I didn’t find any information domestically (I’m here in Israel), so I’m reaching out over the ocean to the Car Talk Community.
I have a Prius which was put on the road in 2011 (August). Apparently, the warranty is up, since we started getting brochures from the dealer/service center hawking their Extended Warranty. In general, what I’ve read on the internet (and here on the site: http://community.cartalk.com/discussion/2296818/ ) seems to indicate that Extended Warranties in general are a waste of money and in particular for the Prius. But on the other hand, they always get you with the fear that “well, if it breaks down and you need a new battery, it could be upwards of $3,150 to replace the battery…” So I thought I would consult with you guys.
Here are the details about the car:
The car has about 70,000 miles, and as I said, it’s a little over three years old. It saw some heavy use for the first 2.5 years, but now it’s less heavily used (my wife drives about 20 miles back and forth to work, occasionally we’ll take a longer trip on the weekend, maybe 80-90 miles).
The terms of the warranty are as follows:
It only covers a failure of the hybrid battery (parts and service).
It costs $78.60 for 1 year of coverage or 9,320 miles, whichever comes first.
The policy can be renewed until the car is 10 years old (no upper limit on mileage, though you would have to pay each time you hit the 9.3k limit).
So my question is: is this worth it?
Any input would be much appreciated. On the one hand, $79 a year doesn’t seem so bad to not have to worry about getting slapped with a $3150 bill. But on the other hand, if that money is really not needed, then it can be put to other use than paying into an insurance plan that isn’t worth it.
If we do buy the plan for each of the next 7 years, it will cost us more than a sixth of the replacement cost. Does that mean we should only do it if we think there’s a greater than 1/6th chance of the battery failing? (sorry for nerding out)
Thanks again to all.