SwedeSpeed - Volvo Performance Forum banner

3rd Party insurance or no?

  • Pay for coverage

    Votes: 0 0.0%
  • "Self insure" and save the money

    Votes: 2 100.0%
1 - 9 of 9 Posts

·
Registered
Joined
·
16 Posts
Discussion Starter · #1 · (Edited)
Hey guys,

The help on this board the last few weeks has been invaluable so thank you so much for that!

Looking to pull the trigger on a 2007 XC90 V8 AWD with 132k miles. I'm going to get it checked by a local mechanic but what are your thoughts on a 3rd party warranty?

I did some research with the top rated providers and it looks like I can get one for $125/mo for 5 years 100k miles coverage for drive train/axles/cooling etc...

From your experience, would this be a decent deal for a car with this many miles or is your hunch that I would be better off to just put some money aside on my own?

Thanks!!!

Nathan

EDIT FOR DETAILS

Pay in full $3,042.00 $0.00 $3,042.00
6 payments $507.00 $507.00 $3,042.00
12 payments $253.50 $253.50 $3,042.00
18 payments $169.00 $169.00 $3,042.00
24 payments $126.75 $126.75 $3,042.00
 

·
Registered
Joined
·
282 Posts
Hey guys,

The help on this board the last few weeks has been invaluable so thank you so much for that!

Looking to pull the trigger on a 2007 XC90 V8 AWD with 132k miles. I'm going to get it checked by a local mechanic but what are your thoughts on a 3rd party warranty?

I did some research with the top rated providers and it looks like I can get one for $125/mo for 5 years 100k miles coverage for drive train/axles/cooling etc...

From your experience, would this be a decent deal for a car with this many miles or is your hunch that I would be better off to just put some money aside on my own?

Thanks!!!

Nathan
I bought a 1 year/20k one for my 2007 3.2 with 122k miles and never ended up using it.

-- DavidV :D
 

·
Registered
Joined
·
662 Posts
$125 for the full 5 years? That comes out to $7500.. That's an awful lot.
 

·
Registered
Joined
·
245 Posts
Today I happened to receive a quote for a Volvo factory warranty while I was at the dealer for a battery. To extend the warranty on my 2007 XC90 3.2 with 69k miles - 36 months was $7k. I could keep this car meticulously maintained over the next 36 months with that kind of cash.
 

·
Registered
Joined
·
836 Posts
We get questions like this all the time on the BMW X5 forum ...

When a car is that old and has that many miles, there is no reason to "insure" it for anything (except for medical and liability of course) ... IMO. And that is exactly how all insurance providers look at it.

All you can get usually with higher mileage cars that are older is MBP, or Mechanical Breakdown Protection. It is truly an insurance product, and not an "extended warranty" product. There is a difference and you ought to be aware of it. The way you are protected is regulated by law by the state you live in. The premiums (and profitability) are established based on how many claims are made ...

A better option would be to self insure: take the money you would've given to the insurance company, put it aside or better, invest it, and draw on it if you need it. In addition, learn how to do simple things yourself, or find a good indy in your area.

All IMO.
 

·
Registered
Joined
·
245 Posts
A better option would be to self insure: take the money you would've given to the insurance company, put it aside or better, invest it, and draw on it if you need it. In addition, learn how to do simple things yourself, or find a good indy in your area.
This.
 

·
Registered
Joined
·
696 Posts
I have spent well over $3k on our 120k mile XC90 V8 since 2013, so on one hand it would seem like the warranty might be worth it. But, on the other hand, it depends what is covered. Major expenses for me were the alternator and A/C compressor, but if yours is a drivetrain warranty maybe those wouldn't be fully covered? Other expensive items have been maintenance related, e.g. tires, brakes, alignment, etc... The only actual engine or drivetrain repairs I've had were the PS front axle (clicking CV joint) and the prop shaft (front u-join toasted). So, in the end I vote for self-insuring.
 

·
Registered
Joined
·
56 Posts
I vote for self-insuring, which is what I do for my cars, but I call it the accrual method of budgeting.

I get paid every two weeks, and set aside $100 from every paycheck and put the money in my savings account.

That's $100 X 26 pay periods = $2,600 / year.

Whenever the car needs maintenance or repairs, the money has been building all year.

Some years the cars just need regular maintenance, and I hardly spend from the accrual.

Some years have fairly costly repairs, and I might overspend the yearly budget.

However, I've been setting aside this amount $2,600/ year for over 10 years now, and it's been a self-sustaining budget.
 
1 - 9 of 9 Posts
Top