Warranty
Rat Balls
Rennlist Member
Rennlist Member
Joined: Dec 2011
Posts: 3,636
Likes: 16
From: Scottsdale AZ, USA
I have to agree. I too have heard of lots of people claiming they recieved new engines. However, these big companies would not stay in business very long charging $3-4K for a warranty policy and paying everyone $20-30K for a new engines, plus all the other stuff they are supposed to cover. It makes no business sense....
And...if the number of 996's "blew up" just a fraction of what is implied in these forums, our cars would be uninsurable and/or have certain parts of the car excluded.
I have a warranty that has almost paid for itself with 20 months and 17k miles to go. If the engine blows up...and the cause is a covered part, then they will either replace the engine, or write me a check. If not, well, that's what lawyers are for.
Racer
Joined: Jan 2004
Posts: 356
Likes: 5
Your kidding right? If that were the case there would be NO insurance companies of any kind. Have you seen a catastrophic hospital bill lately?
And...if the number of 996's "blew up" just a fraction of what is implied in these forums, our cars would be uninsurable and/or have certain parts of the car excluded.
I have a warranty that has almost paid for itself with 20 months and 17k miles to go. If the engine blows up...and the cause is a covered part, then they will either replace the engine, or write me a check. If not, well, that's what lawyers are for.
And...if the number of 996's "blew up" just a fraction of what is implied in these forums, our cars would be uninsurable and/or have certain parts of the car excluded.
I have a warranty that has almost paid for itself with 20 months and 17k miles to go. If the engine blows up...and the cause is a covered part, then they will either replace the engine, or write me a check. If not, well, that's what lawyers are for.
3rd Gear
Joined: Jul 2006
Posts: 3
Likes: 0
My experience with Mercury for extended warranties has been good -- they paid for a new transmission on my SUV which totaled more than the price I paid for the policy, and I've already claimed 50% of the cost of the policy on my Cayman S (water pump) and I'm in my first of four years of coverage. However, statistically (if money is the only object), most people will not draw what they pay for a policy.
I liken extended warranties to collision insurance: odds are you won't need it, but at least you won't have to worry about a disastrous failure of some kind.
EDIT: Unfortunately, as of last month, Mercury doesn't offer coverage for Porsches through my broker. Boo.
Racer
Joined: Jan 2004
Posts: 356
Likes: 5
On the same token, the people whose engines fail and are covered by an extended warranty post less often, while those whose claims are denied post more often.
My experience with Mercury for extended warranties has been good -- they paid for a new transmission on my SUV which totaled more than the price I paid for the policy, and I've already claimed 50% of the cost of the policy on my Cayman S (water pump) and I'm in my first of four years of coverage. However, statistically (if money is the only object), most people will not draw what they pay for a policy.
I liken extended warranties to collision insurance: odds are you won't need it, but at least you won't have to worry about a disastrous failure of some kind.
EDIT: Unfortunately, as of last month, Mercury doesn't offer coverage for Porsches through my broker. Boo.
My experience with Mercury for extended warranties has been good -- they paid for a new transmission on my SUV which totaled more than the price I paid for the policy, and I've already claimed 50% of the cost of the policy on my Cayman S (water pump) and I'm in my first of four years of coverage. However, statistically (if money is the only object), most people will not draw what they pay for a policy.
I liken extended warranties to collision insurance: odds are you won't need it, but at least you won't have to worry about a disastrous failure of some kind.
EDIT: Unfortunately, as of last month, Mercury doesn't offer coverage for Porsches through my broker. Boo.
3rd Gear
Joined: Jul 2006
Posts: 3
Likes: 0
Thanks. Your experience supports what I was saying. You are an example of a "winner", twice apparently. Second, your point is well made that it is a personal decision based on risk tolerance. It's like me asking you if I should buy a red or white car. And finally, there is a reason Mercury does not warranty Porsches anymore through your broker...they probably did not meet their ROI targets. Thank goodness we all still have options to buy or not buy policies. That is a good thing.
Last edited by Latch; Feb 6, 2013 at 05:35 PM. Reason: mixed names up
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Former Vendor
Joined: Nov 2010
Posts: 6,968
Likes: 2,342
From: Cleveland Georgia
But that was in 2009, I haven't even considered or proposed a warranty based job since then.
Pro
Joined: Sep 2009
Posts: 512
Likes: 1
From: Northeast
There are many factors insurance companies not yet mentioned in this tread. There is a high number of people who buy warranties that pay up front for the policy and will most likely sell the car well before the coverage expires, or in some cases crash the car. This amounts to an important revenue source for the insurance company. The other revenue source not yet mentioned comes from investment revenue on the premiums paid in advance.
Regarding payment of new expensive 996 engines, I am a statistic having my 01 996 engine blow up due to intermix, then bought a crate factory engine $14k several years ago.. And no I didn't have any warranty of coverage.. If I had the choice to purchase a warranty that didn't guarantee engine replacement.. I would self insure before buying a dodgy policy.
Enjoy
Regarding payment of new expensive 996 engines, I am a statistic having my 01 996 engine blow up due to intermix, then bought a crate factory engine $14k several years ago.. And no I didn't have any warranty of coverage.. If I had the choice to purchase a warranty that didn't guarantee engine replacement.. I would self insure before buying a dodgy policy.
Enjoy
Rat Balls
Rennlist Member
Rennlist Member
Joined: Dec 2011
Posts: 3,636
Likes: 16
From: Scottsdale AZ, USA
I don't understand your point. No, I am not kidding... Insurance companies are like casinos...the house aways wins. Otherwise, there is no business. Do the math: for every $20K engine replaced, there needs to be 5 people who got nothing for their $5K policy (as example). We hear on these forums about engines getting replaced all the time (do a search!). While the number of ACTUAL engines as a % may be low, the % claimed on these posts are high. The people who bought the policy and had no claims generally do not post. They paid to protect themselves and are probably satisified...that is called "insurance". I do not imply any of this is wrong. My only point is that buying insurance is a personal decision. If you pay $5K for a policy and get a $20K engine, that's great. However, many others got nothing. That is my simple point. It is amazing how we all try to convince each other what is "right" when it is really a personal decision...there is no right or wrong answer.
The fact that many extended warranty companies will cover our cars, even with the "20+ known catastrophic failures" actually makes me feel better about their reliability. As you said, if the number of failures where high enough, the "casinos" would know that based on their data and exclude our cars (or failures attributed to certain parts).
Otherwise, they would certainly lose money.
But they don't.
Racer
Joined: Jan 2004
Posts: 356
Likes: 5
We may be making the same point in a different way. I agree that whether or not to buy an extended warranty is a personal decision. As a matter of fact, I was floored that someone with KK's mechanical abilities would even consider one
The fact that many extended warranty companies will cover our cars, even with the "20+ known catastrophic failures" actually makes me feel better about their reliability. As you said, if the number of failures where high enough, the "casinos" would know that based on their data and exclude our cars (or failures attributed to certain parts).
Otherwise, they would certainly lose money.
But they don't.
The fact that many extended warranty companies will cover our cars, even with the "20+ known catastrophic failures" actually makes me feel better about their reliability. As you said, if the number of failures where high enough, the "casinos" would know that based on their data and exclude our cars (or failures attributed to certain parts).
Otherwise, they would certainly lose money.
But they don't.
Rennlist Member
Joined: Dec 2009
Posts: 3,003
Likes: 836
From: Deep in the Heart of Texas
We only produce engines to our own spec. That said, the engine was proposed to be built at a factory spec and then the customer was to pay the difference afterward and on a separate invoice.
But that was in 2009, I haven't even considered or proposed a warranty based job since then.
But that was in 2009, I haven't even considered or proposed a warranty based job since then.
