Wear and tear insurance, worth it?

I live in an area with a heavy Indian presence.


Disclosure : Dealer

I added it for the first time on my Mirai. $100 cost so it was $370? Seems worth it to not have any bill coming back from Toyota. No need to replace tires before return if needed.

Toyotas EWU covers $1000 per incident and up to $5,000 total.

I’m going to add a few points to consider to this list which is spot on by the way:

discount mall was already mentioned, but i’m going to ad Walmart specifically to the list. They never collect the carts and those will eventually roll into the side of your car and cause damage.

do you park at home depot and lowes a lot? often times the spots are tight and the people that go there drive a banged up pickup or box truck and will dent you because they don’t care.

Do you hunk your horn at other drivers/bicycle riders often? They sometimes like to seek “revenge”.

Do you live in an area with bad weather where they use snow plows etc.

Most importantly and already mentioned, do you street park? If you live in a condo and drive to work and both places have designated covered spots, then i don’t think it’s worth it. If you live in boston and it snows and you street park everyday and you work at home depot and park there for work…it’s probably worth it.

Each panel usually has a cap you can cover for example I had my customer come in with what seemed to be a ax chop on the back of his trunk which he told me was a “small dent” :joy:. I spoke to our body shop and paint guys the repair would have a cost of about $1,300 minimum. The cap per panel for BMW is $1,000 so it won’t be covered. Everyday stuff is covered: rock chips on the bumper, curb rash, scuffs on the doors handles, scratches etc.

Thanks, Samson. So in your experience, if the cost of the repair exceeds the cap – or “coverage limit”, so to speak – then it wouldn’t be covered?

Humor me as I provide hypothetical real-life application. Let’s say you have purchased excess wear and tear that covers $1,000 worth of damages. Upon lease turn in, we discover a dent on the bumper from someone backing into the front of the car, requiring a $1,200 bumper repair/replacement.

Would the first $1,000 of that $1,200 repair be covered under excess wear and tear? Or would this type of damage exceed the terms of what excess wear and tear covers (ie only scratches, scuffs, chips), therefore making you liable to cover the full amount of the bumper damage?

If the damage exceeds the $1,000 then you would be responsible in the situation. The way to think about it is if you bring a car in totally messed up with $10,000 in damage then there would be no profit for the company if they were coughing up $5,000 for every car basically they wouldn’t do it.

Makes sense. So does the excess wear and tear in the above example only benefit you then if your car has less than $1,000 worth of damages (dents, scratches, etc)? Or are you covered for the first $1,000 in damages?

Are wear and tear fees negotiable if one chooses to renew a lease? How much is forgiven? Or do dealers typically not waive them even if you choose to lease another vehicle? Assuming one did not have the insurance.

Dealer would have no say in the charges. That would be between you and the captive. Dealer sells you the car…you deal with the captive for anything else after that.

Minor damage charges are usually waived if you stay loyal to the same captive when leasing again, however, YMMV.

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FYI you can purchase Wear and Tear insurance after the lease is made.
I am aware of one product that you can get up to 3 months after lease inception.

from what i recall its ~$400 for 5k in damages (although they do have a cap on each incident )

I am getting the info now will post when available


I think there will be a difference in how a post-purchase protection works. Post-purchase it would work more like insurance, where you file a claim, hope the insurer approves, and then you would get reimbursed (ideally). That’s how credit card auto rental coverage works.

If you buy XS Wear through GM Financial, my understanding is that it’s an actual damage WAIVER, so you are never even charged. That means there are no claims to file and no money out-of-pocket upfront.

EDIT: If someone has the various wear and tear policy documents, it would be helpful to post them here. I recall seeing the GM Financial XS Wear as a contract addendum. I haven not seen the terms of the other leasing companies.

If it’s $999 of damage it’s covered if it’s $1000.01 it is not covered at all.

That’s what caused me to not buy the policy on my recent lease. Back into a pole? Likely over $1k in damage and not covered. Somebody backs into your car when parked and then takes off? Bumper damage is usually over $1k so not covered.

But with shopping cart dings and door dings, it might have been worth it so I could park at Costco and not worry.

I’ve been working in my position for about a year with average 40+ cars going out every month. I’ve only seen maybe 2 instances where BMW didn’t cover the damages, and their damages were basically car accident level in which they should have contacted their insurance company.

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Thanks for the info!
I know we are just taking the “$1000” as an example for easy discussing, could I get some idea about the real price when leasing a BMW? Thanks!
(eg maybe $1000 package could cover up to $6000 something :slight_smile: )

Average $1450-$1550 from what I usually see



How long usually after you have leased a car can you add in the wear and tear insurance and/or tire and wheel coverage?? Does it have to be added the day you sign the contract ?

Also are there separate policies you can get through your insurance company? I have been researching and see that Allstate offers excessive wear and tear on their policies, has anyone used it ? Says it covers up to $5000 worth of wear and tear. If anyone has any experience or has used this it would be greatly appreciated if hear more about it. Thanks

Wear and tear has to be added at the same time you sign your lease agreement.

Tire and wheel depends on the company’s internal policy and some have a 30-60 elimination/waiting period.

I never saw the point in waiting to buy tire and wheel. If you’ve made the decision to get it, get it the day you get the car that way if something happens on the drive home, you’re covered.

Living in Brooklyn, you have to be nuts not to take a damage waiver. The $495 pays for itself and you can relax for the next three years if you ever get a scratch.

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Think the answer is “it depends”. With 3 kids under 9, and a wife who think side mirrors are optional, I definitely do it (seriously trying to figure out how the headliner in the last car got stained, lol) On my personal car, through 5 prior leases I have never been charged a dime.