Mechanical Breakdown Insurance

[BenLavNZ]

Hi all,

I have a 2013 JKU and its manufacturer warranty ends in November 2016. I've spoken to various mechanics whom I know, and the general recommendation is to go for an insurance policy after the warranty has expired. I know that is is dependent on the provider, I'm looking at one here locally and for $1,500NZD I can get 4 more years of coverage. However, no off-roading will be covered, understandably. One of the mechanics mentioned that any odd vehicle could be looking at $15k (NZD) for a failed transmission.

So I am torn. I'd like the protection of the insurance, but that may limit my off roading (overlanding?) for the next 4 years! Having said that, I only want to do minor stuff, not heavy duty off road.

Given it is about $800 (again, NZD) for just a service (plus consumables depending on the mileage of the service), $1500 over 4 years (with an excess of $300) seems reasonable.

[prerunner1982]

Some people swear MBI/Extended warranties are the devil. A lot of people say to just put money back every month into an account specifically for repairs, but let's be honest you have a Jeep.... that money would be mod or off road trip money, right? The coverage is good to have if you need it, if you don't end up needing it you might feel you wasted your money but how much is the peace of mind worth?

Some companies may void your warranty or not cover certain repairs for mods, some companies may have a certain amount of allowable mods (3" lift, 3" larger tires, etc).

As far as the offroading, if you come in with a bent axle, mud all over, and a tow strap wrapped around your bumper they probably won't cover it but a normal mechanical failure as long as the Jeep is fairly clean they likely won't think twice...moral here, washer her down good (including the underside) before taking it in.

The contract/policy should also allow you to cancel within the first 30 or 60 days of purchase so you can look over the contract and if it isn't going to work well for you get your money back.

My Jeeps are too old for coverage except maybe engine/trans only but I have had coverage on my wife's last two vans and have about broke even on those. It helped because at the time of the needed repairs I didn't have a lot of extra money laying around.

I don't know where all Mechanical breakdown coverage is sold in NZ but if you have a choice I would stay away from a dealership. They typically have the ability to mark up the cost substantially. Stick to an insurance agent or lending institution if you can.

I don't know the specific rules and regs in NZ, all my info/experience in the industry is here in the US.

Here it is not uncommon for a "warranty" company to pay out $15K USD for repairs on BMW/Mercedes, Asian vehicles are on the low end, and American vehicles in the middle of the pack.

If Jeeps are expensive to repair there it may be worth it, but again if you keep it well maintained you may be alright. If I am doing my math correctly $1500 NZD is about $1092.50 USD. To me that seems reasonable. What is the mileage limit on that? I assume 48 months and 48,000 miles.

It's better to have it and not need it, then to need it and not have it.

Read the fine print, you are welcome to send me a copy for review if you would like. I have worked in this industry for the last 10 years here in the states.

[BenLavNZ]

Cheers Jon, I might take you up on that offer. The booklet is surprisingly small for the official policy document. I feel there is a bigger one behind the scenes that isn't posted on the website.

I've done 60,000kms, the insurance is 4 years and I think 160,000kms (37k miles and 100k miles). However the agent I spoke with seemed to think they were more focused on the time frame than the mileage, he insinuated that it is essentially it was 4 years unlimited mileage, but I need to check that, doesn't feel right.

[prerunner1982]

Cheers Jon, I might take you up on that offer. The booklet is surprisingly small for the official policy document. I feel there is a bigger one behind the scenes that isn't posted on the website.

Most likely, what you probably received was more of a brochure than the complete policy.


I've done 60,000kms, the insurance is 4 years and I think 160,000kms (37k miles and 100k miles). However the agent I spoke with seemed to think they were more focused on the time frame than the mileage, he insinuated that it is essentially it was 4 years unlimited mileage, but I need to check that, doesn't feel right.

4yrs unlimited mileage, possibly but not as likely.
Also the mileage term could be add on or upto. It could add on 160,000 kms or stop when the vehicle reaches 160,000 kms. If you obtain a quote I would get it in writing and see how the term is noted.

[BenLavNZ]

Yep. I am not sure what the 160k os referring to (current mileage plus or total mileage). I'll shop around and see what i find. I think 1500 over 4 years is pretty reasonable for peace of mind.

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[cantab27]

cant help ya but ,my jeeps being older ....can talk to a couple of blokes down here who run jks or talk to local jeep club as well maybe...........take jon up on his offer ...good man right there........................

[denverd1]

I'd do some reading on 2013 JKUs, their tranny and problems people are having.

If a tranny cost you 15K, its a no brainer. buy that shit today.

just curious, how much did the whole jeep cost you? may be cheaper to replace the jeep than the tranny. then you have a parts rig. 15K tranny, holy chit batman.

[cantab27]

http://www.trademe.co.nz/Browse/CategoryAttributeSearchResults.aspx?sort_order=24_ desc&search=1&cid=268&sidebar=1&5=RV%2FSUV&14=Jeep&15=Wrangler&18=0%2C0&24=0%2C0&54=jeep&searchRegion=100&sidebarSearch_keypresses=0&sidebarSearch_suggested=0

[BenLavNZ]

Near on $40k NZD

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[denverd1]

http://www.trademe.co.nz/Browse/CategoryAttributeSearchResults.aspx?sort_order=24_ desc&search=1&cid=268&sidebar=1&5=RV%2FSUV&14=Jeep&15=Wrangler&18=0%2C0&24=0%2C0&54=jeep&searchRegion=100&sidebarSearch_keypresses=0&sidebarSearch_suggested=0

:confused: :thumbdown: :eek:

[Infidel Edition]

Depends on your wrenching abilities.
That kind of $$ goes a long way for misc repairs.
The big thing on Jeeps in general is electronics and leaking.

I'd see if you can get an extended coverage on "electronics" only. And even that is a stretch.

To replace a transmission might be spendy in a local shop. But if you're handy and live near a junkyard, it's not that big of a deal.
Even on new vehicles, long as it's a match on trannies, it's plug and play.

[cantab27]

not that easy down here dave ..swapping out is ,done a few ,still cost shit load down here for jeep parts even outta a junkyard....

[Infidel Edition]

not that easy down here dave ..swapping out is ,done a few ,still cost shit load down here for jeep parts even outta a junkyard....

Didn't notice your location. :rolleye0012:

[BenLavNZ]

Yeah my handyman skills aint that handy!

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