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insurance, it is everywhere. You can rest assured everything. Are tires an investment you have insurance? Tire insurance, also a road hazard policy, road-risk guarantee, or tire reimbursement plan, is a rapidly growing industry in the automotive world.

Tire warranty plans pay in whole or in part for the replacement or repair of damaged tires and / or rims from "road hazards." Road hazards are defined as pot holes, debris, nails, wood, and other road hazards. Curbs, sidewalks, walls, and not road hazards. This is an important distinction that in deciding whether tire insurance is right for you (go ahead).

Tire plans for a certain period of time and tire wear tread-depth. Some plans last 2-3 years. Others can last 5 years or 60,000 miles. Several plans come with fixed amounts of coverage: $ 500 per year up to 4 years. Many contracts require three years to understand Law School. In terms of tread depth, a tire is usually worn as (and thus the plan null and void) 2 / 32 to 3 / 32 inch.

Another important difference lies in the type of plan.

Tire refunds are just what they say. You, the plan holder, will be reimbursed after the claims of the rule is final 2-8 weeks. It is an out-of-pocket costs. These plans are often by new car dealerships. The prices range from $ 300 to $ 600 dollars.

Road hazard policies operate also to reimbursement plans. Some tire insurance, in partnership with the repair facility is a direct-pay relationship. Thus, there would be no out-of-pocket expenses, except for deductibles and items not in whole or in part. These plans are primarily sold by tire dealers and repairers. The prices range from $ 10 to $ 30 per tire. You may also be a certain percentage of the cost of the tire: usually 12% to 15%.

Both types of plans have a number of variables, with a magnifying glass to read the fine print. Also, many are pro-rata guarantees that only a certain percentage of the cost of the tire on the basis of their wear.

Claims and coverage

Depending on the plan, the claims are approved by the workshop. The process is fairly smooth, although it can cause a significant delay in the provider for authorization. This delay may be an hour or an entire weekend. This means that you click on "OK" of the tires replaced, and then hope that the authorization for the full amount, or take the free time.

Some plans offer national coverage either among their service facilities or from other repair centers. Claims procedures vary. Others only local coverage or cover the plant sale.

Limitations

Tire insurance does not mean that everything is covered. Pro-rated warranties are based on the wear of the tires. You can use 75%, 50% or only 10% coverage as a function of tread depth. You pay the remainder. While there are plans, in full, and that these limits, or they may conflict with a policy workshop.

For example, many plans for a maximum of $ 30 to mount and balance a tire, and a maximum of $ 15 for the repair of a tire. However, sport tires often have significantly higher mounting and balancing charges from $ 50 per tire and tire repair prices more than $ 90th There are also differences between the tire and rim prices even at the end, can be supplemented by the service customer.

Although it is generally not a problem with the latter given the competitive market, the service center of the price increases are not passed on to the plan made available. In this case, the service center must lower the price, or you, the service customer must pay the difference or somewhere else. That happens!

Rim replacement and repair

Rim replacement is less frequent. With the high cost of aluminum wheels and wheel sports packages, tires insurers have opted to repair it. Repairs will only happen if the rand does not hold air. This means that even if the rim is warped enough to create a vibration and even premature tire wear they do not replace it. Rather, they send them to streamline and repair.

Rims are replaced only when the damage is so great that the new tires, mounted on the rim, will not hold air. But even in this case, especially if it's an expensive sport wheel, they can still try to repair it.

Rim repair is a bad option. While some rim repair is acceptable, badly warped or damaged rims in no way is always the same.

Alignments

If a car hits a road hazard hard enough, like a pot hole, it makes sense that the alignment checked. Road hazard and tire reimbursement plans do not cover orientations. The service customer must pay for this procedure.

Road Hazard Protection Positive

Some plans are tire rotations, wheel balancing, and nationwide coverage.

Myths

Can I pop all 4 tires and a new set of tires?
You can try. But this type of exposure is a series of red flags with the insurer. The policyholder is likely to send adjusters and / or photos needed. They also have a difficult time explaining how a "road hazard" caused all 4 tire pop.

New tires come with a warranty.

New tires come with a warranty by the tire manufacturer (Michelin, Yokohama, Goodyear ... etc), but not a road hazard warranty. The warranty on the tire manufacturer only for defects in workmanship. New tire warranties do not apply to damage, breakdown or from external sources. This is why "road hazard" protection is pushed.

New tires are rarely broken. If there is a problem, it is usually in the balancing of the tires. Or there is a drivability concern such as vibration and noise. If there's a defect, it is usually immediately caught, and the tires have to be replaced.

It is so cheap, it is a non-need, right?

Actually, the experts are not with this statement.

The Economics of Tire Warranties

An article in the Washington Post by Terence O'Hara explains the economics of extended warranties and purchase protection plans in general. It is quite fitting for road hazard warranties. He writes:

The decision to purchase an extended warranty ... the recommendations of economists, consumer advocates and product quality experts, who all warn that the plans rarely benefit consumers and are nearly always a waste of money.

'[Extended warranties or purchase protection plans] make no rational sense, "Harvard economist David Cutler said. "The implied probability [have a problem with the product] is significantly greater than the risk that you can not afford to resolve the problem or to replace it. If you buy a $ 400 item that the vast number of consumers that the level of expenditure is not a risk you need to under all circumstances. "

In short, road hazard warranties are a waste of money. Not insure that you can afford to replace.

Numbers Game, and prospects

As with all insurance, tire insurance is a numbers game. However, this is a game you have a 98% chance to lose. Insider statistics show that the proportion of payments for the providers is as low 2%.

Curbs

Another interesting note is that many of the tire is damaged by curbs. Curb damage is not covered by the road risk policy. High granite curbs with sharp edges cut by tens of thousands of tires per year.

If these problems are not

Many people do not even notice the tire damage. Contrary to see if the tires hold air, the "real" deals with tires? Tires are a multitude of external influences, the bubbles, slices and grooves. Despite the potential dangers of damaged tires, the damage often is not in a noticeable drivability issue. The point is that if you do not have any tire damage you can not benefit from the reporting.

Research shows

These Raving about the benefits of a road hazard, the actual people in the industry to benefit arising from the sale. They will argue that it is so cheap only $ 10 to $ 20 per tire. Nevertheless, for the four tires, that's $ 80 on the basis of the "possibility", the "chance", the damage to a tire, the repair / replacement requirement protocols.

Auto Insurance

If a rim and tire has incurred significant damage, it is very likely that other problems will have. The first is that the vehicle was glass from the approximation. Secondly, hub bearings, front-end components: tie rods, spindles, ball joints, and a variety of other components can damage. In this case, car insurance, you've already paid, will pay for everything brand new.

Free Road Hazard Warranties

Many tires with road hazard warranties FREE. In other words, in the interests of retailers, many tire dealers service center road hazard insurance. Some shops, these tires to their customers, others sell. Ask if the tire "comes" with a threat to the road better. If this is not the case that an inquiry will be no additional cost. It is worth a shot.

Even some auto manufacturers, the road hazard warranty for free for 12 months or 12,000 miles. If you are buying a new car or even used to require the distributor a free road hazard policy (after all the machinations, which is made of course), and just before you commit.

What is the best way risk policy?

Money in your bank account.

Repair Trust
Making Sense of Car Repair Prices

Ted holds extensive certifications from Mercedes-Benz, Toyota, GM, and ASE. More than twenty years in the automotive service industry, he worked as a technician, master-shop, shop manager, shop owner, service advisor, service manager, consultants and service industries. He is the author of eight books and numerous articles for the automotive service industry.
Other Works by Ted Olson Include:

* ARREST the Automotive Service Industry!
* Maintenance Myths: A Step-by-Step Guide To Stop Getting Ripped Off!
* Auto-repair: The shocking truth about who is ripping you off and why!
* Motor-Service-Value strategies have a fair pricing guide for service centers
* Since the best customers a comprehensive service handbook for service advisors
* Personnel Service Center will host a garage for general information service staff
* Service-Mission Statement-a philosophical proposal to improve customer service