FlexCare Money-Back Guarantee

[ADDventure JL]

When I called FlexCare again and asked about prorating the contract, they said they can honor that but not the Money-Back guarantee since the term hasnt expired. They offered about $200 of the $1,000+ I've paid in.

Fishy that their offer changed from $0 to ~$200... I'll be using ChatGPT to argue for me and see how they calculate. I'll update this post if anything changes.

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[mixdup]

Should there be any doubt, I am a firm believer in capitalism. No economic system has created more worth in the history of man. Still more, extended warranty companies make their terms clear: they're not snake oil salesman, and nobody is forced to purchase a policy.

But that doesn't mean that they should get bucketed with all the other law abiding profit seeking goods and services companies out there. A simple example.

I buy Oreo cookies at the supermarket. Nabisco charges me more than it costs for them to make them, but for me, that cost is less than than to try to make them myself, or buy some knockoff brand from a competitor. And that cost is less than the worth of my enjoyment of them, for after all, in a free market economy I wouldn't buy them I didn't think them worth the price I voluntarily paid for them.

Let's contrast that with non-essential insurance. That's the kind of insurance that warranties products etc. and is not to be confused with essential insurance (of which I'm a huge proponent) that prevents catastrophic loss or is required by law like life, medical, disability, and liability policies.

Such non-essential warranty companies (e.g. extended warranty insurers) cost people money. Statistically, if you put the money you were paying in premiums into interest bearing accounts, (just like the insurers do) at the end of the warranty period you would come out ahead over purchasing coverage (i.e. this is self-insuring.)

True: a small minority of extended warranty policy holders need all sorts of expensive and covered repairs, thankful they got that warranty, which saved them money over self-insuring. But they are the vast minority.

Unlike in the Oreo cookie example, the very fact that non-essential insurers make tons of money is statistical proof that self-insuring is a more lucrative option on the whole.

And so why does this anomalous situation arise? People buy these policies to assuage fear, something that makes the best of us behave irrationally. That extended warranty vehicle repair company, that toaster manufacturer, their offers to buy their extended care products aren't some exclusive insiders benefit to purchasers of certain products as a perk of membership like some American Express Black Card, they're ways of them making money at statistical expense to their policy holders.

You're basically saying someone who buys an extended warranty (and let's be clear, these service plans are not warranties. Legally they are insurance plans) is a chump, and I think you're wrong. There's lots of things I'll never buy even if I hit the lottery and end up with a bank account with 9 digits in the balance. Different people value things differently, and it's fine that you have the financial wherewithal to cover any repair, but some don't. Yeah, if you do the pure math and have a perfect situation there are ways to come out ahead

But you're like someone who is planning a cruise and nickle and dimes the drink plan to death to make sure you get more than you paid for out of it. Sometimes just putting money in to eliminate something that can be an annoyance, a worry, or something to have to deal with is worth it

 

[AndySpill]

You're basically saying someone who buys an extended warranty (and let's be clear, these service plans are not warranties. Legally they are insurance plans) is a chump, and I think you're wrong. There's lots of things I'll never buy even if I hit the lottery and end up with a bank account with 9 digits in the balance. Different people value things differently, and it's fine that you have the financial wherewithal to cover any repair, but some don't. Yeah, if you do the pure math and have a perfect situation there are ways to come out ahead

But you're like someone who is planning a cruise and nickle and dimes the drink plan to death to make sure you get more than you paid for out of it. Sometimes just putting money in to eliminate something that can be an annoyance, a worry, or something to have to deal with is worth it

The cruise drink plan is off IMHO. That's to me like someone with an extended warranty bringing the vehicle in for stupid ridiculous stuff so as to get their money's worth out of the warranty, not for repairs. There's no joy in that anymore than consuming so much fluid on a ship that your tied to a bathroom passing water just to get your money's worth, or worse, puking it up if it isn't soda that you consumed too much of.

~~~~~~

I don't think people who buy, as you say, these "insurance plans" that cover repairs are chumps. I do not wish to disparage them. I think they make less than sensible decisions to assuage fear: fear that compromises their decision making.

Here's the funny thing about valuing things differently as you say. That Oreo cookie example: sure, we all have different feelings about that cookie, but what policy X covers for repairs is the same for everyone that signs up for it. What differs is our adversity to risk and our unknown future repair history. And ironically enough the people most concerned with some big repair cost are the ones most likely to get the very policy that statistically ends up costing them more money than if they self insured.

There is a reason why those with the funds self insure when they can. By no means, as you say do you have to have a perfect situation to come out ahead, in fact you have to have a situation that is actually quite common. Most people loose money on these policies. When you consider the upfront commissions on their sale, and the fact that the insurers profit, the math forces you to realize that only a fraction of the money you put in is even being used to pay your and other insured's claims.

True: some people don't have the finances to self insure. A couple of points about that. If they don't, and at least their driving a Wrangler, they've overspent on a vehicle. And for those driving the most budget and reliable vehicle they can afford and buy the insurance as a hedge against insolvency I can see you point but it infuriates me because it contributes to social inequity. The people who can afford to self insure statistically come out better than those who can't and need that very windfall.

TL:DR People value risk (fear of losing money on repairs) differently and hence this insurance. This is true. They buy the insurance to feel more at ease about repair cost when the joke is statistically on them and they're living in a bit of Fool's Paradise. Odds are much better they'd walk away with more money in the pocket after the warranty (at least in this case the warranty that is used, where no money is returned upon completion) self funding repairs.

That's not my opinion, it's statistical fact and way the policy is offered in the first place.

Of course a few policy holders get their money's worth out of such policies. And again, insurance to guard against life's financial insolvencies: I'm a huge proponent.

This is the point where people will profess honestly how much they saved getting the insurance. I'm glad for them. The problem is you won't hear from the myriads who in hindsight didn't get their money's worth.

 

[mixdup]

You are trying to be way smarter than you really are, primary evidence is the length of the diatribes you keep posting about this

Bottom line is, I can easily afford an extended warranty and that will cover any headaches that might arise, and also lets me "overbuy" without actually getting into a financial bind

Peace of mind is worth money to people. Maybe not to you, and maybe you have other ways to get that peace of mind, but they're not stupid or making a dumb mistake. They're making a choice that is right for them, and it may not be right for you

That said there are definitely shady extended warranties and true scams out there, but a Mopar warranty probably doesn't really fall into that category

 

[James Westfall]

I don't think people who buy, as you say, these "insurance plans" that cover repairs are chumps. I do not wish to disparage them. I think they make less than sensible decisions to assuage fear: fear that compromises their decision making.

Seriously man...we get it, you don't like extended warranties. You aren't changing any minds with endless TL;DRs.

 

[ADDventure JL]

Well they simply won't reply via email and the people on the phone won't discuss how they calculate the prorating.

So I'm still holding the same opinion as in my original post... You likely won't get your money back, so don't fall for the "Money-Back Guarantee".

 

[James Westfall]

Well they simply won't reply via email and the people on the phone won't discuss how they calculate the prorating.

So I'm still holding the same opinion as in my original post... You likely won't get your money back, so don't fall for the "Money-Back Guarantee".

Money back is the last thing i'm thinking about....over my last three JLs, i've spent just under $3k on warranties, and saved just over $10k.

 

[DustinD]

Just want to give a warning to anyone buying FlexCare. One of their selling points is the Money-Back Guarantee. They'll tell you can get the full cost of the plan refunded if you don't use it... What they don't tell you is you have to let your plan fully expire for them to honor it.

So be warned you likely won't get that money back. Don't pay cash up front for the whole warranty. Pay monthly. Maybe don't opt for high miles/term durration if you're banking on their money back. Attached page from my service contract, which they send to you after you start service.

This kinda reminds me of the way people talk about casino promos and money-back guarantees in gambling. Like, whether it’s a warranty on a Jeep or a cashback offer in a slot or blackjack game, it always comes down to trust and how easy it is to actually get your money back when things go sideways. I’ve seen similar debates in poker and betting forums where players argue about fairness and transparency. That’s why I usually stick to platforms that feel reliable, and recently I came across https://belgeenligne.casino/casino/king-casino/ which seems to do a solid job balancing fun and legit payouts without all the shady vibes. It’s kinda the same expectation people have here: clear terms, no hidden tricks, and actually honoring what’s promised. Whether it’s cars or roulette, nobody likes feeling played when money’s on the line.

From what I’ve seen (and what’s being said here), the “money-back guarantee” only really applies if you ride the plan all the way to the end and never use it. That’s basically the clean record bonus. Totally different from canceling early. If you cancel early, it’s usually prorated - that part seems pretty standard and even dealers are saying you should get something back

 

[Kerney]

I think the OP might have a different version of Flexcare? I just bought a 8/85 plan from granger last month. Looking at my documents, pages 8-10 very clearly talk about cancelling/transferring it, but I don't see anything about a refund if it's not used at all.

Comparing to life insurance is there a term policy vs a whole life policy they offer?

 

[ADDventure JL]

Posting a final update/rant.

I still haven't seen any money back. I was finally able to cancel my Flexcare account, but that didn't process until Jan and they continued to charge me Oct-Jan. They said "You submitted the cancellation, but didn't request a submit a stop payment request. You needed to call the billing department for that."

Maybe it's just me, but usually a cancellation of service means I no longer want to pay for it...

After months of calling and writing, they agreed to refund me around $500 to include the payments after cancelling. Of course they sent that check to the wrong address. There's an additional 4-week processing window to cut another check. If that check ever shows up, the total prorated "money-back" will be about $160.

This entire process has been infuriating. The only reason I've stayed invested this long is because of the charges after cancelling.

Maybe their repair process is easier, but their Money Back Guarantee is nothing more than a sales gimmick that they don't intend to honor.

 

[azjl#3]

The ability to get a pro-rated refund mid-contract is guaranteed by law. Not sure if the contract is being misread, but it actually doesn't matter, in every state in the country they have to let you cancel and get your money back

This, extended warranty is nothing more than insurance policy, cancel and you get prorated. Never heard of full refund if you never use it. I've always used them and get prorated refund.

 

[Kerney]

Posting a final update/rant.

I still haven't seen any money back. I was finally able to cancel my Flexcare account, but that didn't process until Jan and they continued to charge me Oct-Jan. They said "You submitted the cancellation, but didn't request a submit a stop payment request. You needed to call the billing department for that."

Maybe it's just me, but usually a cancellation of service means I no longer want to pay for it...

After months of calling and writing, they agreed to refund me around $500 to include the payments after cancelling. Of course they sent that check to the wrong address. There's an additional 4-week processing window to cut another check. If that check ever shows up, the total prorated "money-back" will be about $160.

This entire process has been infuriating. The only reason I've stayed invested this long is because of the charges after cancelling.

Maybe their repair process is easier, but their Money Back Guarantee is nothing more than a sales gimmick that they don't intend to honor.

I think we are all a bit confused which I think muddled this thread. It now sounds like you were on a payment plan which implies you have to still be in the warranty period. Half this thread is talking about getting money back 6/7/8 years from purchase after you've never used the warranty at all.

That now appears to not be your issue. You are wanting to cancel your policy while you are still in warranty, stop future payments, and get a prorated refund. This is covered on pages 8-9 of my policy. They do not clearly say how the amount is calculated as it appears to be an equation of time and what claims you've made.

Now as far as the address..... it does say if there is a lein the check goes to the lender not the owner. Did you roll this policy into your wranglers loan or was it separate? If it was in the vehicle loan that muddles this even more. If you financed the vehicle for 5-7 years most of the initial payments go to interest while the leinholder paid for the policy up front. That is why they send the check to them so they can calculate a second prorate. Can you clarify where they mailed the check? They didn't just pick some random address. " I'm in the military and I've moved 3 times" is different than 'they mailed the check to my lender'.

It's a simple problem but multiple layers add confusion.

 

[ADDventure JL]

I think we are all a bit confused which I think muddled this thread. It now sounds like you were on a payment plan which implies you have to still be in the warranty period. Half this thread is talking about getting money back 6/7/8 years from purchase after you've never used the warranty at all.

That now appears to not be your issue. You are wanting to cancel your policy while you are still in warranty, stop future payments, and get a prorated refund. This is covered on pages 8-9 of my policy. They do not clearly say how the amount is calculated as it appears to be an equation of time and what claims you've made.

Now as far as the address..... it does say if there is a lein the check goes to the lender not the owner. Did you roll this policy into your wranglers loan or was it separate? If it was in the vehicle loan that muddles this even more. If you financed the vehicle for 5-7 years most of the initial payments go to interest while the leinholder paid for the policy up front. That is why they send the check to them so they can calculate a second prorate. Can you clarify where they mailed the check? They didn't just pick some random address. " I'm in the military and I've moved 3 times" is different than 'they mailed the check to my lender'.

It's a simple problem but multiple layers add confusion.

I was 1 year in on a 3 year plan. This was coordinated directly with flexcare, not through the dealership. I haven't moved, and address was correct on all docs I received. They typed it in wrong on the check.

They will not show or explain the equation they're using to prorate a refund. It's not clearly stated in the contract either. Because it's not clear, they could give you back whatever they want.

Regardless, 6+ months to process, a required hand-written letter, and numerous calls is just ridiculous.

 

[mixdup]

I was 1 year in on a 3 year plan. This was coordinated directly with flexcare, not through the dealership. I haven't moved, and address was correct on all docs I received. They typed it in wrong on the check.

They will not show or explain the equation they're using to prorate a refund. It's not clearly stated in the contract either. Because it's not clear, they could give you back whatever they want.

Regardless, 6+ months to process, a required hand-written letter, and numerous calls is just ridiculous.

If you go into it expecting it to be a mess, it's going to be a mess. Just read all the documentation clearly, twice if you need to, and follow the steps they lay out. I've refunded a Mopar warranty before and it's not that complicated. I did have to stay on top of it, but it got done without sending in any physical paperwork or letters. You can request either through the dealer you bought it from, or whoever you bought it from if not a dealer, or you can request it directly from Mopar. If you're on a payment plan you have to pay it off first. The refund will come from whoever sold it to you

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