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Red Ryder

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No, I'm good.

I have the funds, that's not the real question. It's the accident that bothers me. There is minimal metal and chrome on vehicles today that can be straightened. It's ALL plastics and electronics. When involved in an accident there is typically a lot of damage.

Case in point, we had a Lexus and our grandson was learning to drive. He turned left into the driveway at his house after returning from his final driving lesson. It was a typical 2 lane residential street. He made the turn and instead of hitting the brake he hit the gas. Drove the Lexus into the ass end of a pick-up. No damage to the trucks rear bumper. The insurance company totaled the Lexus. The amount they gave us was peanuts on the dollar to replace the vehicle. So in this case the insurance did me no good as for repairs but they did give is a third of the price of a car. Had there not been any collision insurance, we wouldn't have received a dime. Not really sure what it would take to repair the car if it was even repairable. Without the insurance it would have been a hard pill or should I say bill to swallow.

Not sure if my savings would have covered a repair or paid for a new car. That was why the question. I have the discipline, that was never the question. It's the accident that bothers me. They don't occur on purpose or are they ever planned, thus they are accidents. I pay $41.50 per month for both Comprehensive and Collision w/$1,000 deductible. Had I not had the insurance and socked the $41.50 away, it would take awhile to accumulate enough to replace or repair a totaled vehicle. That is all I'm saying.
Good points, it is risk tolerance and maintaining strict discipline. While I typically maintain comprehensive as it is relativity cheap, and even collision when the vehicle's value constitutes a catastrophic loss, there is a time when it doesn't make sense. As for accidents, knock on wood, but so far, a pristine record for 40 years of driving.
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Rkbrumbelow

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Not sure if my savings would have covered a repair or paid for a new car. That was why the question. I have the discipline, that was never the question. It's the accident that bothers me. They don't occur on purpose or are they ever planned, thus they are accidents. I pay $41.50 per month for both Comprehensive and Collision w/$1,000 deductible. Had I not had the insurance and socked the $41.50 away, it would take awhile to accumulate enough to replace or repair a totaled vehicle. That is all I'm saying.
But it's not the savings for just that vehicle, total up what you would have saved over your lifetime of driving. Also new driver in a Lexus? I learned to drive by age 10, tractor on the farm. When I bought my first truck at age 14, 1977 Chevy Shortbed stepside with an ash bed I made myself, I found the only stump in the north field on day 2, A field I had been plowing for 4 years at that point. Accidents happen, but I never drove a caddy or lincoln continental till after I bought my first '85 Seville diesel (nobody said I had good taste in cars). I drove beaters.

Of course, I was also told when I started asking about my own car "here's $2 for gas, put the lawnmower back with a full tank, and start asking the neighbors if they want their lawns cut." /shrug

I understand why people want insurance, I really do. Dad was a Korean-era Marine DI who went into insurance (re-insurance specifically). I learned early how they work and how they make money, I am simply saying do the same thing, but for yourself.

Your case is different as you are paying for a long period of no or minimal losses, your car got parted out for likely 2-3 times what they gave you, and had another person driving.
 

danielmartinez20

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I wish there was better information about warranties available to help make a decision. The problem with most discussions about extended warranties is that the analysis is based on numbers averaged across many customers, but I only care about the risks that I face individually.

For example, let's say an extended warranty plan costs the dealer $900 and they sell it to me for $1100 (the approximate numbers from my last vehicle). The company sells tons of these and knows that on average each customer will get a payout of $600, so they win, the dealer wins, and the average customer loses. Simple, right? And all true, statistically speaking.

The problem is that I am not the average of thousands of customers. I am one dart thrown at the dartboard. I might be one of the many who need nothing, but I could be one of the unlucky ones who need half the electronics replaced. Hidden in that $600 average payout is that most customers will have $0 in repairs, some will need $500, and some will need $5000. Which one will I be?

This is why we buy health insurance. Every year I lose money on health insurance. Buy I buy it anyway because I know that an emergency could bankrupt my family if I don't have it, and so I buy insurance to turn that risk of a catastrophic cost into a yearly expense.

What I would like to see is an expected distribution of extended warranty payouts. What % will never use it (this you can find from Consumer Reports and others), what % will get $1000 in payout, what % will get $3000 in payout, etc. Because that's why I would consider an extended warranty. If almost all payouts are 0x to 2x the cost of the plan, then saving that money and self insuring is absolutely the right approach. There's not much risk. However, if the distribution is more like 90% get nothing from it but the other 10% have $9000 repairs, then an $1100 warranty might be worth it. Insurance is worthwhile when it trades a manageable fee for the elimination of a low-probability but high-impact risk.

So yeah, I wish there was better data available. What does that distribution look like for other Ford vehicles?
It would be great to have all the information needed to make this kind of decisions, but I doubt manufacturers would release it ( maybe they do and I'm wrong), since it would, in my opinion, play against their own interests as a "reliable" brand. I believe there is an active strategy to keep the customer in the dark about certain information
 

Rkbrumbelow

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It would be great to have all the information needed to make this kind of decisions, but I doubt manufacturers would release it ( maybe they do and I'm wrong), since it would, in my opinion, play against their own interests as a "reliable" brand. I believe there is an active strategy to keep the customer in the dark about certain information
The actual actuarial tables are going to vary from company to company, but every public company is going to file profit and loss statements for shareholders that get close to the level of detail you want. Many times you can find the P&L statements online, otherwise, they are in public records. Call a publicly-traded insurance company and ask for a copy of the shareholder's P&L for the past 3 years. I bet they do not ask you how many shares you hold, just your address and name so they can mail it to you.
 

DavidS

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No, I'm good.

I have the funds, that's not the real question. It's the accident that bothers me. There is minimal metal and chrome on vehicles today that can be straightened. It's ALL plastics and electronics. When involved in an accident there is typically a lot of damage.

Case in point, we had a Lexus and our grandson was learning to drive. He turned left into the driveway at his house after returning from his final driving lesson. It was a typical 2 lane residential street. He made the turn and instead of hitting the brake he hit the gas. Drove the Lexus into the ass end of a pick-up. No damage to the trucks rear bumper. The insurance company totaled the Lexus. The amount they gave us was peanuts on the dollar to replace the vehicle. So in this case the insurance did me no good as for repairs but they did give is a third of the price of a car. Had there not been any collision insurance, we wouldn't have received a dime. Not really sure what it would take to repair the car if it was even repairable. Without the insurance it would have been a hard pill or should I say bill to swallow.

Not sure if my savings would have covered a repair or paid for a new car. That was why the question. I have the discipline, that was never the question. It's the accident that bothers me. They don't occur on purpose or are they ever planned, thus they are accidents. I pay $41.50 per month for both Comprehensive and Collision w/$1,000 deductible. Had I not had the insurance and socked the $41.50 away, it would take awhile to accumulate enough to replace or repair a totaled vehicle. That is all I'm saying.
It's mostly a matter of knowing your own risk tolerance. It makes sense to keep full coverage on a car that's still worth $50,000. It doesn't make sense to keep full coverage on a car that's only worth $2,500. Somewhere in between is your own personal limit. Just keep full coverage until depreciation makes it hit that number, then drop down to liability only.
 

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Darnon

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It doesn't make sense to keep full coverage on a car that's only worth $2,500.
You'd be surprised. Bought a 10 year old Focus for $2500. Hit a deer that messed up the headlight, fender, and door. Luckily had comprehensive with a low deductible and somehow insurance didn't total it over the $2100 estimate. Pocketed most of the damages and fixed it for $200.
 

STARCOMMTREY1

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I went with a dealership that does lifetime warranties on the powertrain....
 

Ringo

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This won’t help anyone with Making a decision re warranty. But I gotta say that since I’ve had very easily over a couple thousand damn calls about car warranty over the past few years I will have to really fight the urge to punch my dealer in the throat if he mentions it more than once!! Just saying!
 

mamboman777

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I've never owned a Ford (or any other American brand) mostly because they've never seemed terribly reliable. But I'm going to purchase a Ford Maverick, because nobody else is making anything similar.

I've never regretted not purchasing an extended warranty or service plan for any Toyota, Honda, or Mitsubishi vehicle that I've owned. Reliable cars just don't seem to need them.

The question is whether other Maverick buyers are going to buy service plans. The closest Ford vehicle is the Escape, which doesn't seem to have proven to be that reliable. I know that it's a gamble, but I'd love to know what other folks are thinking.

Thanks!
Funny you ask... Someone called, just today, about my cars extended warranty...

Seriously, meh. I've had them before and what breaks seems to never be covered. So, I don't get them anymore. 🤷‍♂️
 
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STARCOMMTREY1

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Funny you ask... Someone called, just today, about my cars extended warranty...

Seriously, meh. I've had them before and what breaks seems to never be covered. So, I don't get them anymore. 🤷‍♂️
I got one for my wife's car. They just paid out near 7 grand. The only thing they did not cover was the headlight bulbs.
 

Packer Bill

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For me, extended warranty is a good purchase for some vehicles known to have average or poor reliability. When I bought a Plymouth back in the 1980's, I came out way ahead. Since 1990's, I only have purchase Mazda's and never purchased extended warranties. For the past 30 years, I have paid less than $500 in total repairs. I am now purchasing a Ford and now will consider an extended warranty on the electronics...
 

Big Kahuna

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The Flood Ford ESP website is showing maverick extended warranty pricing now. Premiumcare 8/150K is $3665 with lots of other options available. 6/125K $2020.

Extracare 8/150K is $2635 = $329.38 year if divided by 8
 

lotsapapa

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I’m generally not an extended warranty guy but with this being a brand new unit with a lot of brand new Ford tech I think I will purchase one.
 

Rkbrumbelow

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The Flood Ford ESP website is showing maverick extended warranty pricing now. Premiumcare 8/150K is $3665 with lots of other options available. 6/125K $2020.

Extracare 8/150K is $2635 = $329.38 year if divided by 8
Just never finance a warranty unless it is under the price of inflation. Personally I say take the money and invest it to use for budgeting repairs.
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