Automotive

Bought New Car- Can I cancel Tire/Rim Insurance British Columbia?

  • Last Updated:
  • Nov 2nd, 2020 3:22 pm
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes

Bought New Car- Can I cancel Tire/Rim Insurance British Columbia?

Hi

I just bought a new car (Mazda CX-5) - so excited about it.. but in the financing office he told me that the cost included tire and rim insurance luxury- for a lot of money.. I did not have to get it but my husband said I should.. and the finance guy really talked it up.. for some reason as well they added it into the initial price that they did the financing on, without telling me, before I even went into the financing office.

I came home (I go to pick up the car on Monday), and looked online about it and it doesn't sound great.. Reading over the fine print too, it's got limits on many costs, plus I think they way overcharged me for it.. It includes keys, paintless dents, burns and cuts in the fabric and rims and tires up to a certain amount. For 5 years. it was $1995 CAD.

Anyways- on the insurance warranty it looks like I can cancel it minus $100 and taxes.. But since it is through financing will that be a problem? Or because it is on the sales contract will it be a problem (it is through another company)

Would appreciate any insight :) And if it will be possible to cancel. I did not go for extended warranty insurance past the initial warranty

Thank you

Thanks for any input !
32 replies
Deal Fanatic
User avatar
Jul 26, 2007
5503 posts
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Toronto
There should be a clause that say on your bill of sale, any additional extended warranty or insurance can be cancelled within 30 days without incurring any penalty.
Deal Addict
Jan 17, 2009
3201 posts
3137 upvotes
Toronto, Ontario
peteryorkuca wrote: There should be a clause that say on your bill of sale, any additional extended warranty or insurance can be cancelled within 30 days without incurring any penalty.
Yep have to look in the documents, it was one of the sales guys pitches too: "just get it because you can always remove it in the next X days if you change your mind, but you can't add it later" lol
Deal Fanatic
Apr 5, 2016
5337 posts
3803 upvotes
Calgary/Vancouver
I like to get tire/rim insurance cause there’s always shitty potholes hiding somewhere especially if there’s snow on it. Not just that, but nails are everywhere since there’s construction all the time.

However, I always negotiate that. Will never pay two thousand for it. Most I paid, is less than $1000.

I believe you can cancel it, and they mail you a cheque for the refund. The financed amount stays the same but you can put that amount towards your loan to save interest.
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
Great! Thanks so much! And yes- it threw me as it was added in. WE live an hour away from the dealership so thinking I would just pay for the $70 and $2000 is crazy. Glad you think it will be honoured!
Wasn't sure as it was in the contract!
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
peteryorkuca wrote: There should be a clause that say on your bill of sale, any additional extended warranty or insurance can be cancelled within 30 days without incurring any penalty.
I didn't see this or ask about this... I hope it can be.
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
Kiraly wrote: Tire/rim insurance? Basically sounds like an extended warranty for your tires and rims, for TWO THOUSAND dollars?? Holy...
I know- ridiculous right?
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
bomber17 wrote: I like to get tire/rim insurance cause there’s always shitty potholes hiding somewhere especially if there’s snow on it. Not just that, but nails are everywhere since there’s construction all the time.

However, I always negotiate that. Will never pay two thousand for it. Most I paid, is less than $1000.

I believe you can cancel it, and they mail you a cheque for the refund. The financed amount stays the same but you can put that amount towards your loan to save interest.
Great! Thanks so much! And yes- it threw me as it was added in. WE live an hour away from the dealership so thinking I would just pay for the $70 and $2000 is crazy. Glad you think it will be honoured!
Wasn't sure as it was in the sales contract
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
Ecsta wrote: Yep have to look in the documents, it was one of the sales guys pitches too: "just get it because you can always remove it in the next X days if you change your mind, but you can't add it later" lol
I don't think that is in there... will it be a problem for me to cancel?
Deal Fanatic
Apr 5, 2016
5337 posts
3803 upvotes
Calgary/Vancouver
Best thing for you is to call the service provider for the insurance and get them to cancel. Don't contact the dealer cause they are going to deny this and that and create a huge hassle for you. They should've given you an insurance package with full details on how to cancel and the terms and conditions.
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
bomber17 wrote: Best thing for you is to call the service provider for the insurance and get them to cancel. Don't contact the dealer cause they are going to deny this and that and create a huge hassle for you. They should've given you an insurance package with full details on how to cancel and the terms and conditions.
Already wrote them an email.. But on the terms and conditions the cancellation has to come through the dealer anyways- written. I figure if they hassle me, or give me a problem I will tell them I will take my business else where (I want to get roof racks, trailer hitch, would do all my oil changes and maintenance there) etc.. We live 1/2 way between to Mazda dealers so just as easy to go to the other one for all our extra work.. So maybe that will help.. will just see. And yes it's surprising they didn't go over it better or tell me about the cancellation (or non cancellation policy) so I will make that clear too.. Will see how it goes.. Thanks!
Deal Fanatic
User avatar
Oct 12, 2007
5570 posts
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Ottawa
I bought two cars at different dealerships this year and another vehicle at a third dealership back in 2018 (first car purchases since 2012). 2018 was the first time I had heard of buying tire/rim insurance. It was offered to me at that time and I declined. This year, it was included in the financial agreements both times and I requested it be removed. They talked it up both times but they didn't insist after I held my ground. I have lost exactly one tire due to a sidewall puncture and that was back in the 80s so I don't consider it to be a great risk. Plus I consider myself to be self-insured. If I lose a tire tomorrow, I will buy another (or two) and have no regrets whatsoever for saving the hundreds (or thousands) on the three cars.
Deal Addict
Nov 16, 2011
1328 posts
1023 upvotes
HAMILTON
per the OP " It includes keys, paintless dents, burns and cuts in the fabric and rims and tires up to a certain amount. For 5 years. it was $1995 CAD "

So this is not just tire/rim insurance.

For 2k considering dents, keys, etc it may not be too bad of a deal and worth keeping.
Deal Fanatic
User avatar
Oct 12, 2007
5570 posts
3144 upvotes
Ottawa
luckystrike1 wrote: per the OP " It includes keys, paintless dents, burns and cuts in the fabric and rims and tires up to a certain amount. For 5 years. it was $1995 CAD "

So this is not just tire/rim insurance.

For 2k considering dents, keys, etc it may not be too bad of a deal and worth keeping.
I don't disagree (and yes, that part of the OP's post did not really register with me) but $2k is still a lot. All of us here already have car insurance for the serious perils. The perils we're talking about here are very very minor. I suppose if you were forgetful, klutzy, smoked in your car, or parked your car in bad neighbourhoods, or otherwise had elevated risks or just a low tolerance for bad things happening it might be "worth it". I know everybody is different and have different tolerances for experiencing pitfalls so this kind of blanket insurance will obviously appeal to some. I would see this as being maybe "worth it" on an Aston Martin but a CX-5?
Deal Addict
Dec 4, 2011
1711 posts
1198 upvotes
Montréal
Tire rim insurance on a car like my R that has fragile 19" Pretoria wheels at $1000 a pop can be worth it on our roads. Can't see Mazda wheels being that pricey.
Deal Addict
Apr 10, 2002
2223 posts
707 upvotes
Central Ontario
admiralackbar wrote: Tire rim insurance on a car like my R that has fragile 19" Pretoria wheels at $1000 a pop can be worth it on our roads. Can't see Mazda wheels being that pricey.
+1

A quick investigation shows that even the 20" OEM wheels aren't even $350/each from a Mazda dealership.
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
Thanks everyone for your replies. I feel very scammed, which sucks as it is my first new purchase. I knew full well going in I wanted NO extra insurance, and so didn't click really to it.. as it was added in and this was after being at the dealership for about 3 hours.
All I can do is ask and see if I can get it taken off.... Not sure if they will let me or not as everything is signed.. But we live 1 hour from the dealership, and there is no way I would go there to fix a flat tire.. we have no kids or dog to make scratches in the leather.. and will take our chances with a key..
The mazda does have 19 inch wheels.. Have no idea how much they cost..
Thanks so much! I apprecaite the input and insight!
[OP]
Newbie
Oct 31, 2020
15 posts
2 upvotes
hightech wrote: Looks like you didn't read my New Car Buying Guide. sticky-car-buying-tips-tricks-2398494/

Hopefully you can get out of it or else chalk it up to a lesson learned.
Oh I knew full well going in not to do this.. I just got thrown with the way it was woven in and presented.. Will be an expensive lesson learned.. but now I know.. and hopefully I can get out of it.

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