You will probably find that they only cover certain parts of the engine and will only pay for parts that are bust. This means they will probably only pay a proportion of the labour to replace the broken parts and not the whole engine strip down and rebuild. They will probably NOT entertain a performance rebuild as that would simply cost them more money!
I've used a few of these 3rd party warranty companies in the past and the thing to remember is that they are basically just an insurance company, so they will try and wriggle out of having to pay up any which way they can. Make sure you service your car to at least the manufacturers recommended service interval and follow the procedure for lodging a claim TO THE LETTER! Any deviation and they will wriggle out of it - I should know, it happened to me (the bastards)!
Paul (UK)
[This message has been edited by paulroberts (edited March 07, 2000).]