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NJSS
Member Since: 06 May 2009
Location: Catherington, Hampshire.
Posts: 10844
  
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| D4 Warranty - self insuring |
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I have for many years used various warranty companies to provide extended cover for my Land Rovers.
I look after my vehicles, and, for instance, change oil & filter half-yearly or at 6k miles.
My current D4 was registered in March 2016, and has covered c. 26k miles. Any warranty will thus have to kick in from April next year.
I am seriously considering self insuring, rather than taking a policy with Warranty Direct. If I do this I am thinking of "ring-fencing" a fund, and paying into it about what WD would charge me per month, probably £500 to £600 per month.
If all worked out I would be saving WD's administration costs, Insurance Premium Tax (& VAT ?) and course their profits.
I am proposing to start paying into the fund now, so that in 12 months time it will stand at between £6k & £7.2k.
As an aside I'm thinking or doing this in respect of my BUPA contributions, and any other extended warranties which SWIMBO has taken out on "white goods". I will "pool" the funds, but calculate the contributions in a similar manner.
Your (sensible) thoughts please gentlemen.
NJSS Am I Gammon or Woke ? - I neither know nor care.
2016 Discovery 4 Landmark
2011 Mercedes Benz SL350 (R230)
1973 MG B GT V8 - 3.9L John Eales engine, 5 speed R380 gearbox, since 1975.
1959 MGA roadster - 1.9L Peter Burgess Engine - 5 speed gearbox
Past LRs - Multiple FFRs, Discos & a Series I - some petrol, some diesel,
none Electric or H2 fuel cell - yet.
There are 10 types of people in this world: Those who understand binary, and those who don’t.
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 19th Apr 2018 8:12 am |
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adam
Member Since: 20 Sep 2005
Location: Home and Happy
Posts: 6917
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Obviously a warranty PA is a about a tenth of what you are proposing.
IMO...
Positives:-
no worries / scrapping over payouts if something goes wrong up to the value of your fund
Negatives:-
cost of cash tied up (not interest - that's worthless at the moment) - what else could you do with it?
Most warranties cover to value of car.
I have a warranty at the moment - but would probably err on the side of what you are thinking TBH, either way, your choice 
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| 19th Apr 2018 8:23 am |
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Jarvis
Member Since: 16 Dec 2009
Location: West Berkshire
Posts: 280
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£500 to £600 per month premium for a warranty on such a new car? Sounds like the monthly finance payments on a new D5 would be cheaper 
You could offset your "pool" against your mortgage and add the savings to the pool - this could make the pool grow quickest.
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| 19th Apr 2018 8:26 am |
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NJSS
Member Since: 06 May 2009
Location: Catherington, Hampshire.
Posts: 10844
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Adam
Many thnaks.
I have got a WD (first) quotation today for:-
Core policy
Multimedia & SatNav etc..
No betterment
Emission kit etc..
£625.00 per annum! I would expect, in time, with negotiation & fine tuning to get this down but this is what drove me to consider self-insurance.
I have checked & think that the premiums include IPT @ 20% & VAT. Is VAT charged on the IPT element?
Jarvis - I wouldn't consider a D5; my thoughts are to run the D4 until it's 7 or so years old, when I will sell it with less than 100k miles on the clock. At that stage I will consider what's available, but will probably go for an EV or petrol Hybrid; I would love Hydrogen power, but I doubt it will be viable in 5 years time.
NJSS Am I Gammon or Woke ? - I neither know nor care.
2016 Discovery 4 Landmark
2011 Mercedes Benz SL350 (R230)
1973 MG B GT V8 - 3.9L John Eales engine, 5 speed R380 gearbox, since 1975.
1959 MGA roadster - 1.9L Peter Burgess Engine - 5 speed gearbox
Past LRs - Multiple FFRs, Discos & a Series I - some petrol, some diesel,
none Electric or H2 fuel cell - yet.
There are 10 types of people in this world: Those who understand binary, and those who don’t.
Last edited by NJSS on 19th Apr 2018 9:35 am. Edited 1 time in total
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| 19th Apr 2018 8:33 am |
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adam
Member Since: 20 Sep 2005
Location: Home and Happy
Posts: 6917
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£625 a month
I'd shop around if warranty is still your thing
I took a warranty out in 2017 - first time on D4 - (got D4 in early 2010, so was out of warranty for nearly 4 years at that point) - it was the Armageddon of a snapped crank that made me do it
TBH - if you can, putting £500 a month away for 18 months gives £9k - which is what I will probably start doing again next year.
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| 19th Apr 2018 8:55 am |
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kajtzu
Member Since: 10 Aug 2017
Location: Helsinki
Posts: 6771
  
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For the rest of us in Europe without extended warranty contracts, what you’re proposing is “business as usual”. A lot of people don’t even have a self-insurance fund but pay when they need to repair something... 
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| 19th Apr 2018 9:05 am |
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NJSS
Member Since: 06 May 2009
Location: Catherington, Hampshire.
Posts: 10844
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Update -
WD just rang me to "discuss" the quotation I had done on-line this morning.
I asked why the increase over cover for my D3. The answer was "claims experience". I said that I would like to reduce the premium down closer to my D3 premium, and was told there was no chance.
He did ask me to "feed back" my reaction. It was apparent from what was said, & unsaid, that he is struggling to sell WD products for the D4 & other similar LR vehicles.
Panic over ! Although neither the written quote nor the salesman made this clear this quotation was for an annual premium of £625 ! 
NJSS Am I Gammon or Woke ? - I neither know nor care.
2016 Discovery 4 Landmark
2011 Mercedes Benz SL350 (R230)
1973 MG B GT V8 - 3.9L John Eales engine, 5 speed R380 gearbox, since 1975.
1959 MGA roadster - 1.9L Peter Burgess Engine - 5 speed gearbox
Past LRs - Multiple FFRs, Discos & a Series I - some petrol, some diesel,
none Electric or H2 fuel cell - yet.
There are 10 types of people in this world: Those who understand binary, and those who don’t.
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| 19th Apr 2018 9:07 am |
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Russell
Member Since: 23 Aug 2007
Location: Kent
Posts: 10564
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| Re: D4 Warranty - self insuring |
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NJSS wrote:I have for many years used various warranty companies to provide extended cover for my Land Rovers.
I look after my vehicles, and, for instance, change oil & filter half-yearly or at 6k miles.
My current D4 was registered in March 2016, and has covered c. 26k miles. Any warranty will thus have to kick in from April next year.
I am seriously considering self insuring, rather than taking a policy with Warranty Direct. If I do this I am thinking of "ring-fencing" a fund, and paying into it about what WD would charge me per month, probably £500 to £600 per month.
If all worked out I would be saving WD's administration costs, Insurance Premium Tax (& VAT ?) and course their profits.
I am proposing to start paying into the fund now, so that in 12 months time it will stand at between £6k & £7.2k.
As an aside I'm thinking or doing this in respect of my BUPA contributions, and any other extended warranties which SWIMBO has taken out on "white goods". I will "pool" the funds, but calculate the contributions in a similar manner.
Your (sensible) thoughts please gentlemen.
NJSS
£600 per month, why not go for the genuine LR warranty which also covers an MOT payment as well.
One other thought, if you are paying that sort of money into an account, why not set up a premium bond accound and ay the money into that, at least you stand the chance of winning somthing and increasing your money MY17 D5 1st Edition Namib Orange
MY15 D4 HSE Kaikoura Stone
MY12 D4 HSE Nara Bronze Sold and gone
MY11 D4 HSE Stornaway Grey Sold and gone
D3 S spec Silver Sold and gone
Tow bar, full length roof bars, side steps, tow bar storage unit, surround camers.
D4 camera club
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| 19th Apr 2018 10:12 am |
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NJSS
Member Since: 06 May 2009
Location: Catherington, Hampshire.
Posts: 10844
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Thanks Russell
It's £625 p.a. not per month !
Nevertheless you make 2 good points.
Regards
Nigel Am I Gammon or Woke ? - I neither know nor care.
2016 Discovery 4 Landmark
2011 Mercedes Benz SL350 (R230)
1973 MG B GT V8 - 3.9L John Eales engine, 5 speed R380 gearbox, since 1975.
1959 MGA roadster - 1.9L Peter Burgess Engine - 5 speed gearbox
Past LRs - Multiple FFRs, Discos & a Series I - some petrol, some diesel,
none Electric or H2 fuel cell - yet.
There are 10 types of people in this world: Those who understand binary, and those who don’t.
Last edited by NJSS on 19th Apr 2018 12:03 pm. Edited 1 time in total
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| 19th Apr 2018 10:22 am |
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Erea
Member Since: 19 Mar 2012
Location: Munster
Posts: 1509
 
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While self warranty for white goods and your car might make sense I wouldn’t dream of doing it for health insurance you mentioned BUPA . I’m in my 40’s and in good health but still have had payouts on my insurance a few years well over my premium for that year.
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| 19th Apr 2018 10:27 am |
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Jarvis
Member Since: 16 Dec 2009
Location: West Berkshire
Posts: 280
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NJSS wrote:Thanks Russell
It's £625 p.a. not p.a. !
Nevertheless you make 2 good points.
Regards
Nigel
pa or pm?
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| 19th Apr 2018 10:37 am |
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Pelyma
Member Since: 06 Jan 2005
Location: Patching, Sussex
Posts: 15496
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Lots of my clients self insure for health, once you start getting the wrong side of 70 it can be ruinously expensive. DS3 TDV6 HSE - Silver with Alpaca (old one) Gone
DS3 TDV6 HSE- Silver with Alpaca (new one) Gone
D4 HSE Lux - Montalcino Red Gone
Porsche Cayenne V8 Diesel S
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| 19th Apr 2018 10:41 am |
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Erea
Member Since: 19 Mar 2012
Location: Munster
Posts: 1509
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I’d agree at a guess in the last four or five years while my mother was with us her health insurance was probably paying out 30-40K a year minimum I remember one bill that the insurance paid out for about 10-15 days in hospital was over 25K
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| 19th Apr 2018 11:04 am |
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professorpool
Member Since: 19 Mar 2012
Location: Woking
Posts: 3213
 
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I have "self insured" my vehicles for repairs for years, unless the car came with warranty loaded in (example when new).
£500-600 seems a lot mind. What sort of repairs are you envisioning?
I'd be more inclined to take out a fresh credit card with a credit limit of, say, £10,000 but never use it - unless in the event of a traumatic repair.
So let's pretend your vehicle is fine for another year (no costs, no cash tied up, no admin) and then you have a £5,000 repair bill. You wack it on the credit card you took out and then pay £500-600 a month to clear it off and paying a little interest.
But lets face it, that would be a serious repair bill. If you are adverse to that level of risk then you should buy the warranty.. D3 07 SE - still going strong
D3 07 HSE - gone to car heaven
FL1 - gone to Romania
D3 05 HSE - gone to a divorce diet
D1 V8 manual - gone but not forgotten
RR Classic - gone to car heaven
Jeeps, Lexus, X-trails... Too many to name..
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| 19th Apr 2018 11:31 am |
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