Purchasing Warranty For 80's Vintage Boat

AustinPaul

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Have a buddy looking at an '88 Sea Ray 340 that is in excellent shape. It passed the survey with just a few typical minor items to be expected on a boat of its age. Those will be addressed prior to him taking possession of the boat.

He asked the marina who is consigning the boat about a warranty. They sent all the boat data to Genuine Warranty Solutions and presented a Genuine Protection Plan (GPP) for three years that comes up to about $3000 or about $1000/yr.

All else being equal- like using mechanic of your choice, low deductible, comprehensive coverage, what do you think? Anyone ever used such a warranty and more importantly, if so, ever had a claim?

I imagine it is virtually identical to vehicle aftermarket warranty coverage, about which I have not always heard the best things.

General thoughts?

Thanks-- Paul
 
General thought:

I have no experience with them, but to me it sounds like "Fool and their money soon to be parted"
 
Here are the details if you are interested or curious:

GPP MARINE COVERAGE DESCRIPTION
Genuine Protection Plan (GPP) Covered Components & Covered Assistance Service
Engine: All internal lubricated parts contained within the block to include pistons, piston rings, pins, connecting rods, rod and main bearings, crankshaft, camshaft and bearings, followers/lifters, push rods, rocker arms, rocker shafts and bushings, rocker arm cover(s), oil pump and pickup, oil pan, engine mounts, flywheel and ring gear, balance shaft(s), valves, valve guides and seats, valve springs and retainers, cylinder heads, cylinder barrels, intake manifolds if damaged by a covered component. Lower Unit: Internally lubricated parts contained within the gear case including forward and reverse gears, pinion gears, clutch dog and dog pin, cam follower, prop shaft, driveshaft, bearing and bearing carriers, gear case if damaged by a covered component. Transmission: Internal lubricated parts contained within the transmission housing. Clutch plates and clutch drums, thrust plates, planetary gears, shift bands, reduction gears and bearings, shafts, bearings, hydraulic pump, hydraulic pistons, valve body, transmission mounts, oil pan. Lubricating System: Complete oil injection system including oil pump, oil injection driveshaft and gear, oil tank reservoir, oil lines, and level sensor. Steering: Control helm assembly, control rack and yoke assembly, power steering pump, power steering cylinder, steering main and intermediate shaft, U-joint, wheel hub mount, steering gate, nozzle or rudder, hydraulic steering head, hydraulic cylinders and flow valves. No coverage for cables or pulleys. Jet Outboard Drive: Internal lubricated parts contained within the pump housing. Driveshaft, shaft bearings, shaft coupler and flex disc, mounts. Jet impellers and liner are not covered.
Pump Drive System: Internal lubricated parts contained within the pump housing. Jet impellers and liner are not covered.
Controls: Shift and throttle control box parts to include: Cams, shafts, pivots, bushings, housing, control arms/levers or knobs, engine mounted shift control cable and throttle control cable. Neutral switch, starter/stop switch (excluding key/lock), horn button.
Power Trim: Trim and/or tilt motor, trim cylinders, cylinder mounts and pivots, trim motor actuator solenoids, control valves, reverse leak valve, trim and/or tilt wiring harnesses, trim and/or tilt master control switches, manual trim cylinder and manual trim cable.
Fuel Delivery: Fuel delivery pump (mechanical/diaphragm), carburetor body, air box (silencer/flame arrestor), and electric choke solenoid.
Electrical: Alternator, starter, starter solenoid, voltage regulator/rectifier, terminal blocks, starter switch, and windshield wiper motor.
Ignition: Power pack/switch box, ignition coil, ignition amplifier/module, ignition trigger and pickup sensor, ignition switch, and rev limiter.
EFI/DFI Engine Management System: Fuel injectors, fuel distribution(s), fuel injection pump, fuel delivery pump, ECU (Electronic Control Unit), throttle position sensor, idle speed control, air flow sensor, detonation sensor, coolant sensor, and ignition pickup sensor.
Seals and Gaskets: Are covered in conjunction with the mechanical failure of covered components.
Towing Assistance: If while in water, towing becomes necessary due to the breakdown of a covered component, we will pay up to $225 for tow.
Hoist/Lift Out Assistance: Should it become necessary to hoist/lift out the covered boat due to the failure of a covered component, charges will be covered up to $200 on boats larger than 26’ in length.
Optional Packages Covered Components
Fisherman Package (F) Covered Components: Battery main switch, battery isolator, battery selector switch, battery box, fuse block, volt meter, battery charger, electric horn. Electric trolling motor and the foot control unit and control switches (applies to one unit only). Power transom/manual transom lift motor, its slides, jack screws, hydraulic cylinder, and control panel. Anchor, its winch and guide (excludes rope, cable or chain). Fish finder, its transducer, speed and temperature sensors. Digital depth finder readout and sensor. Lake water temperature gauge and sensor (hull mounted only). Compass head including digital display. Speedometer head, speed log, and cable.
Luxury Cruiser Package (S) Covered Components: Auxiliary Powerplant/Generator Components: All internal lubricated parts of the powerplant engine, its starter motor and switch, power inverter/converter. Air Conditioning/Heat Exchange System Components: Compressor, evaporator, capacitors, relays, thermostats, fan motors, control panel, expansion valve, temperature control programmer, receiver dryer, and heating element. Fresh Water System Components: Water pump, compressor, fresh water tank, water lines, traps, fittings, faucets. Hot Water System Components: Thermostat, relays, water heater unit. Waste System Components: Shower, toilets, sinks, fixtures and traps, and connections. Appliances: Range/cook top, oven, microwave, refrigerator, icemaker, trash compactor, central vacuum system. 12 Volt/24 Volt/110 Volt Shore Power Components: Battery charger, converter, onboard receptacle, shower power main switch, circuit panel and circuit breakers (shower power cables excluded). Electrical Components: Battery main switch, battery isolator, battery selector switch, remote spotlight, bow, marker and running light assemblies (light bulbs are excluded), control panel and switches. Dual Station/Tower Control Components: Helm control, throttle speed control box, speedometer head, tachometer head, speed log and speed sensor. Gauges: Voltmeter, fuel gauge, trim position gauge, oil pressure gauge, water pressure gauge, engine water temperature gauge and depth gauge. Bilge Components: Pump, manual control panel, bilge blower and sensor (shutter), control switches. Anchor Control System: Winch, electric windless motor, bow pulpit guide and switches.
Supercruiser Fisherman Package (SF) Covered Components: Includes all items from coverage (F) and (S) above.
Navigation Package (N) Covered Components: GPS receiver, GPS processing unit, antenna, video display screens, controls and switches
Non-Covered Components and Non-Covered Failures: Only those items under “Covered Components” are covered. The following reasons of a breakdown are not covered, even for covered components: Incidental or consequential damage or loss caused by a breakdown of covered components including property damage, physical damage, death, personal injury, inconvenience, loss of use or time, loss of profits or wages, travel expenses, commercial loss, punitive or exemplary damage, attorney fees. Repairs covered under the original manufacturer’s warranty, regardless of if it is still in business. Losses covered under a manufacturer’s recall, factory notice or update program, or, if the vessel is covered under another service agreement, guarantee, or policy. Repairs required due to collision, impact, grounding, abuse, neglect, negligence, misuse, modification, alteration, explosion, vandalism, riot, upset, windstorm, environmental damage, debris, bellows and/or sealing boot rupture, animal/insect damage, aquatic growth, seaweed, algae, barnacles or zebra mussels, salt, sand, dirt, flooding, condensation, mold, lightning, hail, theft, fraud, tire, war, acts of God, or, loss that is normally covered by Casualty Insurance. Vessels used in racing, competition, or commercial/business use. Breakdowns resulting from chemicals, smoke, soot, sludge, carbon or “coking”, corrosion, rust, electrolysis freezing, contamination, overheating, or, operation of the vessel without the proper levels of lubrication or fluid type. Failure to perform the manufacturer’s recommended maintenance. Excessive oil consumption, loss of compression and the gradual reduction in covered components due to normal wear and tear. Damage caused by continuing to operate the vessel while components have already failed. Any failure resulting from submersion or ingestion of water entering the engine through the air induction system or exhaust system including the failure of exhaust flapper valves, cracked or corroded manifolds or risers. Loss caused by external water inlets or outlets and internal water passages being restricted or motor/drive mounted too high. Service adjustments and cleaning, reverse polarity, reprogramming, refrigerant, coolant, lubricants, fluids, misc charges, shop supplies, hazardous waste removal charges, belts or hoses. Seals or gaskets due to seepage or overheating. Any claim not authorized in advance by Genuine Warranty Solutions. Removal or replacement of bulkheads, deck, hull, gear equipment, or any material for the necessary access to the vessel/engine. Non-factory installed components and items not originally on the vessel at the time it was sold new.
GWSIGPP03/05/10
 
1) Get a beer - make that two and a sandwich, pickles and chips.
2) Google "genuine warranty solutions".
3) Read.
 
Thanks gents. I will pass along the info. That's consistent with my gut check. And yes, this REALLY IS for a friend! :-)
 
If your friend is buying a 22 year old boat and is concerned about mechanifcal failutes enough to consider buying a $3000 dollar insurance policy, my advice would be that a 22 year old boat isn't for him.
 
I spoke to a fellow in the auto leasing industry a few years back about the aftermarket warranty business. He surmised it like this: they (the insurance underwriter) are betting they will charge you more in premiums than they will pay you back to fix your car. And since they are pretty good at betting they are generally right. The take away for me was that I shouldn’t bet against the pro's.

How I would apply this to a boat warranty would be to add the caveat; if you can't afford to take a hit on repairs that's not under warranty, boating is probably not a good place to be.
 
quote:

Originally posted by vic33004

I spoke to a fellow in the auto leasing industry a few years back about the aftermarket warranty business. He surmised it like this: they (the insurance underwriter) are betting they will charge you more in premiums than they will pay you back to fix your car. And since they are pretty good at betting they are generally right. The take away for me was that I shouldn’t bet against the pro's.

How I would apply this to a boat warranty would be to add the caveat; if you can't afford to take a hit on repairs that's not under warranty, boating is probably not a good place to be.




Agreed.
 
Any aftermarket warrenty is a crap shoot. If you go through the warrenty period without a claim you lost financially but may have at least purchased peace of mind. If you do have a claim, you win both financially and emotionally. Its your money... you make your bet and you roll the dice.

(edit) Oh, yeah, and at the end of the day the house usually wins.
 
Everyone has a friend of a friend of a friend that would have had to pay through the nose for some major repair if it hadn't been for the extended warranty they bought.
That being said, warranties are profit centers for those who offer it. They wouldn't be offered if the warranty company was going to lose money.
 
So you should never buy something on which someone has made a profit?

This deal does sound too good to be true on the face of it.

OT: I used to sell (worked for companies that sold) extended warrantees for years on appliances and electronics, did a couple of big actuarial studies. They made sense to me, even knowing what the overall profit margin was, on anything with lots of moving parts: VCRs when they were $600 on up, washers, etc. The sales guys used to use this line when someone would challenge them on the profits: "You have life insurance?" .. uh yes, "Have you ever died?".
 
Did anybody read what they exclude???
They warranty the stuff that doesent fail and exclude the stuff that does.

quote:

[Failure to perform the manufacturer’s recommended maintenance. Excessive oil consumption, loss of compression and the gradual reduction in covered components due to normal wear and tear. Damage caused by continuing to operate the vessel while components have already failed. Any failure resulting from submersion or ingestion of water entering the engine through the air induction system or exhaust system including the failure of exhaust flapper valves, cracked or corroded manifolds or risers



 
Basically Bruce beat me to it...but I would add water intrusion into the hull.
 
Pretty much exclude al the things that cause marine engines to die.
 
I've had good experience with extended warranties on cars (Recently covered a $2000 turbo repair on a 90K mile car) but that warranty is likely to never pay a calim.
 
Yes, aftermarket warranties are a crapshoot. If the warranty company could not make a profit then they would obviously not be in business.

It is all a matter of the individual looking at the product that he/she wants covered and deciding just what are the odds that a warranty is goof for them and that particular product. Because of todays very expensive major car repairs I toss the dice and decide that I want an extended warranty.

I might also purchase one on a boat if I thought that the odds of having to replace an engine or some other very expensive piece of equipment (or series of smaller equipments) might warrant it. It would also depend upon the reputation of the specific warranty company.

I have one extended warranty that has been a jewel. This is on my Sears gas grill. For $98 every three years Sears keeps this grill in perfect operating condition. This warranty has literally saved my hundreds of dollars. Usually I do not get extended warranties on small items like that.

George
 
quote:

Originally posted by caltexfla

So you should never buy something on which someone has made a profit?






That wasn't my point. Most (not all) people will come out ahead of the game moneywise, not buying extended warranties.

I used to sell some fairly expensive equipment and the company I worked for encouraged the sales people to sell service/warranty packages as they were a big profit center.
I would let my customers know we had these to offer, if they were so inclined to buy, but I never arm twisted anyone because if the shoe were on the other foot, I wouldn't buy the service contract. Looking back, I don't think I ever sold the first one because my customers sensed my lack of enthusiasm.
 
George: There are many reasons to replace a marine engine and most of the common ones are excluded from that warranty.
 
George: There are many reasons to replace a marine engine and most of the common ones are excluded from that warranty.
 
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