Warranty wonders

[Brucelee]

In short, the probability that you will recoup all of your premium in claims is not good.

However, that is not to say you can't.

What we say in the insurance industry is that it is UNLIKELY that you will die before your time, but if you do, you are 100% dead!

You pay your money and take your chances!

[bnorman]

Actually the efficient way to buy insurance is to assume as much of the risk as you can afford and transfer catastrophic losses to the insurance carrier.

I buy $1,000 deductible comprehensive and collission insurance on all four of my cars. That is the highest deductible offered by my company. This saves me over $400 per year in premiums. I save at least one deductible every 30 months. I know that my statistical likelyhood of being involve in a insurable claim is roughly 8 to 10 percent per year (as long as the wife doesn't drive the porsche). So in the long run I am ahead.

The problem with extended warrantees is they usually have a very low deductibles or pay first dollar losses. Thie insurer is going to charge enough to pay those losses and the expenses associated with handling the claims. That is after the have paid 30 to 50% of the premium to the dealer as a sales commission.

Just $ .02 more.

[unklekraker]

I think i'm one of the few consumer who bought extended warranty and use most of what I paid for in less than a year and still got 3 1/2 years left on the contract.

[bnorman]

Adverse selection is another factor that adds to the cost of these policies. People who will need and use them are more likely to buy them.

[leathers]

Have you tried Genuine Warranty, these were recommended to me by Buxton Motorsports. These are the premiums I was quoted buying direct on a 30K mile 2001 Boxster S. 3 years coverage for $1539 with a $200 deductible doesn't appear to be too bad.

[I]Premium Coverage
The ultimate coverage for your automobile - exclusionary coverage means everything is covered unless listed as an exclusion - vehicle must be under 10 years old and have under 120,000 miles. This coverage is the best money can buy and mimics a factory warranty. Customers may choose from a $50, $100, or $200 deductible.

Year/Miles
$50 deduct.
$100 deduct.
$200 deduct.

1yr / 12k
$806
$733
$619

2yr / 24k
$1,388
$1,248
$1,035

3yr / 36k
$2,096
$1,882
$1,539