[dr_glenn]

I was offered two different contracts: (1) extended warranty, basically gives me bumper-to-bumper coverage for 8 years and (2) Honda Care service contract for either 3 or 5 years and brake replacement or not.
I took both. I do not have my invoice in front of me now, but I think I paid $1,400 for extended warranty and $1,000 for Honda Care for 5 years with brake replacement.
For extended warranty I reasoned that this was a new model (even though many components already exist in other models that have been out for a year or two) and also any one of the electronic sensors would cost hundreds to replace.
For Honda Care, you get one key fob replacement during the term of the contract - that's worth $300, so although you might not need it, you may as well deduct that from the contract price. I get all regular service appointments for 5 years. If I get service 2x per year, I estimate that's $80 * 2 * 5 = $800. Brake replacement, both front and rear is covered in the 5 year contract - that costs a pretty penny. Even if it turns out that I could have gotten all this service cheaper by going independent, I'm sure I couldn't save much - I like that I'm paid up front. Note: I think the Honda Care contract can only be used at the dealer where I purchased it.

What do you think? Worth it or not?

 

[ronnie]

I never buy extended warranties on any products I purchase. Here's what Consumer Reports says.

Don't Buy Extended Warranties

When an Extended Car Warranty Is Worth It

 

[J. Bond]

Dr. Glenn, appreciate the #s and your reasoning is sound.

If you have a good dealer, especially one that's close, and the fine print doesn't have any major gotchas, then coverage makes sense. I often get Square Trade or Apple Care+ coverage on my Macs and i-devices and have used it a couple of times. It makes repairs fast and hassle free — and has saved me a bundle. Plus, they often upgraded other things, too. While there have been several items I haven't used it on, peace of mind is helpful.

Often paying extra upfront is worth it for that!

The Clarity forum folks were confident that all Honda dealers have to accept a Honda Care policy. That makes sense as one could be driving somewhere else or move and the coverage goes with the car!

 

[sEXzNsite]

Extended Warranty Alternative

Dealer Extended Warranties can be quite expensive not to mention DO NOT ALWAYS cover everything even if stated, "Bumper to Bumper" because most likely there are some exclusions. If you've purchased an Extended Warranty or plan to purchase one, make sure you read everything and don't assume.

The true Bumper to Bumper warranty is basically the Manufacturers 3-year/36,000 warranty that comes with a new car, however make note its limitation is "Whichever Comes First". If you drive a lot of miles you could rack up 36K in one year and then poof the warranty is over. Or if you're like my wife who only drives 5K/year (the Insight is her car) she'll only have put on 15K miles before the warranty is over. And at 15K the car is just breaking in and my luck is if something was going to go wrong it'll probably be after the 15K!.

As for me I did not purchase and Extended Warranty, but instead opted to go through my auto insurance company for their Extended Warranty Service. I have Geico and they offer "Mechanical Breakdown Insurance". The insurance includes ALL PARTS & SYSTEMS not just the specific list of items covered by most dealer warranties and lets me get my car repaired wherever I want. It only costs $5 dollars a month or $60/year and is renewable for up to 7 years/100K whichever comes first. There is however a $250 deductible for each occurrence.

The coverage is available for cars under 15 months old and 15K miles, so since I'm covered under the MFG 3/36 I won't apply for it until 14 months from now (May 2020) and then I'll be covered up through 2028 or 100K miles. In dollars and cents it'll cost me a base $480 ($60x8) plus the $250 for each occurrence AFTER the MFG 3/36 expires. If I end up having 4 occurrences within the following 5 years after the MFG warranty expires then the extended warranty would have cost me $1,480. If less occurrences, all the better! The amount is probably less than the standard dealer extended warranty and it's the true Bumper to Bumper just like the MFG warranty.

So if you don't have Geico Insurance, look into it for both your home and auto insurance needs. I've had AllState and AAA and they cannot touch my Geico premium. The auto premium for the Insight only costs $320 every 6-months for FULL coverage with high coverages.

https://www.geico.com/auto-insurance/mechanical-breakdown-insurance/

 

[ScubaGuy]

Dealer Extended Warranties can be quite expensive not to mention DO NOT ALWAYS cover everything even if stated, "Bumper to Bumper" because most likely there are some exclusions. If you've purchased an Extended Warranty or plan to purchase one, make sure you read everything and don't assume.

Glad you started this thread. We all need to be Educated on Extended Warranties, and I made two mistakes in buying this at the Dealership, but in hindsight I do not regret it because of the complex nature of 2019 Insight with 2x Electric Motors and 2x Batteries as well as the computerized system inherent in this highly efficient (40.5% Thermal Engine Efficiency Atkinson Engine) and everything else. Why Regret? I negotiated and paid $1,200 for 7-years of coverage and only had a $50 Deductible and the Dealership will Honor the entire agreement. I can't recall the Underwriter, but when you look at what Insurance firms offer up I guess I still feel better that the Dealership had a better relationship with the Insurer (someone can correct me here and please do).

Now, here's where it gets interesting for those of us whom decided to Refinance the New Vehicle Purchase after leaving the Dealership (I know, backwards, but it's still correctable). In my case, I had a high credit score of 800 and the best the Dealer could do after giving me $4,500 for my '08 Accord trade-in is 6.44%! Yeah, I was about to walk out on that, but Free Money-Ride is over with the FED raise interest rates, but I knew I could get way below that so I let that go. I got it down to 5.44% and signed.

When I went to shop online for Refi (LendingTree) of an Auto Loan, guess what? I got offers of 3.89% and ultimately accepted a 3.49% at 72 months (same terms as signing at Dealership).

So, here's the thing even on Refi..... several of the Quotes received buried / "assumed" you would want GAP insurance, Extended Warranties, AND get this, APS Insurance!! So, buyer BEWARE and READ line by line what you are signing just as if you were back in that grey / green room of the Finance "Business Guy" at the Dealership. Boy, is it a GAME! Even with the Banks and Brokers who have to constantly answer queries of people shopping for 1) RATES; 2) MONTHLY PAYMENT; 3) LIFE OF LOAN (TERMS). It's a SHELL game folks. Just be sure you read everything.

***I Refinanced with RateGenius because they had the highest User Rating and Best Overall experience, and mine was no different. Knocking down 2% Points off the Loan paid the Extended Warranty and the GAP only cost me $200 for the life of the Loan.****

Insurers call Extended Warranties as: Vehicle Service Contract (VSC) & Mechanical Breakdown Insurance (MBI).

Gap - $795 --- SHOP Around
APS - $999 ---- AVOID, AVOID!!

APS - Insurance Underwriter = Securion Financial Group
* All Deductible Included (APS) 2x Deductibles per year.
* Covers Door Dings, as long as no Paint dmg

Warranty - $2,335.81 (8yr, 125K miles) --- Seems nice? There were 18 Exclusions!

Interstate National Extended Warranty
http://www.interstatenational.com/
Paint-Dent-Repair-or-Windshield-Repair included. Key Guard covered up to $800; Re-Programming of Key Fob.

 

[Insighter2019]

Hi Guy’s just got my new insight ex model last week. Just had a question, is it worth buying the extended warranty from the dealer??

 

[redsoul210]

Hi Guy’s just got my new insight ex model last week. Just had a question, is it worth buying the extended warranty from the dealer??

I would just put the money the warranty cost aside for maintenance and future repairs.

 

[andrew28]

Hi Guy’s just got my new insight ex model last week. Just had a question, is it worth buying the extended warranty from the dealer??

It depends... Is it Honda Care or some 3rd party extended warranty? I would advise getting quotes from Honda Care dealerships online and compare them.

I would just put the money the warranty cost aside for maintenance and future repairs.

I'm planning on doing this similar to my previous cars but am still open to buying one online depending on what problems I see reported here or elsewhere.

 

[Insighter2019]

My Honda dealer is offering one bumper to bumper warranty for 10 years 100000 miles. It’s from third party. Also ZERO deductible. The total cost with taxes is around $2700.00.I called other companies but nobody could beat the dealer price. Still not sure is it worth it or not? Considering all the bells and whistles we have in this car. Any input would be greatly appreciated. Thanks

 

[insightfully]

Here are a couple threads that might be helpful: This one has comments on third party (and Honda Care) along with pricing info, and this one suggests a few alternatives and watchouts.

 

[andrew28]

My Honda dealer is offering one bumper to bumper warranty for 10 years 100000 miles. It’s from third party. Also ZERO deductible. The total cost with taxes is around $2700.00.I called other companies but nobody could beat the dealer price. Still not sure is it worth it or not? Considering all the bells and whistles we have in this car. Any input would be greatly appreciated. Thanks

I personally wouldn't buy a 3rd party warranty no matter how good the deal.

• Might not exist down the road and go bankrupt
• Might not pay for OEM parts
• Usually written in a way to easily deny claims
• Need to ask them for prior approval before any repairs can be started

If you must get an extended warranty, get the one backed by Honda.

• Work done by Honda techs
• OEM parts
• No need to deal with a 3rd party, just the dealership
• Repairs can be done at any Honda dealership
• You can buy a Honda Care warranty from any Honda dealership(including on the internet) allowing you to comparison shop

 

[Verdier]

My Honda dealer is offering one bumper to bumper warranty for 10 years 100000 miles. It’s from third party. Also ZERO deductible. The total cost with taxes is around $2700.00.I called other companies but nobody could beat the dealer price. Still not sure is it worth it or not? Considering all the bells and whistles we have in this car. Any input would be greatly appreciated. Thanks

That's way to high in my opinion. I would look for a quote on Honda care online. College hills has good prices I've heard.

 

[mgldan]

That's way to high in my opinion. I would look for a quote on Honda care online. College hills has good prices I've heard.

Hyannis and Saccucci had the least expensive Honda Care, back when I looked. College Hills offered to match, but not to beat, their price.

I'm going with the Geico MBI insurance that I mentioned in the thread @insightfully linked above. Now that I'm past 6,000 miles I'm not eligible for Honda Care's least expensive prices.

 

[Carfreak09]

I personally wouldn't buy a 3rd party warranty no matter how good the deal.

• Might not exist down the road and go bankrupt
• Might not pay for OEM parts
• Usually written in a way to easily deny claims
• Need to ask them for prior approval before any repairs can be started

If you must get an extended warranty, get the one backed by Honda.

• Work done by Honda techs
• OEM parts
• No need to deal with a 3rd party, just the dealership
• Repairs can be done at any Honda dealership
• You can buy a Honda Care warranty from any Honda dealership(including on the internet) allowing you to comparison shop

I tend to agree that 3rd party warranties are to be avoided but it depends on the company backing it. In my case, I purchased the Fidelity Platinum coverage for 5 years/120k. Fidelity is a strong well known company and can be trusted to be there years in the future. Also, the $100 deductible is waived if the repair is done by the selling dealer, which in most people’s case would be the dealer they plan on going to for warranty work. Since it’s a Honda dealer, Honda techs will work on it and Honda parts put on it, so the Honda Care loses its only positive. The exclusions list is small (basically brake linings and radiator hoses) and it specifically says that Lithium Ion batteries ARE covered. In this case, I think it’s a decent option. I’ve never purchased one before and declined it 2 times until the price magically went down to something I could stomach. I’m still not sure it’s worth the money but with the high amount of tech in this car, I think the piece of mind is nice.

By 120k, my mom’s previous Acura TSX had 2 failing power door lock actuators and a drivers seat that constantly rocked side to side in its mounting. The driver’s power window also jumped its track and cost some money to fix.

 

[sEXzNsite]

As for me I did not purchase and Extended Warranty, but instead opted to go through my auto insurance company for their Extended Warranty Service. I have Geico and they offer "Mechanical Breakdown Insurance". The insurance includes ALL PARTS & SYSTEMS not just the specific list of items covered by most dealer warranties and lets me get my car repaired wherever I want. It only costs $5 dollars a month or $60/year and is renewable for up to 7 years/100K whichever comes first. There is however a $250 deductible for each occurrence.

https://www.geico.com/auto-insurance/mechanical-breakdown-insurance/

I just wanted to hi-lite where MBI allows one to take their car for repair. I've hi-lited it in RED in the quote above,

MBI lets me get my car repaired WHEREVER I WANT and that INCLUDES A HONDA DEALER!

 

[insightfully]

I tend to agree that 3rd party warranties are to be avoided but it depends on the company backing it. In my case, I purchased the Fidelity Platinum coverage for 5 years/120k. Fidelity is a strong well known company and can be trusted to be there years in the future. Also, the $100 deductible is waived if the repair is done by the selling dealer, which in most people’s case would be the dealer they plan on going to for warranty work. Since it’s a Honda dealer, Honda techs will work on it and Honda parts put on it, so the Honda Care loses its only positive. The exclusions list is small (basically brake linings and radiator hoses) and it specifically says that Lithium Ion batteries ARE covered. In this case, I think it’s a decent option. I’ve never purchased one before and declined it 2 times until the price magically went down to something I could stomach. I’m still not sure it’s worth the money but with the high amount of tech in this car, I think the piece of mind is nice.

Questions - when extended warranties are purchased, do they overlap with the manufacturer new car warranty for the first 3 yr / 36k miles? Are both coverages used in that timeframe, or is one primary over the other? And should a 5 yr / 120k mile warranty be thought of as really an extra 2 yr / 84k miles (good for those with high mileage annual driving)?

 

[andrew28]

I tend to agree that 3rd party warranties are to be avoided but it depends on the company backing it. In my case, I purchased the Fidelity Platinum coverage for 5 years/120k. Fidelity is a strong well known company and can be trusted to be there years in the future. Also, the $100 deductible is waived if the repair is done by the selling dealer, which in most people’s case would be the dealer they plan on going to for warranty work. Since it’s a Honda dealer, Honda techs will work on it and Honda parts put on it, so the Honda Care loses its only positive. The exclusions list is small (basically brake linings and radiator hoses) and it specifically says that Lithium Ion batteries ARE covered. In this case, I think it’s a decent option. I’ve never purchased one before and declined it 2 times until the price magically went down to something I could stomach. I’m still not sure it’s worth the money but with the high amount of tech in this car, I think the piece of mind is nice.

By 120k, my mom’s previous Acura TSX had 2 failing power door lock actuators and a drivers seat that constantly rocked side to side in its mounting. The driver’s power window also jumped its track and cost some money to fix.

I'm not familiar with Fidelity Warranties(except Fidelity Investments which is a separate company). 3rd party warranties technically are accepted everywhere because they just pay for the repairs in cash minus the deductible. Unless your contract specifically states OEM parts, I wouldn't be so sure that you can guarantee this, by bringing it to your dealership. I have seen situations where the 3rd party company gets into an argument with the dealership repair quote and wouldn't approve the repair due to unacceptable hourly rate/cost. Dealerships usually do repair work at a lower pre-negotiated hourly rate for warranty and extended warranty work backed by the automaker. Lots of dealerships in my area won't even sell Honda Care. The 3rd party warranties are more profitable to sell, when that same customer brings the car back for repairs, they can charge the regular hourly rate/cost. The contract could say it covers a certain item but these things are written by lawyers who are paid to save the company money. If they couldn't make money selling these contracts, they wouldn't offer it in the first place. This also applies to the manufacturer backed warranty but the manufacturer can control the cost by having pre-negotiated repair rates with the dealerships. My advice would be to google the 3rd party company that backs your warranty and see what other consumers have to say about the claim process.

 

[Johudso7]

I too suggest staying away from 3rd party warranties. I’m no expert by any stretch of the imagination, but let’s say (theoretically) your Insight needs a repair that falls under the warranty and they use a non OEM part as their repair/replacement as it’s more cost effective for the warranty company. Whereas if you went with Honda Care, I feel like (again, not 100% positive as I am not an expert) they would use an OEM part that was as good if not better than what was originally on the vehicle. Also, my 8 year, 120,000 mile bumper to bumper warranty with zero deductible was just under 1,200 with no sales tax as I do not reside in the state that I purchased the warranty from.

To me, it’s a good value especially with such a new model. But again, it’s a Honda so I will likely not need it. But I do feel better having it.

With any warranty, it’s kind of a gamble. Good piece of mind to have in my opinion. Just be sure to make a good financial decision for you.

 

[Carfreak09]

Questions - when extended warranties are purchased, do they overlap with the manufacturer new car warranty for the first 3 yr / 36k miles? Are both coverages used in that timeframe, or is one primary over the other? And should a 5 yr / 120k mile warranty be thought of as really an extra 2 yr / 84k miles (good for those with high mileage annual driving)?

The factory warranty would be primary although if a factory warranty repair was declined due to owner neglect, then I’m sure the extended warranty would also decline the repair. And yes, it should be looked at as an extra 2 yr/84k coverage. I went with it because by 5 years, I will likely have more then 120k at my current usage. It was cheaper then longer terms as some parts tend to fail more on time then mileage.

 

[Insighter2019]

Thanks guys for your insights about getting the extended warranty. From what I have read and asked couple of Prius owners, I am not going to take warranty. Will hope for the best. Thanks again.