I have been quoted twice 700.00 to repair two oil leaks at the timing chain gasket and the oil pressure sender/switch. Of course I would be replacing the timing chain but should I ALSO replace the water since they are in there and is there a cheaper way it appears 90% of this job is labor
Yes, you should replace the water pump also, as long as they are working on the timing chain. In essence, you should be paying only for the pump, and not for any additional labor to install it, since the bulk of the labor is for replacing the timing chain.
Timing chains do not need to be replaced unless there is some symptom to suggest otherwise. How much would this cost without the chain replacement? I would assume less. Replacing the gasket around the timing chain cover on most cars is a minor task. Again, unless your chain is making noise, do not pay to have it replaced.
This Particular Engine Has Been Known To Need Replacements Of Chains And Guides.
Chrysler makes and sells a kit for this.
These engines ( 2.7L 1998-2002 )are also on the dreaded engine sludge list.