Too many dealers

compared to the cost of the repairs, the home insurance makes a lot more
sense than the extended service. Even an expensive repair after 4 years
(on new cars is not very likely) is probably less expensive than the
service policy, if you have to buy it.

 

When I bought my Avalanche in Sepember last year, they asked if I wanted
"extended coverage."

The price was $1200. At the time, GM was only offereing 3/36000mi
coverage. In other words, I'd be paying $1,200 for two years of coverage.

I declined. Knowing the 5.3L engine and the 4L80/4L60 transmission, I
figured they would not go bad before five years. Any other repair would
not cost anywhere near $1200. (I put 150K miles on my '95 Jimmy with the
4L60 and never had a slip.)

 

The vast majority of the time, the dealer and insurance company make out
on the insurance. Otherwise, they wouldn't be selling it if they didn't
make money.

jeff

 

Insurance is for things that you can't afford to fix yourself. A burnt
down house, for example.

The cost of repairs, IMHO, doesn't qualify for buying insurance. The
odds and costs make auto repairs something that most people should
effectively self-insurance.

Yeah, but they can't very well say that these nearly identical cars have
the insurance and these don't. Those sorts of offers apply to all
qualifying cars.

Jeff

 

They should be illegal!
You are more likely to be hit by the oncoming driver you blind.

 

I remember people said this when they changed from the system where one
headlamp switched off altogether on low beams to leaving both lamps lit
but aimed down. Then again when they changed from separate bulbs mounted
in a reflector to sealed-beam units. And again when they changed to
quartz-halogen lamps. I'm not old enough to remember, but they probably
said the same when vehicle lighting changed from carbide or kerosene to
electric.

Perce

 

This is a different situation.
The white level is too high, blinding many oncoming drivers.

They are unnecessary for our driving conditions, but nice to have at the
gas consuming high speeds on the AB in Germany.

 

I didnt have a choice in it, one way or the other. My responsibility is to
dim my
lights when there is oncoming traffic, and I do my best to be mindful of
this.

 

I've not found it to be a problem, even on a two lane that is my regular
route from work in the dark of winter. Idiots with high beams or poorly
aimed driving lights are a bigger problem.

 

I never complained about others with HID headlights either, Ed. Nor with
DSLs. They just dont bother me like they apparently upset some people

 

have you had to buy a power steering pump or ac compressor lately?
the ac compressor runs about 350 to 500 dollars depending on brand of car
but that extended warranty may cover depending on which one you get. a a/c
compressor is not a engine or trans but makes the service contract worth
the money
spent on it because they also cover r134, seals and reciever-dryer were if
you did not have coverage it would come out of your own pocket.
which makes a a/c repair a major expense nowadays even a power steering pump
is not a cheap fix
and if you drive a chrysler product you will end up needing a compressor and
evap coil just hope it fails before a 100k

 

the mark up on servioce contracts is about 50 % if you sell enough of them in
a 30 day period if not it's less like 35%

 

So that means that if you sell a $900 policy for $1200, you make a fast
$300.

That means, assuming zero overhead and profit for the insurance company,
a loss of $300, on average.

Jeff

 

Insurance is always a loss, unless you need it. Sometimes even then it is a
loss.

Life insurance never helped a single insuree.

 

That's wrong in two counts: With life insurance, you can get an annuity
with it. That's not a good idea. Plus, if death is imminent, the
insurance companies may be willing to provide a payout while one is
still living (at less than what the payout would have been).

However, the insuree is not the person who is insured. Rather, what is
insured the financial well-being of the beneficiary of the insuree. And
that has made a lot of lives easier after the passing of a loved (or
hated one).

Jeff

 

I know all that, but the fact stands, simple life insurance doesnt help the
insured.

 

I agree that those repairs are expensive, but I still - were one of
those problems to occur - would be money ahead without having spent the
money for the extended policy. Average the cost and the risks over
several cars over the years, and you would average out money ahead
without the extended coverage. If not, the companies would not be able
to stay in business.

Bill Putney
(To reply by e-mail, replace the last letter of the alphabet in my
address with the letter 'x')

 

thats the markup the dealer gets from the contract cost to them

 

i picked a repair that i know is a common issue on dc vehicles just like the rack
and pinions failing along with p/s pumps and wheel bearings that have a high
failure rate
the cost of the service contract (not insurance )is justified . also you can count

 

Which is one of the reasons I do my own work whenever possible.

I happen to have a '99 Concorde with a bad evaporator now, and I still
have no regrets not having extended coverage.

Bill Putney
(To reply by e-mail, replace the last letter of the alphabet in my
address with the letter 'x')