were approved for replacement of both struts and bags on both sides within 20 minutes. Awesome I get two new struts with lifetime warranty for zero out of pocket. Could not possibly have been easier. I have never been to this shop before and it’s been 20 years since I have had a non-factory warranty repair on any vehicle - I do my own wrenching for anything not covered by warranty.
The interesting part is what they billed the insurance company for. The struts cost them about $350 each. But they billed insurance $1,600 for two struts - when I asked they said they bill “list” price, and said it’s how they insulate themselves from re-work costs. They also added one hour of labor for inspection and diagnosis - which there was of course none of. I got the sense this is just what the insurance company expects to pay, and it’s still half the cost of the local dealer so everyone is happy. But I would be pissed if it was out of my pocket.
When I pick it up tomorrow, I want to ask them whether if I was paying them out of pocket, they still would try to charge me 100% markup on parts and add in an extra bogus hour of inspection labor... Is this all a normal practice at your indies?
First the really good. I called my local Indy, who are top rated in my city according to the local newspaper "best of Palo Alto" rankings. They already knew about Arnott struts. I sent them a couple of pictures, they called Assurant, and we were approved for replacement of both struts and bags on both sides within 20 minutes. Awesome I get two new struts with lifetime warranty for zero out of pocket. Could not possibly have been easier. I have never been to this shop before and it’s been 20 years since I have had a non-factory warranty repair on any vehicle - I do my own wrenching for anything not covered by warranty.
The interesting part is what they billed the insurance company for. The struts cost them about $350 each. But they billed insurance $1,600 for two struts - when I asked they said they bill “list” price, and said it’s how they insulate themselves from re-work costs. They also added one hour of labor for inspection and diagnosis - which there was of course none of. I got the sense this is just what the insurance company expects to pay, and it’s still half the cost of the local dealer so everyone is happy. But I would be pissed if it was out of my pocket.
When I pick it up tomorrow, I want to ask them whether if I was paying them out of pocket, they still would try to charge me 100% markup on parts and add in an extra bogus hour of inspection labor... Is this all a normal practice at your indies?
Last edited by ddruker; 09-10-2019 at 04:46 PM.
09-10-2019 | 08:22 AM
#2
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Joined: Aug 2003
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From: In my garage
E55, GLS450, GL63, GLE350
I believe you have a deductible on the warranty? If so, let them eat your deductible. Yeah, crappy practice by the indy. Makes getting a warranty much tougher and more expensive next time.
09-10-2019 | 04:30 PM
#5
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Joined: Feb 2011
Posts: 350
Likes: 105
From: Palo Alto, CA
2011 GL 350, P1 Package, HID headlamps, Blind spot assist, Parktronic, Wood steering wheel
Interesting. I will be sure to ask what they would have charged if I was paying out of my own pocket.
Earlier this summer, I had the windscreen replaced on my Porsche, through my normal car insurance. In that case, I saw the guy who replaced it had about a $200 spread on his cost vs. the local cost that I could buy the windshield for, and he billed my insurance company the local price, so he made $200 on the part in addition to his labor charge. So I was thinking maybe this is normal. Sounds like it is not.
Earlier this summer, I had the windscreen replaced on my Porsche, through my normal car insurance. In that case, I saw the guy who replaced it had about a $200 spread on his cost vs. the local cost that I could buy the windshield for, and he billed my insurance company the local price, so he made $200 on the part in addition to his labor charge. So I was thinking maybe this is normal. Sounds like it is not.
Last edited by ddruker; 09-10-2019 at 04:52 PM.
09-10-2019 | 04:43 PM
#6
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Senior Member
Joined: Feb 2011
Posts: 350
Likes: 105
From: Palo Alto, CA
2011 GL 350, P1 Package, HID headlamps, Blind spot assist, Parktronic, Wood steering wheel
This is the first vehicle I've ever purchased an extended warranty for - it's been very unreliable, particularly the diesel motor, and it's hideously expensive to repair here in the bay area. I bought the factory extended warranty first, and then when that ran out I bought the USAA extended extended warranty. Last time I added everything up I was over $30,000 in warranty-covered repairs, starting with the original factory warranty.
The last 18 months have been better in terms of reliability - maybe everything that breaks is now fixed enough times it's going to stabilize. The truck drives great, and works well to tow my airstream.
Last edited by ddruker; 09-10-2019 at 04:50 PM.
09-10-2019 | 07:52 PM
#7
MBWorld Fanatic!
Joined: Aug 2003
Posts: 8,690
Likes: 1,098
From: In my garage
E55, GLS450, GL63, GLE350
Yeah, the diesels will eat your lunch! Fuel savings are quickly consumed by repair bills/maintenance costs. I had the USAA warranty but for some reason I thought their was a deductible - guess not. Anyway, I heard they don't do MB's anymore but I have not checked in a while. If so, it's because of mechanics like your indie.
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09-11-2019 | 07:27 AM
#8
Member
Joined: Apr 2014
Posts: 174
Likes: 45
From: Florida
GL450
Today I made my first claim on my assurant / USAA extended warranty for my 2011 GL 350. My drivers side front airbag started to leak.
First the really good. I called my local Indy, who are top rated in my city according to the local newspaper "best of Palo Alto" rankings. They already knew about Arnott struts. I sent them a couple of pictures, they called Assurant, and we were approved for replacement of both struts and bags on both sides within 20 minutes. Awesome I get two new struts with lifetime warranty for zero out of pocket. Could not possibly have been easier. I have never been to this shop before and it’s been 20 years since I have had a non-factory warranty repair on any vehicle - I do my own wrenching for anything not covered by warranty.
The interesting part is what they billed the insurance company for. The struts cost them about $350 each. But they billed insurance $1,600 for two struts - when I asked they said they bill “list” price, and said it’s how they insulate themselves from re-work costs. They also added one hour of labor for inspection and diagnosis - which there was of course none of. I got the sense this is just what the insurance company expects to pay, and it’s still half the cost of the local dealer so everyone is happy. But I would be pissed if it was out of my pocket.
When I pick it up tomorrow, I want to ask them whether if I was paying them out of pocket, they still would try to charge me 100% markup on parts and add in an extra bogus hour of inspection labor... Is this all a normal practice at your indies?
First the really good. I called my local Indy, who are top rated in my city according to the local newspaper "best of Palo Alto" rankings. They already knew about Arnott struts. I sent them a couple of pictures, they called Assurant, and we were approved for replacement of both struts and bags on both sides within 20 minutes. Awesome I get two new struts with lifetime warranty for zero out of pocket. Could not possibly have been easier. I have never been to this shop before and it’s been 20 years since I have had a non-factory warranty repair on any vehicle - I do my own wrenching for anything not covered by warranty.
The interesting part is what they billed the insurance company for. The struts cost them about $350 each. But they billed insurance $1,600 for two struts - when I asked they said they bill “list” price, and said it’s how they insulate themselves from re-work costs. They also added one hour of labor for inspection and diagnosis - which there was of course none of. I got the sense this is just what the insurance company expects to pay, and it’s still half the cost of the local dealer so everyone is happy. But I would be pissed if it was out of my pocket.
When I pick it up tomorrow, I want to ask them whether if I was paying them out of pocket, they still would try to charge me 100% markup on parts and add in an extra bogus hour of inspection labor... Is this all a normal practice at your indies?
Arnott has a life time warranty, if there is something wrong with the strut they replace it free, you pay only installation. Dealer charge around $1200 (labor plus hardware). If your "top rated indie" is charging $1600 they are just stealing
09-11-2019 | 06:49 PM
#9
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Joined: Nov 2004
Posts: 677
Likes: 26
From: So Cal
07 GL450, 91 NSX, 12 Prius
I just ordered an Arnott strut and it is $540 shipped. If the Indie gets a discount that is their profit margin on parts. So 2 strut installed at $1600 isnt that extremely bad. You have to remember Indie should be able to make profit on parts and labor. I would say $100 to $150 labor to install each strut. so maybe the reasonable bill should be $1400 or so. However you dont need t install strut as a pair. usually the dealer does 1 strut at a time when I had warranty strut replacement.
