Help! Between a 997.1 and 997.2
05-01-2017, 11:41 AM
#16
Track Day
Join Date: Aug 2016
Location: San Diego
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Smitten....I respect your input and opinions. However I must disagree on the warranty companies.
There is no way they would base the rates off of a pool of cars. They know enough about different makes to understand the risk/payouts for a Porsche, Mercedes, Jaguar etc are going to be much higher than for a Toyota, Honda etc.
They will base your premiums on facts that will show they will not pay you more than you pay them. If the facts showed otherwise they would raise the rate. They have determined by extensive research that the chance of a IMS failure is low and that is why the rate is 3K and not 20K.
And I am all for buying the best car you can afford. However $12,000 is a large difference for two very similar cars
There is no way they would base the rates off of a pool of cars. They know enough about different makes to understand the risk/payouts for a Porsche, Mercedes, Jaguar etc are going to be much higher than for a Toyota, Honda etc.
They will base your premiums on facts that will show they will not pay you more than you pay them. If the facts showed otherwise they would raise the rate. They have determined by extensive research that the chance of a IMS failure is low and that is why the rate is 3K and not 20K.
And I am all for buying the best car you can afford. However $12,000 is a large difference for two very similar cars
05-01-2017, 02:17 PM
#17
Rocky Mountain High
Rennlist Member
Rennlist Member
The rates are definitely based on a pool of cars. That's the way that insurance works. That being said, cars with a higher risk profile will have higher premium rates than those with a lower risk profile. Aftermarket insurance companies do plenty of research, and they understand the relative risk of each model.
It's no different than health insurance. If you smoke, or if you ride a motorcycle without a helmet, then you represent a higher risk to the insurer. Therefore, you should pay a higher premium than somebody who doesn't live a risky lifestyle.
In my experience, aftermarket warranties are a waste of money. I won't buy another one. Every time that I purchase one, I lose money. Perhaps I gain a bit of "peace of mind", but is that really worth the price of the premium? For me, it hasn't been worth it.
It's no different than health insurance. If you smoke, or if you ride a motorcycle without a helmet, then you represent a higher risk to the insurer. Therefore, you should pay a higher premium than somebody who doesn't live a risky lifestyle.
In my experience, aftermarket warranties are a waste of money. I won't buy another one. Every time that I purchase one, I lose money. Perhaps I gain a bit of "peace of mind", but is that really worth the price of the premium? For me, it hasn't been worth it.
05-01-2017, 02:27 PM
#18
My 997.2 is a CPO, was purchased just about 5 years ago and is my daily driver. It has been a wonderful car--now has 73,000 miles on it Since I switched to Michelin Super Sports I even get good tire mileage now!
05-01-2017, 02:38 PM
#19
Rennlist Member
Smitten....I respect your input and opinions. However I must disagree on the warranty companies.
There is no way they would base the rates off of a pool of cars. They know enough about different makes to understand the risk/payouts for a Porsche, Mercedes, Jaguar etc are going to be much higher than for a Toyota, Honda etc.
They will base your premiums on facts that will show they will not pay you more than you pay them. If the facts showed otherwise they would raise the rate. They have determined by extensive research that the chance of a IMS failure is low and that is why the rate is 3K and not 20K.
And I am all for buying the best car you can afford. However $12,000 is a large difference for two very similar cars
There is no way they would base the rates off of a pool of cars. They know enough about different makes to understand the risk/payouts for a Porsche, Mercedes, Jaguar etc are going to be much higher than for a Toyota, Honda etc.
They will base your premiums on facts that will show they will not pay you more than you pay them. If the facts showed otherwise they would raise the rate. They have determined by extensive research that the chance of a IMS failure is low and that is why the rate is 3K and not 20K.
And I am all for buying the best car you can afford. However $12,000 is a large difference for two very similar cars
Risk is the product of probability and consequence. I agree that the probability of an IMS failure is low. But the consequences are rather high. It's not uncommon for an owner who suffers an IMS failure to sell the car as a roller and leave Porsche ownership behind. Aftermarket warranties are insurance policies designed by actuaries who definitely understand Risk. The company makes money on the pool, but sometimes loses money on individual cars.
As others have said here, I too am not usually a fan of extended warranties. I won't buy one on appliances or electronics or a Japanese car. However, a 997.1 (or 987.1) or a new Mercedes that I planned on keeping are amongst the few cars I would make exceptions for. I won't avoid the car, but I want some additional peace of mind. Conversely, I won't own another BMW, warranty or not, as I've found them to be too unreliable to easily live with.
05-01-2017, 03:23 PM
#20
I put the FVD sports mufflers on my 997.2 4S...do that and you will be woke up. I decided to go back to just the Fabspeed X pipe and stock mufflers.....so the 997.2 can be woke up quite well, if you really want it to.