EV Battery extended warranty..cheap

The bottom of the chart says that early Leafs and early Model S batteries had a higher failure rate.

We know that Tesla has made several changes to the battery over the years. We also know that Nissan made several changes to the Leaf battery over the years.

I believe that the traction battery will be pretty reliable. However, if you are one of the unlucky few, it's going to hurt if you run into a failure after the warranty expires.

Some folks are just more risk adverse then others. The insurance companies play up to that fear and will sell you an extended warranty for a few thousand dollars. The insurance companies are in the business to make money. So they believe overall that they will take in more money than the will payout in claims.

These extended warranties are hawked on TV all the time. So I have to believe they are very profitable.

 

All the first-gen EVs had poor battery management. I'd include Fiat 500 and Chevy Spark, but those probably didn't sell enough to have the statistical impact that the Leaf would.

 

Ok, here's a trick, invest the insurance premium in TSLA stock (or the stock of the company whose car you bought.) If the battery fails, sell the stock to discount the replacement cost . . . assuming you keep the car. When the stock value reaches the replacement battery cost, stop buying.

You don't have to put all the money in at once, just make monthly stock purchases until it reaches the premium cost of the policy and/or the battery replacement cost.

The advantage is when (or if) the battery fails, you have the stock sale cash to decide where you want to go next. An insurance policy is restricted to just what is covered.

Bob Wilson