Should I buy an extended warranty?

[CPAScott]

Age old question --

 

Just bought a 2005 Outback L.L. Bean with 31,000 miles on it. With only 5,000 miles left on the orignal warranty (29,000 left on the power train portion), I was considering whether to buy an extended warranty.

 

I looked to Warranty Direct after reading they have the best deals.

 

Does anyone have any experience or advice on:

1 - Whether I should or should not buy an extended warranty for this car

2 - Which plan under Warranty Direct is the best option

 

I figure that the risk of warranty repairs on this car is pretty small, so I'm not sure outlaying $1700+ for the plan is worth it. As the warranty on the engine, ABS, and transmission is 60,000 miles I question where the risk is.

 

What do you think?

 

The quotes (all are four years or mileage with a $100 deductible):

 

Majorcare:

60K - $980 (cost 4.08¢ per mile above 36K)

75K - $1,109 (cost 2.84¢ per mile above 36K)

85K - $1,189 (cost 2.43¢ per mile above 36K)

 

SecureCare Plus:

60K - $1.437 (cost 5.99¢ per mile above 36K)

75K - $1,649 (cost 4.23¢ per mile above 36K)

85K - $1,757 (cost 3.59¢ per mile above 36K)

 

PowerWrap:

5 years/60K - $915 (cost 2.69¢ per mile above 36K)

 

Airbag coverage is extra and ranges from $76 - $152 depending on the mileage coverage option chosen.

 

Thoughts appreciated!!

 

 

CPAScott

[porcupine73]

I would not buy the extra warranty. Some people like the peace of mind and if you view it as insurance that you may not need then that's fine.

 

On any such warranty, the details must be checked carefully. Especially things that are not covered. Like let's say your drain plug comes loose, dumps the engine oil, and damages the engine. The warranty might cover the cost of new engine oil, but not the cost of engine repairs.

[jon38iowa]

You will garner here, opinions that raise valid points on both sides of this equation.

My take having done it both ways is: Unless you have teanagers driving this car, I would skip this form of insurance. Instead, I would put the same amount of money and then some into a savings account, for future repairs. It would be unusual for you to have any major problems before 100k, with this model and year. Obviously with good care and maintenance of course.

[mtsmiths]

You will garner here, opinions that raise valid points on both sides of this equation.

My take having done it both ways is: Unless you have teanagers driving this car, I would skip this form of insurance. Instead, I would put the same amount of money and then some into a savings account, for future repairs. It would be unusual for you to have any major problems before 100k, with this model and year. Obviously with good care and maintenance of course.

 

What I told my wife.

 

If you do decide to purchase warranty insurance buy ONLY a Subaru policy. Off-side warranty underwriters are about as reliable as inner-city pawn shops.

[LegAC]

I would only buy a policy from the manufacturer. Other policies are through insurance companies. When have you heard the terms insurance and reliable in the same sentance that wasn't an advertising campaign?

[nipper]

considering the largest repair bill on a suby is the headgasket (assuming the engine or tranny dont go poof, a rare occurance), I would reject the warrenty.

If you were going to pay cash for the warrenty, put the money in the bank and forget about it.

 

nipper

[gbhrps]

Say you buy the extended warranty and two weeks later some moron runs a red light and totals your car. Will the seller of the warranty give you your money back, or let you transfer the warranty to your replacement vehicle? The answer is no .... you are far better off putting the warranty money into a savings account, adding a small amount to it each month, and using the funds for future repairs if needed, or put it towards your next vehicle purchase.