I bought insurance to protect me from the high cost of mechanical failures. I paid around $2000.00 for 84 Months or 100,00 miles.
I have 15 days to cancel the contract from Advantage by going to the dealer I believe I would not of been offered this mechanical insurance if they thought it was not in their best interest not mine.
Should I cancel?
Thank you
Paz
I think you are better off putting the money in savings and reserving it for any mechanical failures. Do a search on this website and out on the internet, and you find alot of unhappy customers, including a large number of companies who will do anything but pay off. Several State Attorneys General are suing many of these companies; I don’t know if yours is one of them, but I would not take a chance.
Most of us here do not beleive any of these “Insurance Service Contracts” are good value for money. I turned down the one offered on my new Toyota.
I would cancel and put the $2000 in a high interest account. You will likely not use it in the 4 years covered.
The lastest isue of Consumer Reports has an article on the policies and states that they are not a good “investment”. On consumer goods they pay an average of 12 cents for every dollar in policy costs. For cars it’s a little higher, about 25%.
Your $2000 invested will earn about 25% or more over that time!
Well any car can have major expensive repairs.
The profit to the salesman and company is usually over 50%. So for every $1,000 you spend the insurance company has less than $500 to pay for repairs or they will loose money, something insurance companies do not do. Some people will get nothing back and some will get a lot more than they pay. Most will get far less. In addition you need to keep in mind that the insurer has worded it to eliminate as many expensive things as they can.
Remember that the seller is out to make money and they get to write the rules and set the price. They are not going to sell them at a loss so one way or another they are going to have you pay more than they will pay out.
Would you gamble with a car dealer who gets to set all the rules and knows all the odds?
Your decision has to do with the value of the piece of mind it gives you. If that is worth the cost then buy it. Don't expect it to cover everything however, most are written to keep cost down and exempt what they know will cost them money.
Good Luck
I am going to go with the audience, as I feel they are right and have sound reasons.
Thank you all.
Paz