Mazda Extended Confidence Plan

[Rarebit]

I suppose a lot of people have already heard this or figured it out, but I think it bears repeating.

There are two classifications of "insurance" - insurance offered to you as a service, and "self-insurance".

I self insure as a general rule unless 1) I think the insurance premiums will be less than the expected cost of repairs, or 2) I can't afford an expensive repair and would rather pay a predictable amount even if it's not certain I'll need it.

Insurance carriers make money on policies, on average. This means that the statistically expected cost of repairs is significantly less than the insurance premiums. Of course, there will always be people who are unlucky to experience an unusual and unusually expensive repair. I've had a few in my time - a Fiat that required a new differential at 12,000 miles; a Mazda RX-4 that needed new engine seals at 48,000 miles, and an Audi that needed a new transmission at 30,000 miles. The first two were covered by warranties, the third wasn't but I got Audi to pay for the parts and ⅓ of the labour by being a polite but insistent pain in the ass.

I've never bought an extended warranty on a vehicle, and won't start now. Of course, YMMV. Every person has his or her own risk tolerance, and some value the peace of mind extended insurance buys. Just remember that this is what you're paying for, and if it's worth it to you, do it. There's no one "best answer" for everyone.

 

[yrwei52]

Hey all, just joined this forum as we are picking up a new cx4 tmro. Was looking for some solid info/advice on a ext. warrenty but seems to be just as many questions and lack of info as anywhere else. Looks like the Mazda EW isnt too hot so what else is out there?

You meant CX-5, right? After reading all the valuable suggestions, if you're still uncomfortable not to have an extended warranty, go get one from the manufacture, i.e. Mazda Extended Confidence Plan. Mazda will back up its products the best. It happened before that a major third party warranty company was simply just out of business which left nothing for those bought the warranty.

 

[cybercruiser]

I considered it, with all this tech, there's a lot to go wrong, but, ended up not going with it. They can't seem to fix my infotainment center under warranty, why would I think they could fix it under an extended warranty?!?!!?!?

 

[inlinev]

My dealership doesn't sell an extended warranty. I was a bit puzzled.

 

[dspin]

Well, if Ford Motor co goes out of business, the whole country is in trouble.

I also feel if I never use an extended warranty I am indeed a winner.

 

[IHeartGroceries]

I suppose a lot of people have already heard this or figured it out, but I think it bears repeating.

There are two classifications of "insurance" - insurance offered to you as a service, and "self-insurance".

I self insure as a general rule unless 1) I think the insurance premiums will be less than the expected cost of repairs, or 2) I can't afford an expensive repair and would rather pay a predictable amount even if it's not certain I'll need it.

Insurance carriers make money on policies, on average. This means that the statistically expected cost of repairs is significantly less than the insurance premiums. Of course, there will always be people who are unlucky to experience an unusual and unusually expensive repair. I've had a few in my time - a Fiat that required a new differential at 12,000 miles; a Mazda RX-4 that needed new engine seals at 48,000 miles, and an Audi that needed a new transmission at 30,000 miles. The first two were covered by warranties, the third wasn't but I got Audi to pay for the parts and ⅓ of the labour by being a polite but insistent pain in the ass.

I've never bought an extended warranty on a vehicle, and won't start now. Of course, YMMV. Every person has his or her own risk tolerance, and some value the peace of mind extended insurance buys. Just remember that this is what you're paying for, and if it's worth it to you, do it. There's no one "best answer" for everyone.

This is the smartest option.

I also suggest performing alot of your own maintenance and repairs, if able.

I've purchased multiple high dollar, third party extended service plans and they have NOT ONCE paid off. In fact, not a single time did I file a repair claim on those policies, which was approved. Total waste. They're a headache and a rip off.

The toughest part will be enduring the condescending finance person's pleadings that a plan is essential now for modern auto ownership. Oh, and to shrug off the life insurance they'll attempt to sell to you as well. "No means no".

I've vowed, at least until physically unable, to "self insure" and to make all of my own repairs.

Also, Mooman's advice makes sense - just nip it in the bud and but reliable autos.

 

[dergibog]

Extended warranties are a gamble. Period. Vegas & insurance companies aren't going anywhere. They both are the odds favorite that you lose.