fiddlerjoe

I'm coming up close to 49,000 miles on my 2006 400h and have to make a decision about whether to put out $2600 for a service contract that will cover just about everything that the Lexus warranty doesn't between 50,000 and 100,000 miles (between 70,000 and 100,000 for the power train).

Nothing has gone wrong with the vehicle yet, except once requiring a computer re-boot to get the vehicle to start, which I was able to do on my own.

I'd appreciate hearing some opinions about the likelihood of major repairs being required on a well-maintained 400h between 50k and 100k miles. Obviously there are a lot of variables here (including luck); my vehicle is operated under mainly freeway driving conditions, and is regularly serviced, as per Lexus recommendations.

I'm leaning toward keeping my $2600 and taking my chances.

riwyle

Many, if not most people, buy these policies for peace of mind. What is this peace of mind worth to you? It all depends on your tolerance for risk. The insurance companies make money on selling and supporting many policies, so odds are you are better off going "self insured". But, what are these odds? Are you willing to accept the cost if these odds turn against you?
I have never looked into these policies, but are there policies that are cheaper with higher deductibles? I personally wouldn't want to pay for insurance to cover a $200 job, but would consider coverage for a $2,000 repair.

jrobe

I look at insurance policies (and an extended warranty is basically an insurance policy) in terms of how much of a loss would I be able to absorb financially without significant hardship. I couldn't afford to replace my home so I make sure I have a very good homeowners policy. I couldn't afford a $50,000 medical bill so I make sure I have a very good medical insurance policy. On the other hand, I could afford a few thousand dollar auto repair bill if I was an unlucky car owner so I would never buy an extended car warranty. I did, however, try to reduce this risk by buying one of the more reliable car brands. At some point you have to self-insure yourself and take some risk or you will spend a fortune on insurance.

herbvdh

IMHO Why waste your money. Keep the $2600

Please check your factory coverage first. The below is from the Lexus website.

Basic Warranty

The Basic Warranty coverage is for 48 months or 50,000 miles, whichever occurs first. Wheel alignment and balancing are covered for 12 months or 20,000 miles, whichever occurs first.


Powertrain Warranty

The Powertrain Warranty is for 72 months or 70,000 miles, whichever occurs first. Except for the situations listed on the Basic Warranty page, this warranty covers repairs needed to fix defects in materials or workmanship of any component listed below:

Engine
Cylinder block and head and all internal parts, timing belt and cover, flywheel, oil pan, water pump, fuel pump, engine mounts, engine control computer, seals and gaskets

Transmission and Transaxle
Case and all internal parts, torque converter, clutch cover, mounts, engine control computer, seals and gaskets

Front-Wheel-Drive System
Driveshaft, axle, hub, bearings, seals and gaskets

Rear-Wheel Drive System
Motor/generator, differential carrier assembly, axle carrier, axle case, axle bearing, axle shaft, seals and gaskets

Hybrid Vehicle System
Hybrid System Warranty coverage is for eight years or 100,000 miles, whichever occurs first, and covers the following components: Hybrid control module, Hybrid battery control module, Hybrid battery and inverter with converter.

Now please verify your Hybrid coverage as some states give you 150,000 miles instead of 100,000 miles.