Hi, my hybrid X3e factory warranty will expire in the next couple of months. I called the local dealer for quote on the extended warranty. The finance manager is definitely pushing for 3rd party Zurich warranty vs. the BMW version.

I was quoted 60 months (5 yr) 65k miles $100 deductible for $4800 (located in California). I learned from the threats you nice people posted this price is negotiable.

-is this a good warranty, i did not extend my maintenance plan

-how much is a decent price to pay for it, i heard about 1k per year

-should I shop around some more and try to stick with the BMW VSC only (7 yr 100k)?

Thank you very much for your input!

I purchased the Zurich extended warranty from the BMW dealer in 2021 when I picked up my new X3MC. I paid $3000 for an additional 3 years. I usually don't fall for it but my wife said this is my last car. My service dealer said its a decent warranty but we shall see in another year when my factory warranty expires.

They’re pushing because they get paid more. When given the choice, I’d personally always go with BMW one (and I was given the choice and this is the choice I made). Less hassle with claims in most cases, and there’s 0 deductible option. But definitely weigh your options and read the terms.

chhappy7 wrote

They’re pushing because they get paid more. When given the choice, I’d personally always go with BMW one (and I was given the choice and this is the choice I made). Less hassle with claims in most cases, and there’s 0 deductible option. But definitely weigh your options and read the terms.

With the BMW version, do I only go to the dealer or can I use it at independent shops?

NikkiBloom wrote

With the BMW version, do I only go to the dealer or can I use it at independent shops?

BMW version, it’s dealership only. If you have an indie you prefer to go to, then probably wanna go with 3rd party but make sure to check the terms and stuff. These things are underwritten to pay out as little as possible.

Marmugmotleocay wrote

I purchased the Zurich extended warranty from the BMW dealer in 2021 when I picked up my new X3MC. I paid $3000 for an additional 3 years. I usually don't fall for it but my wife said this is my last car. My service dealer said its a decent warranty but we shall see in another year when my factory warranty expires.

Thanks for sharing, this reminds me to ask my tech for feedback.

Just be sure that your extended warranty BEGINS AFTER the factory warranty is over and not concurrent to it.

I never buy extended warranties. But the last time a dealer tried to sell me one it was a called a "5 yr Warranty".....BUT it began at the time of signing, so in essence it was only a 2 yr warranty because it began at the same time the 3 year factory one began.......(that was many yrs ago, I'm not sure if they still pull that crap or not).

One important point to mention......a car owner has UNTIL the expiration date of the original factory warranty to decide if they want to buy an extension. Oh sure, the dealer will not tell you at the time of sale. Additionally, my advice is to "shop around" for pricing of a BMW Extended Warranty since it's a big profit not necessarily the dealer you bought from.

Lastly, if you feel you must buy one make sure its not some fly by night, TV advertised or non-BMW extended warranty.

If you're wanting to ensure the HV battery is protected just know the extended BMW warranty does not cover it on your 30e. That falls under the federal emissions warranty, and standard US warranty for that is 8yrs/80k miles, but you being in California it is either 10yrs/100k or 10yrs/150k miles. Pretty sure it's the 10yrs/150k.

I had a warranty administrated (if that’s a word) by Zurich for a previous car. Never had any problems with them paying out.

Take your premium and put it in a high yield savings account somewhere like Wealthfront. Since warranties are designed to make the seller (not you) profit, you can just self insure and keep the leftover after any “covered” repairs.

If you’re a member of a credit union, check with them. I had an MBP policy through Route 66 on my Acura. The price was pretty reasonable and coverage was good.

www.caredge.com

Check their service contracts out.

The biggest expense would likely be electronics and many of the extended warranties don't cover that. Those that do charge the higher premiums. Getting bumper to bumper coverage would be quite expensive. If you have the means to cover repairs, it is more cost effective to self-insure. The premiums are designed to make a profit for the insurers. As noted, if you set aside the premium and put it into an interest bearing account, withdrawing if you need a repair, you will almost cetainly come out ahead after the term of the policy. If you have a high mileage car and can get good coverage insurance might make more sense, but for normal and especially low mileage cars, self insuring works out less expensive.

I'm a BMW Center finance manager (as my encore career), and we offer Zurich and Safe-Guard (the BMW-branded) service contracts. It's car repair insurance, simply put. Whether it's worthwhile depends on your circumstances and risk tolerance -- like any other insurance product.

Our service department has had good claims experience with Zurich, so they're whom I went with when choosing to cover my own BMWs. One difference between Zurich and BMW is range of contract terms, such that a consumer can tailor coverage more closely to how long and how far they plan to drive the insured vehicle.

Does the service contract provider and dealership make money selling them? Sure! What insurance carrier or agency doesn't intend to make a profit? The industry bases its business model on pooled risk plus some margin of profit for managing that risk. As an individual consumer you 'profit' by avoiding catastrophic financial loss (like a house fire, long-term nursing care, or engine failure).

I think a lot of people want the ability to choose whom works on their car. That excludes BMW Service Contracts. Second, read the EXCLLUSIONS part of the contract. There are several gotchas in there. Like the steering control module. It is said to be in a spot where "damage may occur". Hence, we don't pay for that. File a claim with your car insurance. Next, read up on the modules in car. Are they all covered? Third, hours of operation. Safe-Guard is famous for closing at 6pm. Broken down before that, looks like you are SOL. Call back at 8am.

glennbk wrote

www.caredge.com

Check their service contracts out.

I second this, and Caredge has good customer service. I like the two hosts/company founders, their information, website, and YouTube videos. It's an informative and helpful service.

Anyway, I paid $4k for a 5/85k for my wife's 2019 X5 (after it came out of warranty). Dealer wanted $6000+ for Zurich and didn't offer the BMW branded extended warranty. As I look back, I'm not sure if it was necessary but it is what it is...

Good luck!

Opinion from an Independent European Automobile Repair Professional:

It is rare that these warranties pay for themselves. These warranties get your money up front, whether you roll the value into your payments, or pay up front. The point of this is to indicate that unlike your insurance company, these warranty companies *already have your money*. Now, every single person you talk to, their focus, their goal, is for their company to spend the LEAST AMOUNT of money on you as possible. This is achieved through various means; fine print, confusing language, excluded components, various restrictions, etc. I don't mean to imply that what they're doing is underhanded, if you do your due diligence, you won't be surprised by their actions.

That said, when they sell you a warranty, they're making a bet. A gamble that says that they're going to end up paying out to you or your repair facilities, less than you paid them in the first place. That's how they make money and stay in business.

Now, I've been fixing European cars, largely BMWs, for more than 20 years. I can count on one hand the amount of clients that I've had where the warranty ended up paying out more than the cost of it. Usually it's on cars that are pretty problematic (V12 BMWs, Audis, Land Rovers, Early 272/273 MBs).

I don't mean to say that you're wasting your money, but I can say that if the G01 ends up being above average in reliability, you're buying peace of mind more than you're buying any cost savings.

(oh, also, lots of these warranties won't pay for quality parts and you might end up having to pay for the price difference between what they authorize and what the parts should cost, when you get repairs done)