Quote:
Originally Posted by boss2k
Are u telling me 30 dollars a yr for 7 yrs = 210 bucks will cover all mechanical failures of the car for 3 yrs / 50K miles, thats BS and not possible. Read the fine print.
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In a nut shell yes plus a deductible (250 if I recall). It's actually free money for the gecko. They make you buy it up front as part of a package endorsement (probably added to leases as well that will never see this coverage triggered) on new cars and lock you in for as long as you own it or 7 years whatever comes first. Coverage for most cars would only be triggered in years 5-7 of ownership assuming the standard warrantee is 4 years or so and from 50-100k mikes. The likelihood of a catastrophic engine failure at that point is very, very, small. Additionally the average owner turns over cars less than every 5 years and they have the law of large numbers working for them. Their exposure is maybe 9 months max for their book. The loss ratio on this piece of their business is probably not higher than single digits.