Did you buy extended warranty?

Lloyd's of London is known for offering insurance on practically anything.

All insurance/warranty policies are mathematically designed to benefit the seller (obviously), thinking otherwise would be like going into a casino and expecting to win more often than you lose (aside from poker, but you might still get stuck by the "rake", inb4 MIT Black Jack crew).

 

quote]these sorts of policies are intended to cover major life events, to prevent catastrophic consequences. If I die, I want to insure my family won't suffer financial hardship. If my home burns to the ground, it's likely I won't have enough in savings to rebuild. If I become seriously ill, I could be bankrupted without health insurance. [/quote]

Yet you buy into those losing propositions though. In the big picture, the insurance companies backing every one of those policies will pay out less than they take in. So how can you objectively state that spending your money in this way is a wise choice?

Maybe you should save up more money to cover those potential expenses. Sure, mortgage companies require enough insurance to cover *their* potential loss... and they make *you* pay for it! How can you objectively state that spending your money in this way is a wise choice?

That is true for many people, but is by no means universally true for all people. Consider yourself fortunate that this is the case for you. Stepping aside from the specific case of a new $40k truck, there are many people striving to make ends meet who buy a vehicle (new or used) that's within their means yet would find an unexpected $5000 repair bill a catastrophic life event.

That's quite obvious, and why I suggest stepping out of your own box and consider other possibilities.

It is very common in the business world to transfer risk to others via insurance. It is also very common to "buy" a predictable cash flow with service and maintenance contracts. Whether it makes sense or not depends on the individual situation. Making universal proclamations as to whether it makes sense for everyone just shows an inability to step outside yourself.

In many situations, an extended warranty is not a wise choice. If one does think it may be worthwhile, it is also often best to wait until the original warranty is nearly over before buying. There can be individual circumstances and situations however where they can make sense, so it is disingenuous to claim otherwise.

A much more productive discussion would result from illustrating that extended / additional warranties are simply insurance policies where the probabilities are in the sellers favor. Haughtily claiming logic trumps emotion does nothing positive in terms of conveying information.

 

The dealship i bought mine from has a limited lifetime warranty so didnt feel the need to buy one . I did get suckrd into a dent windshield new key warranty ..... ALSO ALWAYS ALWAYS BUY THE GAP

 

A lot of auto insurances offer something like GAP, do your research before.

 

Depends on the situation.

Certainly if you can't self-insure for the possible loss of being upside down, do consider buying gap insurance -- but also make sure you've shopped around.

I'd also suggest reconsidering how much you're spending on a vehicle (and how long a loan you're taking) if you're putting yourself so far upside down for so long a time that gap insurance is a must-buy.

 

Ive been bailed out by the GAP a few time so i always recommend buying it ... 300$ to cover 10k sounds like a no brainer to me

 

I believe I covered that scenario in my last sentence.

 

I've offered 2 better choices for those who feel they must insure for the cost of potential car repairs. One, set the money you were going to give to Toyota aside as savings. Two, wait until your original warranty expires before shopping around for a policy, so it has some value to you on day 1.

All the other stuff I've already answered.

 

I did, 8 year warranty seemed worth the little extra.

 

but if its already part of your auto insurance, you just gave away that 300 bucks.

 

I have farmers and i know its not part of their insurance , you have to buy it extra also.... insurance only cover value of truck not what you owe on it

 

not all, mine has a vehicle replacement for the first couple years. I don't remember the exact details.

 

I need your advice soon! Going tomorrow to talk to general manager about canceling my extended warranty with EASY CARE. Slick finance manager did not tell me it was going to cost me $2500 which I financed with the truck and I will have to pay intrest on also talked me into another easy care thing about cosmetic warranty and I'm not sure what that cost. The truck come with a free lifetime drive train warrany but it dont cover much.
It was after hours when signed the papers in about 45 min. So stupid me did not think in the rush.
Should I cancel and get a warranty before the original warranty runs out?
thanks for your help

 

@protaxidermist Yes, cancel them now.

When you near the end of your factory warranty, *if* you think you want an extended warranty you can buy one then. Save up some money in the interim to put towards something if you do buy it, otherwise keep saving and use the funds for maintenance/repairs. (that's what I do, and I keep making my "car payments" to the same account when I've paid off whatever loan I got)

If you *do* go with an extended warranty eventually, I'd stick to Toyota though vs third party.

 

Thanks gpb. I'm in North Carolina so I think I'm in South East Toyota region. Not sure if I can get a warranty directly from Toyota. My plan is the Platinum plan that I have read about on this thread at a later time. Does anybody know the cost of this plan? I have a 2017 TRD SPORT DCSB

 

Yep, some insurers offer vehicle replacement (there is a fee in the policy, not usually a huge one), my insurance covers the market value of the vehicle +20%.

 

@protaxidermist Hmm, I'd have figured a SET dealer would be pushing Fidelity Warranty Services stuff.

I've not done so myself, but my understanding is if you get out of region any Toyota dealer can write a corporate policy on your truck. There are claims that Internet sales were quashed years ago, but even then there was nothing to prevent someone from taking a road trip and/or stopping in at a dealer when travelling on vacation or business and writing the policy.

Recently I saw a couple threads indicating some places are doing remote written policies but don't have links at hand.

 

gpb if its not to much trouble if you find them I sure would appreciate it!

 

Try here: https://www.tacomaworld.com/threads/toyota-platinum-extended-warranty.472961/