Has anyone had experience with insurance for wheels and tires? I’ve had it before and it worked out great! This time around, they charge a $50 deductible for a tire change. Never had that before, and dealer didn’t say anything to me about the deductible, nor did I get any notification of such. Makes it less worthwhile this way. Has anyone changed a bmw tire with this type of insurance and had to pay 50 as deductible, within the past 6 months or so?
If the terms of your coverage say there’s a $50 deductible then it is what it is, no way around it.
Next time make sure to look at the details before agreeing to the extra insurance.
And the fact that other folks may have different plans on different cars from different dealers with zero deductible is completely irrelevant.
No different than health or auto or homeowners there are different providers of tire and wheel insurance with different terms, levels of coverage, deductibles, etc., so ultimately you just need to read the fine print of whatever coverage you signed up for in the F&I office.
These products are largely priced so that a typical use case results in the manufacturer making money given the likelihood of them being utilized. Therefore unless you have a reason to believe you’re more likely to mess up a wheel or tire, they largely don’t make sense. Ie if your area had really bad roads with significant pot holes or etc.
Generally insurance is best utilized for catastrophes and besides that, it is negative expected value. You could take the cost of the insurance, invest it reasonably and you would likely come out far ahead in the vast majority of situations , again unless there are atypical conditions.
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Agreed.
F&I office should be for contract, DMV and essentials for signing only. While there are very few exceptions, the rest is generally pure profit for the dealer and shold be avoided.
Hey there,
Dealerships offer tire n wheel insurance packages through 3rd party companies and each of these have different terms when it comes to deductibles and coverages. I was surprised when i read through my first one that cosmetic coverage of a wheel is separate from a actual wheel damage and tire coverage. Some have $0 deductible and others may have $50 or $100 deductible per occurrence. Always good to check and ask before adding to your lease.
I have been leasing for almost 15 years now and never used to get tire n wheel insurance but now I make sure to add it on all my new leases and also recommend it to friends and family. The main reason was the area where I am (S. Florida) road conditions, conditions etc. Second thing is the price. I negotiate the tire n wheel package to anywhere from $1500 to $1800 for the vehicle. Also, some of these insurance packages are a bundle which means that they come with paintless dent repair, key repair blah blah. On a 36 month lease its $40 to $50 a month, the extra piece of mind for me is a no brainer and luckily I have used up more than what its worth it every time.
Just to put an example On my last XM which i had for about a year, I paid $540 extra for coverage but during that one year, I had 1 new wheel and tire replaced (est $4k), 2 new tires ($1.8k) and before the lease was transferred, I had 5 dings on the roof due to palm trees which in S. Fl market is about $1k in fixes. So about $7k worth of fixes in 1 year for $540. That’s how I look at the packages.
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I get it, and each person’s use case is different.
That is why I said there are exceptions.
Yea, not reading fine print is on me for sure. Figured I had the same exact coverage before, what can change. Lesson learned.
Even a $50 deductible isn’t too bad given how expensive tires are, especially if you historically damage a lot of them over the course of your lease. I never get the “tire and wheel” because “historically” I’ve not had issues with a lot of damaged tires/wheels. Now my neighbor on the other hand, I emphatically tell her to get it. Seems like she blows a tire or bends a wheel every 6 weeks.
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