[s-cars] Warranty Insurance

[chris chambers]

Aaron,

Any type of insurance is simply a transfer of risk,
the question is what risk are you transfering?

You are trasfering the risk of having a major repair,
correct? Obviously it won't eliminate the repair, only
reduce your out of pocket expense. So then the
question I see it is what would the cost of this
repair be? $1,000 $2,000, $2,500, $5000, more?

For a premium of $2,500 I would expect it to offset a
pretty substantial risk, IE repair cost.  If you pay
$2,500 and have a repair of $3,000 you only "saved"
$500. Based on purely Financial data I would pass on
the warranty. I would pass on the warranty, and stick
the money you would have spent on the warranty in a
dedicated accountt.  If you do have a major repair you
have $2,500 to apply towards the cost of repair,
whether it was during teh next 50,000 miles, or
100,000 miles.

If you goal is to pacify your wife by having her
believe that any needed repairs will be covered under
a warranty, well that is another issue.  Maybe you
could tell her you got the warranty, and then not get
it, thereby giving her peace of mind and saving you
$2,500.... :-)

Chris


--- Aaron Taylor <aaron at sunvalley.net> wrote:
> Hi Audi fans
> In wondering if anybody has experience or
> recommendations regarding
> repair warranty insurance.

SNIP }

> Im contemplating purchasing warranty insurance.  The
> quotes vary quite
> alot but it looks like I can get 3 yrs 50Kmi for
> 2000-2500$.

SNIP
The question is do you guys think +/- 800$/yr for
> major repair coverage

SNIP

> wife stranded 2x and her tolerance for this car is
> rapidly diminishing.
> When the next electrical gremlin shows up it'll be
> adios Audi.  I cant convince her these are issues
> you have to deal with on any car including
> new cars and the S6 is actually better than most.
> Thanks
> Aaron

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