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Extended Warranty paid for itself

  

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Topic starter

Hey Scotty, 

I know you are not a fan of extended warranties but I have to brag about my good fortune with mine. 2012 Chevy Cruze, 1.4 turbo, 105k miles.

Last week my valve cover went bad causing my car to run 35% lean and my AC compressor went out. Took it in, everything was covered and all I paid was my $50 deductible. The bill was $1700. My warranty through Ethos has more than double paid for itself with all the repairs over the past 4 years. It runs out next week and due to the price of used cars, I would be a fool to not renew the warranty. 

Thanks for letting me brag.


3 Answers
6

"Even the blind squirrel gets the nut once in a while."


5

You lucked out. In most cases a car owner will pay more in extended warranty premiums than will ever be paid out in claims. For example, let's say you have $100/month in premiums. (I don't know what "Ethos" charges but have seen others that cost about that much.) That means over a period of 5 years you will have shelled out $6000. Most people will not wind up with $6000 in repairs in that time unless they have a very unreliable vehicle. Most 3rd party warranty companies will also do anything they can to weasel out of paying for repairs.


4

That’s good to hear.  Frankly, if I bought and owned a non-Toyota/Honda vehicle and planned to keep beyond the regular factory warranty, I would probably also get the extended warranty for peace of mind although I would get the OEM extended and avoid 3rd party.  Then again, I would get the right vehicle in the first place so I don’t need an extended warranty.


We were all young and dumb once upon a time


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