Automotive

Getting out of warranty addon on new car

  • Last Updated:
  • Jul 2nd, 2013 1:49 pm
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Deal Guru
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Oct 5, 2008
11807 posts
5334 upvotes
Toronto
Discount wrote:
Jun 28th, 2013 11:21 pm
So worth it to keep it ?
Its your decision. Its insurance like anything else

You may never use it...then its a waste.....if you use it once...you break even.

Your choice.

I had it on my last Mazda and never used it for 5 years.

I don't have it on my current car that rolls on 20's as it wasn't offered.
Deal Expert
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Jul 30, 2007
25081 posts
9975 upvotes
Toronto
Honda.ca website says the HFP comes with 19" PSS. and the car has LED headlights as well. That's a first !!

btw, you got yourself a really stylish hot ride. Saw a few on the street already. Looks very sporty and aggressive.

B0000rt wrote:
Jun 28th, 2013 11:07 pm
Damn the HFP kit comes with Michelin PSSs?
Deal Expert
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Jan 7, 2007
20338 posts
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Poormond Hill
19" wheels on an Accord? Ain't that overkill?
A life spent making mistakes is not only more memorable, but more useful than a life spent doing nothing.
[OP]
Penalty Box
Aug 21, 2008
546 posts
45 upvotes
Ottawa
Any more opinions? Im still 50 50 on if I should keep the tire warranty. Most importantly I can still legally opt out of that correct?
Sr. Member
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Jul 16, 2008
897 posts
245 upvotes
For how the little the cost is (especially in regards to the total purchase price), I would keep it.
Deal Fanatic
Oct 7, 2010
8685 posts
1043 upvotes
I say keep it OP. Since your tires are expensive + rims expensive.
Banned
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Nov 10, 2012
777 posts
81 upvotes
Hamilton
Jeez nice car! Wouldn't mind to upgrade! Lol

I would keep the protection - Just in case. Hell, scratch the rims for fun now that you have it LOL

Or let your careless friend drive it and park it next to a curb too close.
Temp. Banned
Jun 18, 2008
5095 posts
4597 upvotes
Montreal
Keep it bro....$350 is peanuts relative to the overall cost.
Deal Expert
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Feb 9, 2003
17890 posts
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Langley
A dealer will never sell any warranty or insurance that he doesnt make money on. So its NEVER worth it to get a silly policy like this one.

You may come out ahead on this policy, but most likely you will not. Even if you do come out ahead this time, you wont likely come out ahead over your lifetime.

Really, its no different than a slot machine.

Insurance is for things that would be financially devistating to replace. Warranties are an incentive for a manufacturer to make a quality product. Everything else is a profit center for a seller at the expense of the buyer.
Deal Fanatic
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Oct 25, 2003
9127 posts
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sandikosh wrote:
Jun 29th, 2013 9:12 am
19" wheels on an Accord? Ain't that overkill?
You realize the accord coupe v6 is a 5 second car these days?
it's me ramin.
Deal Expert
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Jul 30, 2007
25081 posts
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Toronto
The HFP limited edition has only 220 copies in Canada (for MY2013). That's pretty exclusive.
Deal Fanatic
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Jan 6, 2011
5550 posts
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GTA
You can do the calculation yourself: Premium = Probability * Payout, the probability should be at least 5%, else the dealer is stupid not ripping enough off you. Realistically, 1/365 days is just 0.27% of the time, assuming you blow 1 tires per year and done so every year.

Your only concern is, can I afford the bad scenarios with own cash, if you had to sell a kidney, no question asked get it. Mind you, that insurance does not cover tow, or any other negative consequence on top of that, getting late for wedding, wife had to give birth on car...etc.

$350 is a good profit, given policyholders' tire/rim risk is uncorrelated, the more they sell the more profit they get.

Gosh, I wish I could sell those policies.

I would not buy, instead, put that money in ING Rainy Day Fund to cover ANY small risks like that. If it's $30 or $50 just grab it not even worth the time to ask the question.
Deal Expert
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Jul 30, 2007
25081 posts
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Toronto
Op,

Can you further disclose the warranty details on this type of coverage. What does the warranty say ? What does the fine prints say ? You will need to understand this before deciding.

- any Deductible ? for each occurrence for tire
- any Deductible ? for each occurrence for wheel

Say there is no deductible, Is there a cap on each occurrence ? For example, if your blown tire cost $350. Warranty say you are allowed only $300 per tire per occurrence, therefore, you are still on the hook for $50. Same apply to the wheel. Typically, if the wheel suffers curb rash, dealer will not replace it with new rim and simply ship it out for re-surfacing.

Bottom line is if there is some sort of deductible or allowance capped, then this warranty offering is not feasible. That's my opinion.

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