Any interest in a third-party warranty that covers modified cars?

[zvilly]

Hi everyone,

I'm a new member here, I have always been occasionally following discussion topics, but never actually posted.

I was wondering if there is any potential interest for a warranty product that would take over the balance of your factory powertrain (engine + transmission) warranty when your car is tuned. For instance, you have a '15 S4 and you would like to install an ECU tune or a pulley kit from APR, but are worried about having the car flagged with TD1 and having no warranty coverage. You would be able to purchase a separate warranty for $1000-$2000 that would cover the balance of your powertrain warranty with those mods.

Curious to see if there is any interest...

[GRUMPY-S4]

Who would underwrite it?

[zvilly]

Policies would be underwritten by a mid-sized Insurance company

[Rocketsauce16]

Louisiana dealer services, none of them are going to market it that way, but something that is not sold by a dealer where they will try to protect the warranty company.


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[Rocketsauce16]

I used them in Texas at an Audi dealer and had my stage 1 JHM car covered for 20k motor with parts and labor lol


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[zvilly]

Looks like they're already out of business lol

[MrFunk]

STaSIS anyone?
Pay to play... too much risk and too slippery a slope... people will be adding 10X power to engines, blowing them up and wanting warranty replacement? Not gonna happen...

[QuattroRocket]

STaSIS anyone?
Pay to play... too much risk and too slippery a slope... people will be adding 10X power to engines, blowing them up and wanting warranty replacement? Not gonna happen...

Yeah this !

Already been tried and financially it wont fly premiums have to be too high that no one will buy a policy.

[MjolnirCFC]

Hi everyone,

I'm a new member here, I have always been occasionally following discussion topics, but never actually posted.

I was wondering if there is any potential interest for a warranty product that would take over the balance of your factory powertrain (engine + transmission) warranty when your car is tuned. For instance, you have a '15 S4 and you would like to install an ECU tune or a pulley kit from APR, but are worried about having the car flagged with TD1 and having no warranty coverage. You would be able to purchase a separate warranty for $1000-$2000 that would cover the balance of your powertrain warranty with those mods.

Curious to see if there is any interest...

Personally, i think there is interest. But i think you will a need to balance underwriting risk with premium price.

For me personally, i would want to see the underwriter pick up the gap in warranty left by the modification.

From an underwriter's perspective, as others have pointed out, you need to limit the risks associated with absurd modifications (say, by limiting warranty to power and torque increases of 25% and below).

But then, you would need in depth research as to whether that 25% is ok across the board for all makes (ie Toyota and Lexus may be easily able to handle power increases of 25% having regard to their reliability and quality of construction. Audis, VWs, etc may not).

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[AKPS4]

Not worth the time/effort.

[Guitarmageddon]

Seems pretty suspect.

And how would you limit power and torque? Ask for a dyno?? Ok, Ill just go lighter in the foot or turn the boost down.

Completely unrealistic.

[bberg22]

They could certify specific tunes from companies for specific models. Similar to how Dinan works for BMW perhaps?

[zvilly]

Personally, i think there is interest. But i think you will a need to balance underwriting risk with premium price.

For me personally, i would want to see the underwriter pick up the gap in warranty left by the modification.

From an underwriter's perspective, as others have pointed out, you need to limit the risks associated with absurd modifications (say, by limiting warranty to power and torque increases of 25% and below).

But then, you would need in depth research as to whether that 25% is ok across the board for all makes (ie Toyota and Lexus may be easily able to handle power increases of 25% having regard to their reliability and quality of construction. Audis, VWs, etc may not).

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Very valid point - it's ultimately a balance of pricing of the warranty appropriately, considering the risk involved. Obviously controls need to be put in place to allow coverage for a healthy power bump while keeping the risks of failure in check.

I was just curious to see what some of the members here think.