Quote:
Originally Posted by boss2k
So you are saying for 200 bucks the insurance company is providing extended coverage on a BMW that costs around 3-4k in market, how is the Insurance company making money? Even if u don't file a claim they are making 200 bucks for a risk of thousands of dollars if there is a claim? How is that possible?
|
Robby Mack above outlined why it's that cheap..
All cars that have the coverage, the risk pool is spread across everyone, so the cost is subsidize. All I could say it's not a scam but the price the does slightly increase, as the car ages..
Why I love and keep it, even though I still have a factory warranty; they don't sweat the bs the dealers might hesitate to cover because of mods, so it's a back up really.
When Geico first offered it, the coverage was 7 years and Unlimited miles but now they limit it to 7/100k.
*They cover the clutch replacement also, if applicable*
https://www.geico.com/auto-insurance...own-insurance/
https://www.bogleheads.org/forum/viewtopic.php?t=197760
https://www.thetruthaboutinsurance.c...urance-review/
https://www.valuepenguin.com/car-ins...hould-i-get-it