Extended warranty advice

[Jay_Jeep]

I have a’23 Reign (custom order) with 23,000 miles on it and I usually only keep a Jeep for 4-5 years regardless of miles. I’ve never purchased an extended warranty and was curious on thoughts or experiences with it. My reasoning is, I plan on keeping it and passing it on to the kid when she is 16 next year and just ordering a ‘26 when those order banks open in the fall of 2025. She will get the Reign with about 35,000 miles by that time. So are they worth it? I don’t even know the cost or options, any suggestions or assistance would be appreciated.

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[jludave]

any suggestions or assistance would be appreciated.

https://www.jlwranglerforums.com/fo...arranty-help-you-beat-inflation.130724/unread

 

[TheRaven]

For the JL, absolutely. I would not recommend owning one without a warranty. It sounds like you should go for the longest term you can. Look up Tom Winkels at Hayes Jeep to get a price.

Also note - I believe it's at 2years or 24k miles that the warranty jumps in price BIG TIME. So get it ASAP. I got 5yr/75k B2B coverage at the time of purchase for $860. I think 8yr/120k was like $1200ish. You'll be paying more than that now because of your mileage but not as much as you will be if you wait.

 

[GATORB8]

I would only go with an extended warranty for a vehicle I was keeping stock.

 

[John VonJeep]

I would only go with an extended warranty for a vehicle I was keeping stock.

Yep. Lots of disclaimers in those warranties.

 

[Barney392]

I have a’23 Reign (custom order) with 23,000 miles on it and I usually only keep a Jeep for 4-5 years regardless of miles. I’ve never purchased an extended warranty and was curious on thoughts or experiences with it. My reasoning is, I plan on keeping it and passing it on to the kid when she is 16 next year and just ordering a ‘26 when those order banks open in the fall of 2025. She will get the Reign with about 35,000 miles by that time. So are they worth it? I don’t even know the cost or options, any suggestions or assistance would be appreciated.

Cant beat these guys:

https://www.buymoparwarranty.com/

 

[AndySpill]

I have a’23 Reign (custom order) with 23,000 miles on it and I usually only keep a Jeep for 4-5 years regardless of miles. I’ve never purchased an extended warranty and was curious on thoughts or experiences with it. My reasoning is, I plan on keeping it and passing it on to the kid when she is 16 next year and just ordering a ‘26 when those order banks open in the fall of 2025. She will get the Reign with about 35,000 miles by that time. So are they worth it? I don’t even know the cost or options, any suggestions or assistance would be appreciated.

This may sound arrogant but here is the correct unalienable truth.

You may enjoy the peace of mind a warranty brings, you may even be one of the few who ends up incurring more covered repair expenses than the cost of the coverage, but statistically warranties are, by design, written to make those that issue them money, which means that by definition, they can only make that money at the expense of those who buy them, and this can only happen if the premiums, plus interest made on that money, exceeds what the insurer pays out in claims.

Surely you've seen those Carshield commercials and other competitor products on TV. On comes some policy holder who, even truthfully, talks about how much money that policy saved them. Sounds great right? Here's what you don't see. You don't see the 61 people for every one like the one who gave favorable testimonial, who--even if they are happy with their warranty purchase decision--paid more for the coverage than any reimbursement they received from it.

Ask the insurer if they take the premiums and invest them in....wait for it...car warranty policies. They don't. Because they're dis-, not investment vehicles.

All this said I understand those who buy them. For people living close to their expenses they may help hedge against repair costs, but those far savvier than me would suggest the harsh reality that maybe a less expensive vehicle than a Wrangler might be best for them. Other people like the peace of mind warranties offer. I get that. But statistically if you take those monies you'd spend on the warranty and invest them, you will come out ahead.

So everyone is extremely clear and what "statistically coming out ahead" means: please understand, some owners who take this advice may end up spending more in repairs out of pocket. I'm not guaranteeing everyone will save money. I am saying that on average far more people will spend less paying for repairs with that saved money than putting it to a warranty.

I'm not anti-insurance. I'm a huge proponent, but insurance that covers potential catastrophic costs, like medical insurance, or that mandated by law such as auto liability.

 

[Old Dogger]

For the JL, absolutely. I would not recommend owning one without a warranty. It sounds like you should go for the longest term you can. Look up Tom Winkels at Hayes Jeep to get a price.

Also note - I believe it's at 2years or 24k miles that the warranty jumps in price BIG TIME. So get it ASAP. I got 5yr/75k B2B coverage at the time of purchase for $860. I think 8yr/120k was like $1200ish. You'll be paying more than that now because of your mileage but not as much as you will be if you wait.

Cant beat these guys:

https://www.buymoparwarranty.com/

All great advice above. And yes, when one plans on keeping a Wrangler long term, beyond the standard factory warranty, Then I wouldn't be with out it. Just make sure that you get the MOPAR Max extended warranty Insurance policy. Third party warranties, are a no go...........

 

[JEEP4U]

Help Stellantis out........ Just get a new one.

 

[Jay_Jeep]

I see that point, I’m really just trying to see if there is any benefit. The Reign was paid off in 10 months so any maintenance costs would be just that. I suppose another option would be open a savings account with the cost of the warranty and add some funds to it monthly in the event higher end item events occur.

 

[TheRaven]

I see that point, I’m really just trying to see if there is any benefit. The Reign was paid off in 10 months so any maintenance costs would be just that. I suppose another option would be open a savings account with the cost of the warranty and add some funds to it monthly in the event higher end item events occur.

The answer is YES. There is A TON of benefit. You will spend far more in repair cost than the cost of the warranty. DO IT.

The idea that "warranties only work because they bring in more money than they spend" is obsolete information. Modern warranties don't work that way. When it comes to the JL, YOU NEED A WARRANTY.

 

[GATORB8]

I see that point, I’m really just trying to see if there is any benefit. The Reign was paid off in 10 months so any maintenance costs would be just that. I suppose another option would be open a savings account with the cost of the warranty and add some funds to it monthly in the event higher end item events occur.

Realistically, your daughter will still be within powertrain warranty through high school, and the extended warranty probably won't really kick in until she's in college.

I'd think there's likely some benefit to her not worrying about a big expense then (or potentially having to call you to ask for money for a big expense). Also, it may make her feel more comfortable properly maintaining and repairing the vehicle during that time.

 

[AndySpill]

The answer is YES. There is A TON of benefit. You will spend far more in repair cost than the cost of the warranty. DO IT.

The idea that "warranties only work because they bring in more money than they spend" is obsolete information. Modern warranties don't work that way. When it comes to the JL, YOU NEED A WARRANTY.

If a warranty is your thing, say because you're worried or need to guarantee that you'll never pay for certain covered repairs out of pocket because your financially living closer to your expenses than paying out of pocket would allow, get a warranty.

But that said Kevin's comments are provable wrong and its not anyone's opinion.

If warranties failed to bring in more money for those that underwrite them than that they spend the warranty company would become financially insolvent, unable to pay its claims. As a private insurance, I suspect it not subject to government reinsurance programs that would cover their insolvency like, say, the FDIC covers your bank deposits (to a certain amount) despite a bank's possible insolvency.

If warranties brought in no more money than that they paid out, including their cost to administer them, those who underwrite them, who do so with intent on making profit (not necessarily a bad thing, just a realistic one) would simply not underwrite them anyone more than you'd invest your money for retirement in a vehicle that guaranteed to provid you with no more money down the road than that you invested.

Modern warranties don't work that way. Really? With the passage of time underwriters have become sources of charity?

Look, there are some insurances, like government flood insurance that are ones that are supposed to run as close as possible to their cost to administer and pay out on. They are good and good to have. Government is suppose to be in the business of providing services, not profit. But private warranty companies simply don't work under this model.

Are some warranties better then others. Yes. Will a small set of policy holders save money yes. Are private insurers evil: no. But they make their money at statistical expense to their policy holders.

 

[Zandcwhite]

Modern warranties don't work that way. When it comes to the JL, YOU NEED A WARRANTY.

What do you mean they don't work that way? Are they in the business of losing money? The only way they make money is to sell more coverage than they end up paying out for. On a case by case basis, obviously there are those who end up with a $10k engine replacement free with there $3-5k extended warranty. Those are paid for by the people who never have anything covered and those who have dumb little things like broken visors covered. I'm not arguing for or against the extended warranty, that's an individual decision. The fact remains these companies all show net profits proving that they sell more policies than the value of their covered repairs period.

 

[GATORB8]

If a warranty is your thing, say because you're worried or need to guarantee that you'll never pay for certain covered repairs out of pocket because your financially living closer to your expenses than paying out of pocket would allow, get a warranty.

But that said Kevin's comments are provable wrong and its not anyone's opinion.

If warranties failed to bring in more money for those that underwrite them than that they spend the warranty company would become financially insolvent, unable to pay its claims. As a private insurance, I suspect it not subject to government reinsurance programs that would cover their insolvency like, say, the FDIC covers your bank deposits (to a certain amount) despite a bank's possible insolvency.

If warranties brought in no more money than that they paid out, including their cost to administer them, those who underwrite them, who do so with intent on making profit (not necessarily a bad thing, just a realistic one) would simply not underwrite them anyone more than you'd invest your money for retirement in a vehicle that guaranteed to provid you with no more money down the road than that you invested.

Modern warranties don't work that way. Really? With the passage of time underwriters have become sources of charity?

Look, there are some insurances, like government flood insurance that are ones that are supposed to run as close as possible to their cost to administer and pay out on. They are good and good to have. Government is suppose to be in the business of providing services, not profit. But private warranty companies simply don't work under this model.

Are some warranties better then others. Yes. Will a small set of policy holders save money yes. Are private insurers evil: no. But they make their money at statistical expense to their policy holders.

Not that I disagree with you, but another profit center to consider is the gift card effect. Let's say the company sold the warranty (service contract) for the exact average amount of claims. If 50% of purchasers either sold the vehicle prior to using the warranty or forgot they even bought it when it finally goes into effect, or simply lost the service contract, that's an automatic 50% profit.

I'd say the majority of people do not properly maintain or repair their vehicles (when's the last time you got in an uber that didn't have a CEL on?) adding to the profit.

I purchase one once, at my wife's demand despite my protest. It was on a used BMW coupe and cost $2,400 for the contract from a third party "warranty". I set my goal as having the vehicle perfect before I started modifying it. That warranty paid out $12k in 12 months.

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