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My 2016 Outback's warranty quotes went from $2,100 to $890 in 8 months, same coverage
I got quotes for an extended warranty on my 2016 Outback back in January and the cheapest one was $2,100 for 4 years, then I checked again last week and the same plan was $890. The only thing that changed was my odometer crossed 100,000 miles, and apparently they price these things way lower once the factory coverage is long gone since there's less overlap for them to cover. Does anyone know if that price drop means the coverage is actually worse, or is it just how these companies price things at different mileage points?
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kimg5715d ago
That overlap thing makes total sense and I bet it goes even further than you're saying. Once you're past 100k, they know the factory warranty is gone so they're not paying for anything that would've been covered anyway, which means every claim comes out of their pocket, but here's the part people miss, they also know most of the expensive stuff that was gonna break already broke or got fixed. The risky early miles are behind you. That's why the price tanks so hard, it's not that they're being generous, it's that the odds flipped in their favor and they're still making money at $890. Which honestly should make you ask why it was $2,100 in the first place, because that first quote was probably just a mile-based penalty for being close to the cutoff. Read the actual contract though, because a lower price sometimes means a lower payout cap or they switched you to a powertrain-only plan without saying so. Same coverage on paper doesn't always mean same coverage in the fine print.
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