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Tire insurance

12K views 90 replies 32 participants last post by  ard 
#1 ·
Hi all,
I have been debating the sport package on my 535xi that I ordered. My concern is the durability of the 19" wheel with the lower profile tire. Do you think that having such low profile tire necessitates tire/wheel insurance? The dealership offers it for $950 and it covers tire and wheel damage (including replacement). Is it any less necessary if you get the stock wheel with the higher profile tire? What are your thoughts?
 
#2 ·
There are a lot of factors that go into the decision to buy tire insurance. Most importantly are your road conditions and driving habits. If your roads are well paved on your common routes then you will likely be fine. If you've driven sports cars or vehicles with low profile tires in the past you should be fine and used to avoiding pot hole and seam joint damage. Things to consider are rough road on normal profile tires likely mean very rough on low profile RTFs. Only the biggest pot holes will actually damage the tire. Those steel plates are most dangerous. Also, if construction is common in your area the likely hood you will get a nail will increase. RTFs "should" not be repaired after a puncture (I can not find a tire shop to perform the repair in the SF Bay Area). The RTFs are not faberge eggs, contrary to feedback you may see on the forum.
 
#3 ·
I'd guess it depends more on the road conditions where you live than the wheel/tire selection. I never had a tire incident on my own cars so I regard the insurance as a pure waste of my money. If you on the other hand have had many problems with flat tires in the past the insurance could potentially be worth it.
 
#6 ·
If you are intrested in wheel and tire insurance, your best bet is to shop around. I got it for the M3 as I was concerned about the 20" wheels and low profile tires. Flow BMW (board sponsor) had by far the best coverage and the lowest price at the time.

So far, it has been a complete waste of money, but if I shred one PS2 or crack one rim it will more than pay for itself.
 
#7 ·
Seeing that you are in the Chicagoland area I would definitely get insurance. The road construction there is never-ending!

I started buying it about 4 cars ago when I had an Audi A6 Turbo and must have blown out 4 tires and rims hitting potholes here in Philly. It turned out to be unused for my previous two cars, both Infiniti Ms, as I did not have one flat. When I bought my current 550i, all it took was one look at those low profile RF tires and nice rims and I realized, blow one or two tires/rims, it would more than pay for itself. It is like any insurance...you hope to not need it but it is nice to have if you do!
 
#9 ·
I purchased it on my last car and I will never do so again. The main reason is that when you need to make a claim it is a real hassle. I actually just gave up. Remember that you are dealing with an insurance company. When you do some damage you need it fixed right away. They make you jump through hoops and I just gave up. Never again. :thumbdwn:
 
#10 ·
I believe there are tire insurance companies that do make it relatively easy to file a claim. But nothing is more easy than just paying for a repair yourself when it happens and having complete freedom to choose from who you want to purchase.

There was a previous thread on tire and wheel insurance in which I asked the salesmen pushing it in the thread to clearly spell out what the advantage of their product was to the consumer. They couldn't give a straight answer.

The only logical reason to buy tire/wheel insurance is if you believe you are a high risk customer, and you also believe the tire/wheel insurance company has not accounted for that in the price of the policy they are offering you. In other words, you believe that on average you would pay more in replacing/fixing tire/wheels than you would for the policy.

Obviously a tire/wheel insurance company cannot have a lot of customers like that or else they would quickly go out of business.

YMMV. Good luck with your decision.
 
#11 ·
If everyone needs the insurance because they will get three or so flats and around two bent rims then the insurance is way underpriced. It should cost $2,000 plus. What this probably means is that most people do not have such large amounts of tire and wheel damage, otherwise the insurance companies would not make any money on these policies. My 535xi is due some time in October or November and I am sure the dealer will try to sell me tire insurance, extended maintenance, and possibly an extended warranty. I am going to ask them the cost of these plans and then say that I appreciate them telling me what these insurance policies cost as I am going to set up a savings account with that exact amount of money and see over the years which was cheaper, their insurance or my self insurance. If I make out well on this car I can afford an even bigger risk on the next car. I have never purchased an extended warranty on a car.
 
#17 ·
... I am going to set up a savings account with that exact amount of money and see over the years which was cheaper, their insurance or my self insurance. If I make out well on this car I can afford an even bigger risk on the next car. I have never purchased an extended warranty on a car.
Exactly. For the non-major expenses in life, self-insurance is the winning strategy.

Extended warranties for consumer products often have at least 100% markup. What that means is that if, for example, you buy a new HDTV there may be, let's say, a 5% chance that it will require a $1000 repair. That means the policy is worth $50 to the average customer. But they may charge $150 for the policy, making out with a 200% markup. To the 5% of people that need the repair, having a policy is great. And just like people that have a win in Vegas, these are the anecdotal stories we hear that help fuel more sales of these policies. But overall, it's a losing proposition, and if you buy the extended warranty for everything you own you will ultimately be paying more than twice as much for repair costs over your lifetime.

Tire and wheel insurance is a little different in that you may have knowledge about your particular risks that the insurance company may not. But this simply pushes the insurance companies to get more sophisticated about knowing their customer's situation (car they drive, area they drive in, claims history, etc.). For example, we've seen some tire and wheel insurance companies simply stop offering coverage for people that live in or around NYC. Other insurance companies have responded by jacking up their prices for people that drive BMWs and live in higher risk areas. The bottom line is that if you think you can do the math better than the insurance company, then go for it, but realize that you are betting against the house, so to speak.

What I look forward to from a wheel and tire company is something like this: First, develop an inspection method that can certify used wheels and tires as safe. In this way, the company can collect a stock of used wheels and tires to help replace damaged ones. Then, for example, if someone with 1/2 worn tires gets a flat, instead of replacing all four tires, replace just the damaged tire with one that is the same make, model, and amount of wear. This saves money, and part of that savings can be passed on to the consumer, making it a product that adds real value.
 
#19 ·
Thanks for all the replies. Do I need to worry any less with the stock 18" wheels and slightly higher (55) profile tires?
Yes. A smaller wheel/bigger sidewall gives you more protection from pothole damage and other road hazards. The more tire there is between the rim and the road, the less chance there is you'll pinch your tire with your rim against the road, which will likely flat your tire, bend or crack your rim, or both.

There may be other things going on with BMW's 19" wheels as well:

http://www.bbc.co.uk/blogs/watchdog/2009/10/bmw_alloy_wheels.html

If you live in a pothole laden city, then 19" wheels may not be for you.
 
#23 ·
Early in this thread I posted about why I believed in tire insurance, especially living in pothole riddled Philadelphia. The subsequent responses seemed about 50-50 about buying the coverage. On Monday my car went back to the dealer for finishing the fuel sensor recall (don't ask why it took 2 visits) The SA called to say that my low tire pressure light was on. Apparently they found both of my front tires had a sheet metal screw imbedded in them. I don't know how or when this happened and, hopefully, it will be a freak occurrence but with only 2500 miles on the car I now needed two new front RFTs to the tune of $985 THANKFULLY fully covered by insurance. THAT is why I buy tire insurance. It has now pretty much paid for itself with ~32 months still on the lease! :thumbup:
 
#24 ·
I "sort of" believe in the insurance too. Not so much for the tires, but more to protect against the expense of replacing a bent wheel. And in your case, the policy certainly seems to have paid for itself.

Call me cynical, but I do find it "curious" that the low tire pressure light didn't come on while YOU were driving the car, but that you mysteriously picked up not one, but TWO screws as the car was being driven into the dealership service bay!

BTW my local tire shop (not the dealer) charged me $25 to plug a nail hole. If you'd gone the same route, your insurance really only saved you $50.00 (unless you had a deductible you needed to pay out-of-pocket?)
 
#27 ·
Hey, I ordered my 535xi and have no idea what kind of tire or wheel size it has. Am I getting this "low profile" tire you mentioned?
 
#28 ·
Greetings

Hi All,
I bought a Bimmer today (2011, 528I, Black w/ cinnamon brown leather) and pretty excited about it.

The only thing which is bothering me is the huge huge money the dealer made me pay for the tire/rim insurance. I paid 1375 (the dealer was saying he is doing me a favor by selliing it for 1375 instead of 1475...MF). THis is in Houston advantage BMW midtown dealer.

He was not willing to listen or not even ready to match up if I show him proof of what others are charging. I was scared to leave teh dealer w/o the coverage. He however confirmed that I can get rid off that coverage if I want to.

I have read all the posts and I know for some people its pure waste of money while some made real good use of it. If possible I would like to get this coverage for around 600 to 700 bucks.

Any ideas where I can shop (I heard some autoknight store). Is it any good?

Please please help me and b careful if u r in Houston and want to buy Bimmer. The sales team was fine but the finance guys are really vultures....

Please help me with other options where I can buy insurance. Should I call other Bimmer dealers and ask. ( I think these guys took advantage of me coz mine was a custom order and they knew I will buy it anyways)

Hoping to get some direction n looking forward to be a member of this community

Best regards,
New2bimmer7
 
#36 ·
The only thing which is bothering me is the huge huge money the dealer made me pay for the tire/rim insurance. I paid 1375 (the dealer was saying he is doing me a favor by selliing it for 1375 instead of 1475...MF). THis is in Houston advantage BMW midtown dealer.

He was not willing to listen or not even ready to match up if I show him proof of what others are charging. I was scared to leave teh dealer w/o the coverage.
You seem to have a serious victim mentality. Don't be such a victim. Man up and grow some balls.

At least you are researching how to fix this. Good for you.

He however confirmed that I can get rid off that coverage if I want to.
Hopefully you got that in writing. What is the time limit to cancel, or what is the proration?
 
#29 ·
@ New2Bimmer7: You can buy your wheel and tire insurance from anywhere - doen't have to be local. When I got my M3 I bought mine from Flow BMW in Winston Salem NC, even though I am in MA.

You could start by PM-ing some of the dealers who are active on BFest, like Adrian in Atlanta, or Ivan at BMW of Bloomfield (NJ)

You can also look at non-BMW plans. For example, I understand Hendrick Auto Group has its own product. Do a search of BFest using the key words wheel and tire insurance. Most of the plans offered may not be as "good" as the BMW plan (e.g. my policy has a lifetime maximum dollar amount they will pay), and you also want to make sure the insurance company behind the policy is in good financial shape.

G/L!
 
#30 ·
Thanks quackbury

Hi
thanks a bunch for the response. So from what you are saying it looks like I can buy this insurance from any BMW dealer (Dont want to go for any cheap, unauthorized ones). I was told by the dealer that either you buy it on the day you purchase a car or never. If that is not the case I will shop around and see if any one can offer me @ lesser price. Will start with the name that has been mentioned by you.

Again thanks a bunch and it really really helps to have good knowledgeable members like u....

@ New2Bimmer7: You can buy your wheel and tire insurance from anywhere - doen't have to be local. When I got my M3 I bought mine from Flow BMW in Winston Salem NC, even though I am in MA.

You could start by PM-ing some of the dealers who are active on BFest, like Adrian in Atlanta, or Ivan at BMW of Bloomfield (NJ)

You can also look at non-BMW plans. For example, I understand Hendrick Auto Group has its own product. Do a search of BFest using the key words wheel and tire insurance. Most of the plans offered may not be as "good" as the BMW plan (e.g. my policy has a lifetime maximum dollar amount they will pay), and you also want to make sure the insurance company behind the policy is in good financial shape.

G/L!
 
#32 ·
you can buy ins anytime.

i bought it 2 years into my lease for $500.00
 
#33 ·
Thanks buddy for the info.... I can't tell you how many times the dealer told me its either today or never..... These guys should be prosecuted......

I mean we all try to make some extra money but not by scaring or cheating ppl. Anyways I'm still looking for some list of dealers in the TX state so that I can shop around ASAP and get rid of this crappy plan I got my self into.

Thanks:)
 
#35 ·
I'm still looking for some list of dealers in the TX state so that I can shop around ASAP and get rid of this crappy plan I got my self into.

Thanks:)
You can search for dealers on BMWUSA.com, using the find-a-dealer function. Not sure why you'd want to limit yourself to TX dealers, though. (I assume the wheel and tire coverage is subject to sales tax; if you buy out-of-state, you may save some $$$).
 
#37 ·
this insurance ended up costing nothing. i paid $500 for 5 tires and 1 wheel for a 335xi sport insurance 18" wheels. before the insurance i paid for 5 tires out of pocket.
they also have insurance that cover small dents and scratches now.
 
#42 ·
To clear away some of the misinformation, I had my CA email me a copy of the actual agreement (attached). Here's my take:

  • It states quite clearly that the coverage can ONLY be purchased the day you take delivery. (This is contrary to my expectations). :confused:
  • You have 30 days to cancel and receive a 100% refund (though in some states there is a processing fee of up to $40). After 30 days, you can receive a pro-rata refund, minus the processing fee.
  • No deductible, and no limit to the number or dolar value of claims. This is better than the warranty I purchased for my M3. :thumbup:
  • There is no pro-rating of tires for wear. If you have 2/32nds of tread left, they replace it with a BRAND NEW tire. (Although if you only have 3/32nds on the other 3 tires, they are certainly going to pressure you to replace all 4; one on their dime, three on yours).
  • Covers OEM Wheels ONLY. No aftermarket. However, it does not appear that the wheels have to be the same ones that came with your vehicle. Example: I n the winter I will be taking off my 20" 214's and running 18" OEM wheels with my snows. It appears damage to an 18" wheel would be covered - provided it's OEM. If you mount Elbrus, Moda's, etc. you are SOL.
  • If the repair is done at the dealership, it covers OEM tires ONLY. I am sure this means the make and model of tire that came with your vehicle. If you ditch the RFT's for something else, you are SOL.
  • If the repair is done anywhere else, it covers OEM wheels and "OEM approved replacement tires." I read this as saying you can switch brands and still be covered as long as (a.) you are still on RFT's, and (b.) the tire is on BMW's "approved" list. I suspect that eliminates Kumhos and some other options.
  • I am asking my CA to get me a list of "OEM approved replacement tires". If she sends that to me in Acrobat format, I will post it as well.
  • The plan covers the cost of mounting and balancing, but apparently does not cover the cost of rebuilding the TPMS sensors (gasket kit required each time you mount new tires).
  • They can deny a claim if hte vehicle is out of alignment. I think they could also deny a claim if you run spacers.
  • The coverage is backed by Virginia Surety Company, Inc. AM Best assigns them an A- rating. Not phenomenal, but not terrible either.

Dealer quoted me $1,049 for the 3 year plan. If I need to replace 2 20" summer tires or 3 18" snow tires, it will pay for itself, as long as I am content using the OEM tires. It is pretty clear the dealer can set the pricing on this. If they didn't bend you over enough on the Money Factor, Acquisition Fee, etc., they can make up for it here.

Now the disclaimer: I am not an attorney. I don't even play one on TV. So don't assume any of my above comments are 100% accurate. But I thought it would be helpful to post the agreement so we could all review it prior to being pressured when taking delivery.
 

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#44 ·
Very informative post. Thanks Quackbury.

Dealer quoted me $1,049 for the 3 year plan.
How much markup do you believe is added?

Certainly the insurance company has their take, and the dealerships are also in for a good slice of the action. My guess is that the markup is well north of 100% and probably more than 200%.

The fact that there is a restriction that you can only buy it the day you take delivery is a very interesting one. The only reason I can think of is to add pressure to the sale. The odds of someone coming back to buy their product is probably low, so they figure, why not pump up the heat when they have their best chance. Can anyone offer a different reason?
 
#46 ·
Quack- Great post... thanks for taking the time to summarize and document!

A
 
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