Are extended warranties like auto shield worth it

[petestan]

I have a 2007 Chevy Aveo LS with 64,100 miles. I bought it used 4 years ago and only put about 2000 miles/yr on it. Last year I had to have a throttle body put in, this year a new battery and a left front lower ball joint and the surface rear drums and surface front rotors.

I was wondering if I should buy an extended warranty and if they are worth it, like auto shield that I always see advertised?

Would appreciate any feedback.

Thanks

 

[REWahoo]

I was wondering if I should buy an extended warranty and if they are worth it, like auto shield that I always see advertised?

No, and no. You'll be better off by putting aside the money you'd pay for the warranty and use it to pay for any future repairs.

 

[Scrapr]

Local Lore is the 3rd party warranty orgs take your money, but don't pay out. Enough time goes by and they Bk and start a new Warranty company

Save your money for repairs on your cars

 

[aja8888]

Most 3rd party auto repair policies exclude wear items like brakes, batteries, belts, tires, etc.

And you will have to fight them tooth and nail to cover a repair. And, repairs will have a deductible cost.

 

[petestan]

Thanks everyone who replied. I appreciate your feedback and you have made up my mind.

 

[pb4uski]

I'm not even sure if you could buy an extended warranty on an 11 year old car.

 

[Lewis Clark]

It all depends on the total cost of the repairs the car will eventually need.

I had an extended warranty several years ago on a car that paid for itself several times over. There was a zero deductible, and we never had trouble getting the warranty company pay for covered repairs. Not everything will be covered, though, so do your due diligence while doing the research.

I agree with the earlier posted who commented that it might be hard to get an extended warranty on a car that is already 11 years old.

 

[Bamaman]

First, Extended Service Plans (ESP) is not insurance.
I would only purchase ESP from an auto manufacturer who is going to be in business long enough to service the plan. They seem to be more attuned to the customers' needs than outside ESP companies.
There have been many ESP companies come and go, and many have stiffed customers for claims after they go out of business. Only ESP companies that are backed by an insurance company should be used, and they are few and far between.

I do not purchase any ESP on my cars or trucks. I purchase vehicles that are the more durable brands, and they usually are the lowest depreciating vehicles in their class. Right now, I have a new Camry, a Honda Civic, a F250 diesel and a Lexus IS250 that has never seen a shop in 10 years. I do my own maintenance, and brakes is about all I have done to them in recent years.

 

[38Chevy454]

I never buy extended warranty. If there is something bad(faulty part, bad assembly, as examples) it will most always fail in the mfr's warranty period. After that I self-insure and will take the risk. I am also capable of doing most repairs myself on cars or other big items. In the end I am way ahead financially saving the extended warranty payments in my pocket.

 

[CoolRich59]

Like home warranties, they are not worth the paper they are written on.

They are quick to take your money, but will find all kinds of ways to deny claims.

Even when they do grudgingly honor a claim, they will force you to take your car to their "approved" shop run by like-minded crooks using cheap, aftermarket parts which are installed by incompetent "mechanics".

 

[jazz4cash]

No. I don’t think any of those cover batteries or brakes which are wear out items so I don’t think it’s going to do what you want anyway.

 

[Floridatennisplayer]

It would cost more than that car is worth.

 

[CaptTom]

Look at it this way: Would they have offshore call centers robocalling millions of random numbers daily, trying to sell you this crap, if it was of any legitimate benefit to you?

Also, look at it logically. They make a profit. So what you spend is, on average, what people receive in benefits PLUS their profit margin. And that's only assuming you've chosen a legitimate company that actually does pay out.

Maybe one day you'll own a lemon, and get back more than you put in. Just like maybe one day you'll leave Vegas with more than you went with.

But over time, over multiple vehicles (and all the other appliances and products they sell these extended warranties for) you're almost guaranteed to come out ahead if you just keep the vehicles and appliances well maintained and pay out of pocket for those few times your repairs go above the average.

 

[brett]

NO, never.

 

[pb4uski]

....They make a profit. So what you spend is, on average, what people receive in benefits PLUS their profit margin. ...

I had a client that wrote auto extended warranties.... it was very lucrative for them... meaning that very little of what people who bought them paid for coverage was paid out in claims.

 

[Walt34]

No, never. Have a fund for that, pay for maintenance/repairs when needed, and you'll come out ahead.

 

[flintnational]

Per Homer Simpson, "Extended warranty, how can I lose!"

 

[6miths]

Run away! Run away!

 

[CoolRich59]

No, never. Have a fund for that, pay for maintenance/repairs when needed, and you'll come out ahead.

I think is the best way to "warrant" your vehicle.

Set aside a modest amount each month. If you have a required repair, you have the funds on hand. If you don't need it, you still have the money.

 

[GravitySucks]

DD1 sold them for a reputable insurance company. She was told it was one of their highest margin earners. Also, she would never buy one.
BTW,the two makes they would not cover were Daewoo and Lamborghini. Save the warranty money and use it to buy a Honda, Toyota or Kia.

 

[Big_Hitter]

No, and no. You'll be better off by putting aside the money you'd pay for the warranty and use it to pay for any future repairs.

got an extended bumper to bumper 60 month warranty on my 09 forester turbo - cost was about 1500 paid over 2 years

a few months into it the sun roof took a crap, the entire tracking assembly had to be replaced - would have cost me 1700 bucks to get it fixed so the warranty paid for itself

so yes, they can easily be worth it

 

[CaptTom]

You can put one token in a slot machine and win big, too.

But if you take into account all those tokens you put in when you lost, the chances of coming out ahead go WAY down.

Think long term. If you buy every extended warranty, you'll be paying far more than just getting the few things that break, fixed. Otherwise those warranties wouldn't be so profitable for the folks selling them.

 

[Big_Hitter]

got an extended bumper to bumper 60 month warranty on my 09 forester turbo - cost was about 1500 paid over 2 years

a few months into it the sun roof took a crap, the entire tracking assembly had to be replaced - would have cost me 1700 bucks to get it fixed so the warranty paid for itself

so yes, they can easily be worth it

update: radiator took a crap yesterday - it's also covered

found out I needed some suspension work, all covered

still have full coverage till the end of 2021, so far this warranty has paid for itself almost twice

 

[H2ODude]

You can put one token in a slot machine and win big, too.

But if you take into account all those tokens you put in when you lost, the chances of coming out ahead go WAY down.

Think long term. If you buy every extended warranty, you'll be paying far more than just getting the few things that break, fixed. Otherwise those warranties wouldn't be so profitable for the folks selling them.

Yeah, anecdotes do not characterize the whole; however, if a sudden expense would annoy you I can see the point. I'm trying real hard to think of the last time I had any car repairs other than brakes or tire replacements, or similar inexpensive maintenance. Think it was in late eighties on my 84 Mazda RX7; transmission of about $1500. I just hope DW's '15 twin turbo magic shuffling hardtop convertible BMW doesn't rub my nose in this comment! I wince every time I watch the top panels go up or down in their magic dance!

 

[Al in Ohio]

Emphatically no.