Lexus: 2001 Lexus LS 430

One major repair on the Ultra could easily exceed 2500.00. If what they are
offering is a true Lexus Certified warranty extension it is IMHO worth the
money. However I do not belive it will cover the cost of replacing tires
just installing the spare as part of the roadside assistance program and it
will not pay to replace a damaged chrome wheel. Your auto insurance would
cover replacement.

Myles

RWoody wrote: 

do you only drive 10K / year?
"RWoody" <com> wrote in message
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"RWoody" <com> wrote in message
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No way! People forget that the purpose of insuring anything is to cover you
in the event of a MAJOR problem that could ruin your life. Such as needing a
heart transplant, your house burning down, or you accidentally killing
people in a vehicle accident. Not for insignificant things that rarely
happen like a flat tire! That $1,200 is almost pure profit for them. They
already gouged you for the overpriced "Certified" crapola. I drive a 1992
Lexus ES300 with over 247,500 miles on it. No problems. Don't let their
slick, commisioned fear mongers (Buy this 'insurance' or your car might
explode) get any more of your money!

Maybe yes and maybe no. Generally I agree that you insure against only
potential big disasters. But the truth is that the odds of a 4 year old LS
having a $1200+ repair are pretty great. Much greater than the Camry based
ES car that you cite. If I could buy insurance to replace my $700 computer
for $100, I probably would even though I can easily afford $700 for a new
one. It's all about risk and reward. Risking $100 on the VERY likelihood of
a computer failure is a good risk. Risking $1200 on the odds of $3000 worth
of claims to an LS also seems to be a reasonable risk/reward ratio. If it
cost $2500, I'd balk. But at $1200, seems reasonable.


"Pud Knocker" <org> wrote in message
news:evPmd.1586$news.pas.earthlink.net... 

Buy it.

> Generally I agree that you insure against only potential big disasters. 

There are three reasons to buy insurance: 1) to guard against an unlikely
catastrophic event that you can't pay for without hardship; 2) because the
odds favor that you'll likely make claims that exceed the premiums you'll
pay; and 3) you simply sleep better at night knowing you're covered. You're
arguing for the 2nd.

The problem with this argument is that if it were true, the insurers would
loose money selling the insurance, since the odds favor them paying out more
than they will get back in premiums. Companies generally don't sell things
at a loss. So one almost has to assume that the odds favor the insurance
company, not you.

There are exceptions of course, and companies may sell specific insurance at
a loss and make up for it elsewhere. Or insurance will sometimes be
subsidized. But I doubt this is the case here.

I think when it comes to extended warranties on consumer items, they're
almost universally a bad deal, but don't discount (3). Good sleep is
important.

- Mark

Typically I agree with Mark. However insurance works on averages over large
populations and you are a population of 1. A single service occurence in
the covered period would roughly cover your premium costs.

I've seen many posts in this newsgroup warning newbies the average service
cost/year on a Lexus is about $1,000, so 2 years coverage for $1,200 looks
pretty good to me as long as the 'fine print' on covered items doesn't
exclude too much. Your initial post looked like the coverage was good. I'd
buy it.

XPlant


"markjen" <net> wrote in message
news:z84nd.628224$.. 

The only way the extra 2 year insurance is a worthy investment is if you
will only drive 10K / year.

the way this additional 2 year coverage works is:
3 years / 100K - you get with the certified vehicle

or the added option
5 years / 100K - which will cost you 1200 extra

the mileage remains the same, so if you can stretch the remaining 50K on
your vehicle over the next 5 years, then it is worth it, otherwise -
probably not.


Just an opinion

"Xplant" <net> wrote in message
news:hAand.425182$D%.. 
large 
I'd 
repair 
cite. 
unlikely 
the 
you'll 
would 
sell 
insurance