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      05-15-2018, 11:23 AM   #26
alex2364
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Drives: 2020 M4 ZCP / 2023 X3 M40i
Join Date: May 2005
Location: Northern VA

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Quote:
Originally Posted by RobbyMack View Post
The market for those aftermarket extended warrantees you are comparing is totally different. The risk pool is different as is the take rate. That's why they are expense. That being said they are also underwriting at an enormous profit because the actual risk is very low for a catastrophic failure. Basically once you drive a modern car off the lot and it doesn't break on your way home the risk for any type of serious malfunction for the next 100k miles or 7-10 years is essentially near zero. The manufactured risk based in anecdotal evidence in this forum and the internet as a whole creates the market for those aftermarket warrantees. That all being said anyone driving a car like a M3 or other luxury vehicle is better off with a insurance company not geico because their offered limits of insurance and available umbrella are not enough if you have decent income and assets to protect. That liability risk is way more important than some mechanical breakdown insurance.
$1 million liability coverage isn't enough for car insurance? Sorry I'm not a multimillionaire.
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