Tire/Wheel Protection Program. Worth it or not.

Hi All,
I paid $595 for a Luxury Tire and Wheel Protection warranty at the dealer when I signed the lease. It covers the 3 Year Lease period.

Here's the coverages...
Replacement of Tire/Wheel in event repair is not possible with like tire/wheel using the current retail market value of the replaced tire/wheel.
Coverage of all costs associated with the repair or replacement of tires and/or wheels plus labor charges including mounting, balancing, valve stems, taxes and towing.

I have 330i with stock 225-45-R17 run flats. Non-SP.

I never have had a flat in ~20 years of driving, but these new run-flats have me worried. It's also the first time I've had a car that has a wheel/tire combo that costs ~$500. (Anyone actually know what the '06 330i stock 17 inch wheel and tire go for?)

While I feel I may have overpaid for the coverage, seems like the amount I paid was more like a 5-year coverage than 3-years, can ye all comment on the value/usefulness of the policy. I have 30-days to cancel the policy.

I talked to my insurance company and while there is rim/tire damage covered by insurance, it does not cover flats from nail/screw on the freeway type situations. I also have a $500 deductible, so claiming under insurance is really not an option.

Reply » Tire/Wheel Protection Program. Worth it or not.

I would pay $300 for it for a car with SP or runflats. But nothing more.

Reply » Tire/Wheel Protection Program. Worth it or not.

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I would pay $300 for it for a car with SP or runflats. But nothing more.

Any idea where I would get it for $300. (Southern California)

Reply » Tire/Wheel Protection Program. Worth it or not.

some of the Autonation dealers in the BayArea were offering it for $300 two years ago.
You got to look at this way:
In a 3 year 36K lease you will have to change tires once at least.
If a tire failure happens close to that event then you can just replace the tires at one go.

The only case you are screwed if a brand new tire goes bad or if a tire goes bad close to the end of the lease. In the second case you can actually buy insurance from the tire store; it is about $20/tire. A bad RF will cost about $300; the prices should come down. Do you really expect more than one catostrophic failure in 3 years.

The extra insurance you get for the rims is something else. Do you drive very fast over pot-holed roads to bend rims, especially non-SP rims? Most curb rashes can be fixed for $100.

So I would just deposit the cash in a bank and hope that it is not needed.

Reply » Tire/Wheel Protection Program. Worth it or not.

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I'm inclined to agree with you. I think I'll cancel the coverage. I've got up to 30 days, so maybe I'll hold on for another few weeks just in case

Reply » Tire/Wheel Protection Program. Worth it or not.

(soapbox mode on)
Small insurance for small failures is usually a bad deal. This includes extended warranties for TVs, etc.

First, like all insurance, the buyer by definition must pay more for it than the insurer, on average, will pay out. So you already know that, on average, your likely expenditure for these costs will be less than $595 in three years. If your average expenditure were to be more than this, they'd have to charge more for it.

So, what's the likely amount you would have to pay if you had a failure? I'd guess $300 for a tire, and $500 for a rim? $800? What are the chances of losing two over the course of the lease? Near zero for most people.

So, unless the small risk of having to pay $800 sometime in the next three years is really unbearable to you -- so unbearable you will pay $600 to avoid it -- I'd suggest skipping the insurance.

Now, of course there is an exception. Some people know from experience that the roads near them suck, and that they have a much higher chance of needing this sort of coverage. And some people, for whatever reason, have really bad "rim karma," and have lost multiple rims driving on perfectly clear streets. If you are in one of these two categories, you should get the insurance.
(soapbox mode off)

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