Hello All,

I recently posted a query on this column, asking for advice about purchasing a Volvo VIP Extended Warranty versus private Third-Party warranty. In the end I purchased the Volvo VIP Platinum Warranty with coverage of 5 years/60,000 miles from a Volvo dealership. I called 24 Volvo dealerships to get the best price I could. My thought process was, in some states the cost of living was less, and perhaps it would impact the prices quoted. In retrospect it did not. In the end I purchased the Volvo warranty from a dealership in CT, my state of residence. Volvo offers 4 different price points, based upon the deductible you select: $0, $100, $250 and $500. The higher your deductible, the lower your premium, which you pay once, upfront. I choose the $100 deductible, and the total cost including tax was $4,965.84. My Volvo (though I do own two 850 wagons) for which I purchased this warranty is a 2016 XC90 T8 Inscription Hybrid Plug-In. Because it is so full of "gee whiz" technology, I was afraid of owning this car once the factor warranty expired.

In calling around the country, I found some dealers that just read back to me the "Listed Prices" for the various price points based on the deductible. Other dealers openly admitted the "List Price" for Volvo VIP Platinum coverage was unreasonable and were willing to discount the price to make a sale. Some dealers did promote third-party warranties, not associated with Volvo. They were usually cheaper and had broader coverage. Some dealers said they had a very good relationship with these non-Volvo warranties and recommended them over the Volvo branded warranty. I choose to stay with the Volvo branded warranty, even though it was significantly more expensive.

Some lessons. It definitely pays to call around dealerships. Also, if you find a good price, make sure you purchase the Volvo warranty before the start of the new year, or it will cost you more. My concern when I was shopping was I had to purchased the Volvo VIP Platinum Warranty before the factory warranty expired on my XC90, which was 50,000 miles or 2/1/20 (the Inservice date of my Volvo was 2/1/16). I did purchased the warranty before those two deadlines. I called around for price quotes in October and November. I figured, if I purchased the Volvo Warranty after the New Year, I may even get a better deal, because business would be slow in dealerships and they would be inclined want to sell a warranty. What I didn't realize, that as soon as the 1/1/20 arrived the insurance company that underwrites the Volvo Warranty would immediately bump the price of the coverage by a couple of hundred dollars, which is does as a matter of course. I guess the theory being, that based upon a calendar year, my Volvo is officially one year older now and more prone to failure. So when shopping, for a Volvo VIP Extended Warranty, make sure you close the sale before the end of the year in which you are searching.

Anyway, I have the Volvo VIP Platinum Warranty in place, and it has taken some stress out of my life. If I have any problems with this extended warranty which I do not anticipate, I will post them here.

I just want to thank everyone who responded to my earlier inquiry about the Volvo Extended Warranty vs. Private Third-Party Warranties. Your comments and advice were very helpful.

Thanks,

Hugh