Extended warranty- help which one?

[miliescu]

I am close to 60K miles on my R1T and I am looking for any extended warranty plans. What would you recommend, and can someone help me contact Rivian to get this going.

Thank you

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[MidnightRivian]

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XCare Extended Warranty on Rivian: My Full Claim Experience (And Outcome)

What are your thoughts on a 10 yr or 11 yr / 100,000 miles - 150,000 miles bumper to bumper extended warranty by Fidelity Warranty Services

 

[Dweezil]

I’d be interested in knowing how many have obtained or will be obtaining an extended warranty. I go back/forth on the ROI. I understand all it takes is one issue that requires thousands of dollars to address…But I just wonder (statistically) how many people who purchase extended warranties come out ahead vs those who chose to chance it and pay out of pocket for repairs. I’m sure I could go do some googling on the subject, but was just curious what everyone’s thoughts are on the topic as it relates to Rivian vehicles specifically.

 

[DeanB1452]

I'm all for it. Got XCare, 6yr/100K/$0 deductible for just under $8K last year. Currently have 75K miles and with 3 claims totaling over $14K in less than a year, well worth the ROI.

 

[BigSkies]

I’d be interested in knowing how many have obtained or will be obtaining an extended warranty. I go back/forth on the ROI. I understand all it takes is one issue that requires thousands of dollars to address…But I just wonder (statistically) how many people who purchase extended warranties come out ahead vs those who chose to chance it and pay out of pocket for repairs. I’m sure I could go do some googling on the subject, but was just curious what everyone’s thoughts are on the topic as it relates to Rivian vehicles specifically.

A good rule of life is to assume insurance actuaries understand the financial risks you're running better than you do. If they're putting those prices in front of you, the insurance company is confident that you will statistically incur claims lower than that dollar figure, adjusted for their margin and operating costs.

Think of the price of insurance similar to that of gambling, albeit with insurance being a much more useful product. The house always wins. Except when it comes to climate risk apparently.

It doesn't mean insurance is a bad idea. It's frequently an excellent idea, depending on what types of risks you plan to run. Just know that statistically your will be a net-payer for insurance products.

It's still valuable, because lots of people are outliers.

I personally find insurance quotes to be valuable for building my own mental model of what costs I can expect. In this example, I see quotes above of ~$6.5k for coverage through 2030. That tells me I'm statistically likely to spend maybe $5k-$6k in warranty type repairs over that time period. Maybe it will be more or less, but it's a decent starting point for assumptions.

 

[Zoidz]

A good rule of life is to assume insurance actuaries understand the financial risks you're running better than you do. If they're putting those prices in front of you, the insurance company is confident that you will statistically incur claims lower than that dollar figure, adjusted for their margin and operating costs.

Think of the price of insurance similar to that of gambling, albeit with insurance being a much more useful product. The house always wins. Except when it comes to climate risk apparently.

It doesn't mean insurance is a bad idea. It's frequently an excellent idea, depending on what types of risks you plan to run. Just know that statistically your will be a net-payer for insurance products.

It's still valuable, because lots of people are outliers.

I personally find insurance quotes to be valuable for building my own mental model of what costs I can expect. In this example, I see quotes above of ~$6.5k for coverage through 2030. That tells me I'm statistically likely to spend maybe $5k-$6k in warranty type repairs over that time period. Maybe it will be more or less, but it's a decent starting point for assumptions.

Agree. And I think the concern is that some of those outliers may be low frequency but damn expensive.

 

[smashweights]

A good rule of life is to assume insurance actuaries understand the financial risks you're running better than you do. If they're putting those prices in front of you, the insurance company is confident that you will statistically incur claims lower than that dollar figure, adjusted for their margin and operating costs.

Think of the price of insurance similar to that of gambling, albeit with insurance being a much more useful product. The house always wins. Except when it comes to climate risk apparently.

It doesn't mean insurance is a bad idea. It's frequently an excellent idea, depending on what types of risks you plan to run. Just know that statistically your will be a net-payer for insurance products.

It's still valuable, because lots of people are outliers.

I personally find insurance quotes to be valuable for building my own mental model of what costs I can expect. In this example, I see quotes above of ~$6.5k for coverage through 2030. That tells me I'm statistically likely to spend maybe $5k-$6k in warranty type repairs over that time period. Maybe it will be more or less, but it's a decent starting point for assumptions.

Yep, all extended warranties operate like this. If they pay out more than they take in they can't exist

 

[SDINSD]

I’d be interested in knowing how many have obtained or will be obtaining an extended warranty. I go back/forth on the ROI. I understand all it takes is one issue that requires thousands of dollars to address…But I just wonder (statistically) how many people who purchase extended warranties come out ahead vs those who chose to chance it and pay out of pocket for repairs. I’m sure I could go do some googling on the subject, but was just curious what everyone’s thoughts are on the topic as it relates to Rivian vehicles specifically.

Do you buy insurance at blackjack table? It is, on average, a money-losing proposition like others have pointed out (i.e., Xcare being a for-profit enterprise). Insurance just helps with bankroll management by reducing variability.

The only caveat with Rivian vehicles is there probably has not been a large amount of data points of out-of-warranty repairs covered by Xcare. My guess is once more data becomes available, the premium will be adjusted accordingly over time to preserve their expected value of profit.

 

[Mark_AZR1T]

I ended up choosing XCare and shared a full review of my experience here. If you’re keeping the truck long-term, especially outside the factory warranty, I can’t imagine not getting your money’s worth considering how pricey EV repairs are.

X-Care Review Post

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