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Originally Posted by bmussatti
Glad it worked out for you, Chris. It was also worked out great for Warranty Direct!
For example, there are over 13,800 members on this Forum. What if they purchased an "engine warranty" from Brucelee for $1,000. And just 1/4 of us signed up for the policy.
In the years I have been a member, I can only remember a handful of expired engines. I can't even think of 10. But let's just exaggerate the number to 100.
Here are the potential financials:
3,450 "policy holders" (13,800 x 0.25)
$1,000 policy premiums
$3,450,000
-$1,500,000 for failed engine claims
-$50,000 (my business plan fee!  )
$1,900,000 potential profit.
Now imagine the profit if more members agreed to the policy and we did not exaggerate the number of failures. |
Yeah, but a blown engine isn't all they pay for. I've had my warranty with them a fairly short time, but already have had a window regulator and leaky cam plugs and cover, which Warranty Direct covered and saved me $500. RMS failures happen all the time and if you have Tip like me, it's $1500. I'm pretty sure by the time my extended warranty runs out, I'll likely break even or better. More than that, I have the peace of mind to drive it hard and not worry.
This car ain't no Toyota. Out of warranty, it can bite you.