ICE extended warranty revision

[pmg]

In five months since purchase our Macan has needed...

New battery - £600
New lighting ECU - £1,800
New rear window - £1,200
New rear USB socket - £190
New rear washer pressure relief valve - £1,400
Repair to driver's door mechanism - £340

All covered under warranty. All with home collection/delivery and Macan loan car full of fuel.

I think we'll be renewing come June 2026, hence being rather risk averse when it comes to Macans.

You’ve been unusually unlucky, so I can appreciate your risk averse attitude.

On average, claims are less than premiums paid for warranties, otherwise they’d lose money for the insurance companies, so would not be offered.

Your unusually unlucky first five months will be outweighed by numerous warranty purchasers who have not claimed.

Warranties are, in a way, like a casino or a bookies - odds are stacked in their favour.

Agreed but the size distribution of claims at the tail is also relevant, eg most of us have house contents and buildings insurance, the typical claim is small but then there are some quite large ones in the tail like total loss due to fire.

The car warranty comparison is less extreme but would be the above list cf a total engine or gear box failure being the large tail items.

I take the point about using independents for service but in the central South Coast we have an OPC discounting to PCGB members to bring business back form the independents.

It is the possible cost of the tail that creates the economic case for insurance and the justification for the insurance companies slice of profit

[crockers]

I doubt EVs will be a dead duck in 10 years time. Battery development will be massive going forward. I reckon in 10 years time the range will be comparable to an ICE car. Charging time will be massively reduced. Charging network much more acceptable but no soul.

[Jon A]

I doubt EVs will be a dead duck in 10 years time. Battery development will be massive going forward. I reckon in 10 years time the range will be comparable to an ICE car. Charging time will be massively reduced. Charging network much more acceptable but no soul.

Agree
90% of the population don’t require “soul” though, just transport…

[Wing Commander]

In five months since purchase our Macan has needed...

New battery - £600
New lighting ECU - £1,800
New rear window - £1,200
New rear USB socket - £190
New rear washer pressure relief valve - £1,400
Repair to driver's door mechanism - £340

All covered under warranty. All with home collection/delivery and Macan loan car full of fuel.

I think we'll be renewing come June 2026, hence being rather risk averse when it comes to Macans.

You’ve been unusually unlucky, so I can appreciate your risk averse attitude.

On average, claims are less than premiums paid for warranties, otherwise they’d lose money for the insurance companies, so would not be offered.

Your unusually unlucky first five months will be outweighed by numerous warranty purchasers who have not claimed.

Warranties are, in a way, like a casino or a bookies - odds are stacked in their favour.

Agreed but the size distribution of claims at the tail is also relevant, eg most of us have house contents and buildings insurance, the typical claim is small but then there are some quite large ones in the tail like total loss due to fire.

The car warranty comparison is less extreme but would be the above list cf a total engine or gear box failure being the large tail items.

I take the point about using independents for service but in the central South Coast we have an OPC discounting to PCGB members to bring business back form the independents.

It is the possible cost of the tail that creates the economic case for insurance and the justification for the insurance companies slice of profit

Are you/were you in the insurance business, pmg?

[Wing Commander]

I doubt EVs will be a dead duck in 10 years time. Battery development will be massive going forward. I reckon in 10 years time the range will be comparable to an ICE car. Charging time will be massively reduced. Charging network much more acceptable but no soul.

I look forward to that, crockers!

So that maybe when I struggle to get in/out of my 911, I could realistically look at a Porsche EV, or Defender EV...

I don’t totally agree about the ‘no soul’ point. Have you seen Henry Catchpole’s video of 911 GTS driven back to back with a Taycan GTS? I think the sportier marques will still bring out some tempting model with character.

[HertsMacan]

I bought the extension then did not renew.

So after 4 more years without warranty I now have £3,000 in my Bank which would not have been there if I had taken out warranty extensions.

In another four years as long as I do not have to dip into said £3,000 there will then be £6,000 in my Bank rather than in Porsche’s coffers.

Can do a lot of repairs with £6,000.

+1 Self insure is the way forward IMO and your not forced into rip off OPC servicing rates. Saved thousands over the years.

[Wing Commander]

I bought the extension then did not renew.

So after 4 more years without warranty I now have £3,000 in my Bank which would not have been there if I had taken out warranty extensions.

In another four years as long as I do not have to dip into said £3,000 there will then be £6,000 in my Bank rather than in Porsche’s coffers.

Can do a lot of repairs with £6,000.

+1 Self insure is the way forward IMO and your not forced into rip off OPC servicing rates. Saved thousands over the years.

Agree that the majority will save money by self-insuring, as I do. Obviously we are taking a small & calculated risk that something major doesn’t happen, that would be covered by a warranty, if we had one. As said though, unless a catastrophic failure, even a major component failing would still probably cost no more to put right than what we’ve saved by not buying a warranty.

[pmg]

You’ve been unusually unlucky, so I can appreciate your risk averse attitude.

On average, claims are less than premiums paid for warranties, otherwise they’d lose money for the insurance companies, so would not be offered.

Your unusually unlucky first five months will be outweighed by numerous warranty purchasers who have not claimed.

Warranties are, in a way, like a casino or a bookies - odds are stacked in their favour.

Agreed but the size distribution of claims at the tail is also relevant, eg most of us have house contents and buildings insurance, the typical claim is small but then there are some quite large ones in the tail like total loss due to fire.

The car warranty comparison is less extreme but would be the above list cf a total engine or gear box failure being the large tail items.

I take the point about using independents for service but in the central South Coast we have an OPC discounting to PCGB members to bring business back form the independents.

It is the possible cost of the tail that creates the economic case for insurance and the justification for the insurance companies slice of profit

Are you/were you in the insurance business, pmg?

Fundamentally a Pensions Actuary (now retired) so had to do the actuarial General and Life assurance exams but never worked in non Life insurance but have valued Life Insurance Companies and set Life premium rates.

I don't buy some insurances like tyre and gap, the risks for which I prefer to self insure

[DJMCUK]

I don't have an extended warranty on my 981 as it's simpler and more analogue, plus it can't have one applied anyhow due to aftermarket fitments.

The Macan is more complex, plus it's my wife's and she always goes for warranty. The 125k/15yrs is the main reason we went Porsche.
Sold her BMW ay 102k miles from new as it could no longer have an extended warranty.

So this thread is more to do with my wife's 100% wish for total peace of mind than my 50/50 concern.

I worked in insurance for 35yrs, owning my own mortgage, life, and general business. Now retired (early).

[Neil1911]

I don't have an extended warranty on my 981 as it's simpler and more analogue, plus it can't have one applied anyhow due to aftermarket fitments.

The Macan is more complex, plus it's my wife's and she always goes for warranty. The 125k/15yrs is the main reason we went Porsche.
Sold her BMW ay 102k miles from new as it could no longer have an extended warranty.

So this thread is more to do with my wife's 100% wish for total peace of mind than my 50/50 concern.

I worked in insurance for 35yrs, owning my own mortgage, life, and general business. Now retired (early).

In this house I am my wife's 100% peace of mind, she concerns herself not with anything classed more technical than a pair of secateurs!