Should I go with a dealer offered wear & tear insurance?

Hi Leasehackr Team,

I was wondering whether it is better to go with a wear & tear insurance offered by the dealership or are there any better alternatives out there?

The problem that I’m seeing is the coverage ceiling currently of $4000. Should I be worried about that?

Thx for the help team!

Hi Turbojoe,

If you’re set on getting wear and tear coverage, then the manufacturer-backed offerings are a good choice (e.g., BMW Lease Protection, Hyundai Protection Plan, Ford WearCare). These can be rolled into your lease payment, and they typically make lease returns more painless than with a third-party offering.

That said, I would question the need for wear and tear insurance in the first place. Door dings, light scratches, and scuffed door panels fall within the realm of normal wear and tear. Unless you’re particularly abusive toward your car or have the worst of luck, we don’t think wear and tear coverage is necessary.

Take a look at the following lease return guides from Mercedes-Benz and US Bank. The guides define excess wear and tear:


Hi - when I leased my vehicle I also purchased a wear and tear warranty. I have since bought out the lease 3 months before it ended. Since I bought out the lease and will have no need for the wear and tear warranty, does the dealership need to refund me the price I paid for that warranty?

Thank you,

Take a look at the contract to see if there is any proration.

Somehow I think you’re not going to have much luck getting a prorated refund 33 months into a 36 month lease.

This among other reasons is why I don’t typically recommend excess wear & tear coverage. It’s worth nothing if you buy the car out and you have to feel pretty confident you’ll have more damage than the amount you’re paying for the coverage anyway.

After 30 days, the dealership doesn’t have anything to do with your warranty. Call the warranty company and see if they will offer a prorated refund (likely no, but ask and see what they say).

Thank you all for this information! This is much appreciated.

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