I hope to lose an all warranties and insurance, but they still have value for me. Pet care is one. Keeps me from having to make a dollar or pet decision. Xcare is another. Yet I am in quake country and don’t carry quake coverage. House did fine with two large quakes so far, and the deductible is nuts. The land alone is worth more than we owe so it is a fair risk.
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Extended Warranty claims
- Thread starter Pianewman
- Start date
Zorak03
Member
I can’t speak about Xcare but I know most third party warranty providers, such as Car Shield, are terrible. My mechanic said he’s never seen a major claim actually get paid. They always have an out. They will claim the issue was because of abuse, a manufacturer defect or normal wear/tear etc and deny the claim.
They will cover a $20k replacement of the HV battery on a 15 year old, 150k+ miles Tesla?
I’m not an expert regarding extended warranty business models. Does the high likelihood of an expensive payout coupled with a relatively low cost warranty eventually result in insolvency?
I understand the bumper to bumper model somewhat better, but only covering battery and drive units that are likely to fail within the warranty period doesn’t make business sense to me. But again, not an expert so maybe it makes perfect sense in some way.
I understand the bumper to bumper model somewhat better, but only covering battery and drive units that are likely to fail within the warranty period doesn’t make business sense to me. But again, not an expert so maybe it makes perfect sense in some way.
It’s always a numbers game as it is essentially insurance. What is the likelihood of the purchaser keeping the vehicle through the complete term? Most will likely flip prior and while the warranty is transferable to a private party, it will not transfer to a dealer on trade in.
I plan to keep mine for a while so it makes sense to me as long as they remain solvent.
I plan to keep mine for a while so it makes sense to me as long as they remain solvent.
Do they list any criteria for when they consider a battery needing replacement? Or any limitations?
If you mean Xcare, they have a sample agreement on their website if you poke around a bit, so you can read it for yourself:
This is the battery and drive unit warranty agreement (the one referenced by @Thump earlier, most likely)
This is their premium extended warranty, which includes the battery and drive unit, and other stuff:
As for the rest of this thread discussion, its headed in the same direction pretty much every single "extended warranty" discussion on car message boards usually end up.
ucmndd
Well-Known Member
The 2016+ batteries appear to be much more robust than 2012-2015 (which is certainly one reason why X-care specifically excludes these older cars from coverage).
The long term plan that Thump just bought appears to be pretty expensive, about $4,000.
X-Care appears to be assuming that less than one in five covered cars will need replacement (and probably that the cost of replacement will continue to decline somewhat as time goes on). I also assume they cover claims with refurbished batteries vs. new so the cost is less than $20k.
Those seem like reasonable assumptions based on what we’ve seen here so far.
I waffled back and forth all week over whether it would be a sound financial decision. Failures do occur and I elected to proceed.
If you never have an issue you will always question the decision but if you have a subsequent battery failure you will be regarded as a visionary genius.
My bigger gripe is my $2400 quote to replace a headlight assembly...
Yes, it seems everything is expensive on these cars. Just think of all the little motors on a Tesla. Everything is controlled by a motor. And, how many cameras? It could get really costly quickly after the basic warranty runs out.
Cameras are fairly cheap, relatively speaking anyway. What "little motors on a Tesla" are you talking about that do not exist on a ICE vehicle of similar price?
Cameras should be cheap (probably aren't), labor is $225 an hour to install cameras. What do ICE vehicles have to do with it? The discussion is about an extended service agreement on a Tesla.
You said "think of all the little motors on a Tesla". Unless you didnt have a car before, those same little motors existed in other cars so dont cause any additional costs that were not present for any other vehicle.
Who said anything about additional costs compared to other vehicles? The discussion is about claims on an extended service contract on a Tesla. I was pointing things out which may impact that decision.
If you want to discuss this question about other vehicles, maybe start another thread in another section.
Thank you for sharing this info! Please let us know if we can answer any further questions.If you mean Xcare, they have a sample agreement on their website if you poke around a bit, so you can read it for yourself:
This is the battery and drive unit warranty agreement (the one referenced by @Thump earlier, most likely)
This is their premium extended warranty, which includes the battery and drive unit, and other stuff:
As for the rest of this thread discussion, its headed in the same direction pretty much every single "extended warranty" discussion on car message boards usually end up.
visit us at www.evwarranty.comHappy New Year!
-Team XCare
My brother sold cars for 20 years before getting moved into the finance office - where they sell the extended warranties. He said experience has taught him that they aren't worth it - that if you put the money in an investment account it will make you money and you probably won't ever touch that dough.
CAVEAT: He almost never worked with EV's.
Common issue: Third party companies exclude a lot of parts - you MUST read what's covered and what's not. Bumper to bumper coverage is VERY expensive. If it's not, be wary.
Another common issue: the company collects a ton of money and files for bankruptcy. You MUST find out if the company you're considering has a real escrow account - not a phony one.
CAVEAT: He almost never worked with EV's.
Common issue: Third party companies exclude a lot of parts - you MUST read what's covered and what's not. Bumper to bumper coverage is VERY expensive. If it's not, be wary.
Another common issue: the company collects a ton of money and files for bankruptcy. You MUST find out if the company you're considering has a real escrow account - not a phony one.
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