Preowned Car Insurances Review Needed

corepda on 17/05/2020 - 22:51
Last edited 18/05/2020 - 08:57 by 1 other user

Hi Guys,
In the market for a luxury car and found some really good deals for pre-owned cars but unsure of their future as they dont always come with warranty. Alternatively the second hand dealers advising me to buy the after market insurances like integrity, check the image below. Looking for reviews on such insurances and experience and what are the possible pitfalls for such insurances. They cost a lot so wondering if they are really good investment? I am based in Melbourne, Vic. Ta

Appreciate your views.

Price list

https://dl3.pushbulletusercontent.com/QQIOncZipxLtP2lAKnLFRS…

Automotive

Comments

  • Hybroid on 17/05/2020 - 22:55
    +2

    That's not insurance, it's an extended warranty by a third party. Read the T&Cs for what's included/excluded very very very very very carefully.

    • Euphemistic on 18/05/2020 - 07:48
      +1

      Yes it’s an ‘extended warranty’, but It is kind of an insurance policy though. You pay a premium to cover you against potential incidents - in this case $ worth of repairs.

    • corepda on 18/05/2020 - 09:27

      Yes, I am going to read through that for sure. :) Thanks for the reminder.

      • brendanm on 18/05/2020 - 10:19
        +1

        Surely as a "risk management professional", you would have gone through the terms and conditions before asking the "risk management amateurs" here at ozbargain.

        • corepda on 18/05/2020 - 10:22

          I agree but experience of others is irreplaceable for such things. I have heard mixed reviews offline and red some bullet points but definitely will read more along with any pointers from others. :)

  • Muzeeb on 17/05/2020 - 22:59

    Especially read claim limits and maximums.

  • Cheeper on 17/05/2020 - 23:55
    +2

    As already stated… that is NOT insurance.
    If you are concerned about a used car you intend to buy PAY for a inspection by an independent mechanic, not one the car yard recommends. Mobile mechanics are usually pretty good.
    Do not waste your money on an extended warranty. They come with many conditions and one common one is that you must have it serviced by the selling dealer at very inflated prices.
    Re actual car insurance… arrange your own. Do not purchase through the dealer. Make sure you insure it before you drive it off the lot.

  • aoeueoa on 18/05/2020 - 05:53

    Mate what car are you looking to buy, how much etc?

    If you're wanting second hand 3-5yo European luxury, it won't be fun owning it.

    • corepda on 18/05/2020 - 08:33

      Yes 3-5yrs old German. I have had people owning it and don't see complaining much.

  • Euphemistic on 18/05/2020 - 07:49
    -1

    “If you have to ask, you can’t afford it”

  • corepda on 18/05/2020 - 08:39
    -3

    Yeah i agree it is more of warranty then insurance but some mechanics use the word interchangeably. Anyways the idea is to get some protection if these cars bust and cost me Life to repair them.
    People saying if you have to ask you can't afford. That's not true. Have you heard of the term risk management? That's precisely i am doing. I own million dollar assets but that doesn't mean i won't look in to how things can go wrong and how to keep the cost of those issues low.
    Thanks

    • pegaxs on 18/05/2020 - 09:12
      +1

      it is more of warranty then insurance

      No, it's not a warranty, it's insurance. You are buying insurance cover to hedge bet against something going wrong with your Euro Shitbox. It is supplied by insurance companies, not the manufacturer.

      People saying if you have to ask you can't afford

      This is absolutely true. The mere fact that you are tying to compare breakdown insurance to cover items breaking suggests that you cant afford the vehicle if it does break down.

      Have you heard of the term risk management? That's precisely i am doing.

      I have, and what you are suggesting is not "risk management". Risk management is weighing up if you should buy the item or not based on the risk of something breaking. NOT buying it and then working out what's the best way to cover the cost of the repairs. Risk management is about avoiding the problems in the first place.

      Buying insurance does not ease the risks of buying Euro shitboxes, they will still break down regardless of your insurance or not.

      I own million dollar assets

      No you don't. (What you might have is millions of dollars in liabilities.) Else you would not be here asking about insurance betting on a used BMW.

      • corepda on 18/05/2020 - 09:18
        -2

        Risk management is about avoiding the problems in the first place.
        Thats called risk avoidance not risk management. You are talking to a risk management professional. All I asked is genuine review of how people have dealt with some of these insurance companies and if there has been any reg flags. No, they are not asking for repairs to be done at their centre and can be done at any licensed mechanic. So that issue tick the box.

        People please stop lecturing other people without knowing their background. This is an online forum for specific purpose. Let's stick to the topic.
        Thanks

        • pegaxs on 18/05/2020 - 09:37
          +2

          The first step in risk management is to try and avoid or eliminate the risk. Risk is much easier to deal with if avoided. Buying a Euro trashwagon is an avoidable risk, so the first step would be to consider not buying it at all and reducing the risk of it breaking down to ZERO.

          If you are a risk management "professional", then you're not a very good one. I have to do risk assessments every time I go on site and start a job. So, I too also know about "risk management". (Albeit I don't sit in an office discussing the theory of "risk". My risk assessment only revolves around whether or not I get to go home in one piece and alive at the end of the day.)

          If you also used the search function provided by this website, you would have seen a thread talking about this very similar topic about a week or so ago.

          People please stop lecturing other people without knowing their background.

          Then stop bringing up irrelevant, humble brag shit that has no context to what you are asking.

          You are trying to be smug by talking about how much money you have, the expensive car you want to buy and your chosen profession, but you cant even read the terms and condition on the PDS from one of these breakdown insurance companies??

        • mskeggs on 18/05/2020 - 10:01
          +3

          This type of insurance/warranty is not an effective mitigation or control.
          The policies include many clauses that make the insurance void and the claim limits are restrictive.
          They are sold to mugs who are easily gulled by a salesman that their risk is mitigated by a worthless policy.

          I had this “thrown in” on a secondhand car once. Both times I tried to make a claim it was rejected for fine print reasons.

          • corepda on 18/05/2020 - 10:07
            -1

            @mskeggs: Thanks mate for sharing that experience.

  • gumbo45c on 18/05/2020 - 09:01
    +5

    These warranties arn't worth it, better to try to examine the service history and usage of the car and potentially spend that extra 1 or 2 thousand for the policy on a better example of the car, maybe take your time and buy private and avoid dealers altogether. I've been burnt more than once on these things, avoid used car warranties. Better to get a car that has had the manufacturer warranty extended at the time of sale.

    • corepda on 18/05/2020 - 09:22
      -2

      Thanks for your valuable suggestion. Cheers

  • vinni9284 on 18/05/2020 - 12:44
    +1

    In addition to the comments above (extended warranty is junk), I would focus on the Dealer statutory warranty up to 3 months if the car is less than 10 years old and is under 160K kms.

    • HeWhoKnows on 18/05/2020 - 14:57

      Yes people underestimate the value of Dealer Statutory warranty for cars under 10 years old AND under 160,000km
      The dealer MUST offer it and its just like a new car warranty.
      Hence any car sold with this warranty will definitely be a good used car, otherwise dealer will be out of pocket!

      • vinni9284 on 19/05/2020 - 18:31

        By law whether the car is good or not, a dealer has to provide this for the aforementioned conditions.
        It's best to have a warranty inspection nearly at the end of 3 months for any issues.

      • Euphemistic on 20/05/2020 - 15:36

        Hence any car sold with this warranty will definitely be a good used car, otherwise dealer will be out of pocket!

        Not necessarily. They might patch something up and poor it lasts more than the 3 months. It’s also quite likely they have no idea of the history of the car (blight at auction)

        It’s better than no warranty, but it’s not a guarantee of a good car.

  • HeWhoKnows on 18/05/2020 - 14:56

    Forget them!
    You think they just give money away to fix your car????
    Not a chance!
    High excess, difficult to justify a claim then find a mechanic that will do the work for them.

    Keep the money in your pocket and save it for "if and when" the work is required.
    If you buy well and look after the car it won't need any such work hence the insurance is not warranted.

    PS Thewdealer makes a nice commission out of selling the extended warranty/insurnace so of course he is going to recommend it

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