Ferrari POWER warranty up to 10 years

Cost. Depending on where you are located, the cost can be as much as $5K per year.

 

All of these companies are into it to make $.

The cost of the warranty is computed by an actuary-risk analysis process. They assess say 100 cars like yours and total up the covered repair costs for all of them for a year. They divide by 100 and they have the expected repair cost per car for a year. Then they add their expense and admin fees, and a profit. This is what you pay per year.

Then they will try to screw you every way possible to not pay when something goes wrong.

So, if you drive your car a lot, drive it hard, abuse it, and don't do due dilligence on maintenance, buying the warranty may be a good deal because your car is likely to have a higher than average repair cost for the year in question.

On the other hand, if you don't drive it a lot, drive it nicely, and take good care of it, buying the warranty means you are subsidizing someone else.

This is how all insurance works.

 

great summary!

 

Very well summarized John! In a nutshell, if you're a bit hands-on and consider your car is really YOUR OWN car, don't pay and self-insure. Imagine the total amount you can save year after year...that's enough money to cover a serious failure.

If you rather leasing a company car and don't consider it is your personal car and want to sleep peacefully, just pay for it.

 

Yes I felt like that too with the extended warranty i took out last year for 12 months.

Thery're not an everyday drive so I guess its money for jam.
Rob.

 

Takeaway what you wish. Bottom line: Ferrari is looking to make a profit from this warranty program. Buying a Ferrari warranty is NOT a "no brainer". If you want peace of mind, you will have to pay handsomely for the priveledge.

 

Fixed it for you .
And yes, you'd be much better off saving that money yourself and pay for repairs as needed.

 

Ferrari stood by my Power Warranty. My HVAC system's little ECU developed a glitch and was replaced under the PW. That repair probably would have cost me $1K or more.

Ferrari's extended warranties may not be cheap, but they do make good on them, IME.

 

It is always better to self insure something that you can afford to insure yourself. As the previous posters have said, insurance companies are in the business of making money, not saving you money. Insurance makes the most sense to protect against catastrophic loss, such as massive health bills, fire burning your house down, large liability claims against you -- these bad events can wipe a person out....

 

Go look at the post 'Engine Failure' then tell me a warranty doesn't make sense I purchased the power warranty on mine and it had paid for itself with days of taking it out when I needed manifolds replaced, unlike the US the UK doesn't have the 8 year warranty of manifolds. I'll be renewing again this year.

John.