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Originally Posted by seventythree
Actually, you are almost on the money with your assessment. More precisely, the net proceeds after paying commissions and administration expenses would be less than half of that figure. So, for ~$700 on average, to cover claims over a 4 year period, one can safely conclude that the plan in question is not designed to cover much!
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Thx. I'm not familiar with the premium break-down for a typical warranty/insurance company but if we assume (as you say) that $700 would go for commissions, expenses, profit, etc, then the more comprehensive $2500 plan says that the average 4yr repair costs should be around $1800 (2500-700) -- which is in the same ballpark.
These numbers look low but we all may be emotionally biased by reading posts of people who have had problems, and not considering the majority of the ones without problems. If this warranty sticks and if they have done their research, the market (as an aggregator of all data -- good and bad) is saying that projected average repair costs are lower than what most of us expect.
Z.
P.S. Haven't read the fine print but if it covers most porblems, the $2500 4yr warranty still looks like a good deal for Boxsters coming out of factory warranty.
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