Toyota Prius extended warranty in California

My suggestion is to bank the money and skip the extended warranty. You'll come out ahead.

 

If that warranty is such a good deal, then why did you buy the car? Invest that $1490 and by the time that warranty expires you'll have a decent portfolio.

 

The cost of the extended warranty covers:
1. The expected costs of labor and parts for the expected repairs over the life of the warranty.
2. The cost of administering the claims (working with the mechanic, paperwork, etc).
3. The costs of selling the warranty.
4. The cost of administering the selling of the warranty.
5. The commission to the sellers (both salesperson, managers and company/dealer).
6. The profit to the warranty company.

By not buying the warranty, you save the costs associated with items 2 thru 6 above. You spare your mechanic the hassle of dealing with the insurance company. And you save yourself any anguish over what is and isn't covered. Nothing is.

By not buying an extended warranty, you accept the risk associated with item 1 above and its associated costs. I've heard repeatedly that the cost of repairs paid out by these warranty companies is, on average, around 20 to 30% of the total cost of the warranty (see Consumer Reports annual auto issue). And that seems reasonable given the other costs. But you save the costs associated with items 2 through 6 which are more than twice as costly as the expected costs of repairs.

Extended warranties are like a casino:

• some who play will win
• a very very few will win very big
• most by far will lose
• the casino will make a lot of money.

Only the casino odds are so much better...there the percent returned to the better is generally more than 80% as opposed to the warranty where it is around 20-30%. Like at a casino, you hear the stories of the people who win big and that persuades you to play. You mostly don't hear about all the many, many more people who lose.

If you do buy, ask to read the contract, not the sales literature. And note how normal wear items are handled. Things like brakes, alignments, fluid changes, filters, etc. Those are most of your expected maintenance costs. Also look to see if the warranty can be transferred to a future buyer should your circumstances change and you decide to sell your car.

Everyone is entitled to their own risk tolerance. Mine happens to be high. I've turned down an extended warranty when buying a 6 year old car where the engine replacement would run around $20k, lots lots more than a Prius engine.

And, if the warranty is a national warranty, why wouldn't you buy from the low cost seller? What benefit would you get from buying in state? (I've also gone 2 states away to find a dealer to sell me a car at the lowest price and had no service issues.)

Good luck in your decision.

 

Don't buy an extended warranty.

Your auto should be trouble-free, conservatively, for at least 48-60 months. Likely....far longer.

Within that time, you enjoy the original manufacturer's warranty, your state's emissions warranty, and federal emissions regulations that cover a huge amount of engine and transmission coverage (....particularly with electric or hybrid cars). Heck, the batteries are covered for many, many years beyond the the typically 36 month manufacturer's car warranty.

+++Please read the entire warranty coverage booklet. You are actually covered under warranty for years after the Manuf warranty expires. Good reading for consumers---learn what you're entitled to.+++

Hybrid vehicles (at least in CA) enjoy a pool of warranty "connection" to virtually all of the engine, drive train, and battery components found within the car. So, if a particular component fails, it directly effects the emissions component of another part....covered under warranty (by Manuf, State, or Fed warranty mandates).

Small stuff:....like a blown-speaker/ an annoying rattle/ a scuffed door handle, etc; ---out-of-Manuf warranty-- might cost you to correct. So, put the 2200.00, or so, for the extended warranty in a good investment account. It'll earn interest for at least three years before you have to even toss out a couple hundred bucks to fix a very small issue.

And, I also am a CA resident.

 

extended warranty you can buy from toyota dealer about $1200 up 100.000 miles or 7 years . If the dealer sell you more than that they try rape your pocket . If you know auto tech , Don't buy extended warranty . As long you drive normal and Change oil with Fully synthetic . Everything ok. Cause I'm driving regural Prius every day In Freeway my speed 65-90 . The car now 140.000 miles never have problem.

 

you find 65-90 to be normal?