Warning: Tyre Insurance Ripoff

I just bought a used car from our local BMW dealership. They tried to sell us a whole load of protection policies that cover paint, gap insurance etc. We said no to all of them, but the tyre protection policy looked like a really good deal.

For just £299 they would replace up to 5 damaged tyres over a period of 3 years. This car had Run Flat Tyres (RFT) and knowing that RFT's cannot be repaired after a puncture (I've got them on my other car) and that they're almost twice the price of normal tyres, we decided to sign up for this one. A single tyre on this car can cost over £250, so we thought this was a no brainer. Thinking it was too good to be true I studied the small print before signing but all seemed fine.

I got the full policy document through yesterday and guess what? It was too good to be true! The limit on the policy is £300, which is enough to cover just one tyre, not 5. In fact I can't think of any recent BMW's that you could replace 5 tyres on for £300. I just double checked and there was nothing about policy limits on the document I signed. I'm now trying to cancel the policy.

So a warning to others, don't just read the small print, ask for the policy limit to be confirmed before you sign anything.
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Comments

  • zkw29
    zkw29 Posts: 176 Forumite
    Is it definately £300 total or is it £300 per tyre? Why would anyone pay £299 for up to £300 worth of tyres?
  • G-G_4
    G-G_4 Posts: 3,090 Forumite
    I should think it would be a maximum claim of £300 up to a maximum of 5 occasions... ?

    Like zkw29 said, why pay £299 for £300 of protection?
    :D BSC Member 155 :cool:
  • missile
    missile Posts: 11,684
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    I would agree it is likely 5X £300 max, but that still sounds like a rip off to me.

    Why did you sign up for it? £250 per tyre:eek: , you want to go somewhere else for your tyres. How many damaged tyres have you had to replace in the last three years?
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • raskazz
    raskazz Posts: 2,877 Forumite
    I tend to agree with others wo have responded in that I'm sure the £300 limit refers to the maximum claim for one tyre, although it does limit you to making five claims of up to £300 each in the policy period.

    I wouldn't buy it simply because you can go for thousands of miles on a slow punctured run-flat as long as you keep it an eye on the pressure regularly and don't thrash it.
  • Biffer
    Biffer Posts: 172 Forumite
    missile wrote: »
    I would agree it is likely 5X £300 max, but that still sounds like a rip off to me.

    Why did you sign up for it? £250 per tyre:eek: , you want to go somewhere else for your tyres. How many damaged tyres have you had to replace in the last three years?

    I did check this with them over the phone. The maximum that can be claimed on the policy is £300 whether you damage 1 tyre or all 5 over 3 years. They're big tyres and the cheapest I can find the rears in RFT spec is £282 - at Blackcircles and they're normally one of the cheapest.

    I've got another BMW with run flats fitted and I've had 2 punctures in the last 2 years. As they can't fix them, that cost me over £200 per tyre. This is what made the insurance look so appealing.
  • G-G_4
    G-G_4 Posts: 3,090 Forumite
    But your post said that the wording states they will replace up to 5 damaged tires over a period of 3 years..

    I don't see the point in having the insurance otherwise?

    Can you cancel, use your 14 days cooling off period?
    :D BSC Member 155 :cool:
  • Biffer
    Biffer Posts: 172 Forumite
    I just called them again and it appears the 1st customer service rep got it wrong. They will allow you to claim 5 tyres @ up to £300 each :) Which is a relief. They actually cover 4 tyres fitted to the vehicle and 1 spare. So as I've got no spare that's 4 tyres @ £300.

    However the policy does stipulate that it only covers the 4 tyres fitted to vehicle at the time of taking out the policy. If you have to replace all 4 tyres a few months later, if they're worn below 2mm, the policy is worthless, as it only covers the original tyres for 3 years, not new tyres. I don't know how they'd know if you were claiming on an original tyre or not?

    I average one puncture per year and new tyres every 2 years and these tyres look fairly new. So it might just pay for itself.
  • missile
    missile Posts: 11,684
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    Let's hope you never need to claim on the policy
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • hi guys :beer:
    i ve just made 1 claim - well luckily i have MADE the claim .1 tyre costed 220+ on my bmw 530 ..you actually need to get an OK before you get it repaired ,but im ok as the National tyres guys helped me :T ,as they are 1 of the approved dealers.

    anyway , i am now buying another insurance for another bmw 520 - its only £175 car2cover.co.uk , well worth it ! :D
  • dacouch
    dacouch Posts: 21,637
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    Bear in mind it may have a "Betterment Clause" which is often invoked on tyre claims. This in effect means that if your tyres had an expected life of 4 years and you made a claim for them when they were two years old. The insurer would normally ask you to contribute 50% of the tyre cost as you would have brand new tyres. Have a look at the policy and also ask BMW Insurance whether they do this as it could affect the amount you receive towards a new tyre dramatically
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