EV Battery extended warranty..cheap

I took a different approach buying a $15,000 used BMW i3-REx last August:

• Optimum for City driving which avoids charge-discharge wear of my Tesla battery.
• Allows my Tesla 'self-maintenance' while getting unknown parts or tools needed.
• Sustains my life style should the Tesla be in the shop.
• Things beside the battery can fail.

Bob Wilson

 

Being well past the Tesla battery warranty, I saw these paths:

• 3d party battery 'insurance' or 'extended warranty'
• buy a battery backup in another EV, the 2017 BMW i3-REx

Recent bad experience with insurance company processing a claim, I have no trust or faith in them. A Tesla warranty, OK, but that is not available. Same is true with the BMW, manufacturer OK but 3d party, no way.

So if or when my Tesla or BMW battery 'gives up the ghost', I'll have the other and can either replace the battery or if too expensive, salvage the car. But I will be in charge and not some 3d party who may or may not be in business years from today.

Bob Wilson

 

There's a third option that I'll likely consider: buy a replacement EV. I've got over 82,000 miles on my SE, with no signs of range loss. By the time my battery actually has issues I'll be ready to look for a new model anyway, if not sooner. I don't think spending $4000 or more on insurance for a 4- to 6-year old car is a good bargain, especially considering how rapid the technology change in EVs is at the moment.

 

Yes, on a vehicle with over 100,000 miles. In my opinion, but to each their own.

 

The difference is that you are concerned that the battery will die before 165,000 miles. Puppethead is apparently not that worried.

My take is that the traction battery is probably the most reliable part on the vehicle. I would think the insurance company also believes that since they are offering insurance. Since the OEM warranty last 100,000 miles, I would think the manufacture has cycle tested the traction battery to make sure any warranty claims are very, very low.

Obviously, it's your call.

If you decide to buy the insurance, make sure you read the contract before handing any money over. The contract terms may depend in which state you live in, and may require you follow the recommended service requirements by the book.

Let us know how it works out for you over the next three years if you buy the insurance.

 

Different views for different people. I would never spend 60k on a vehicle myself, but trading in a 5+ year-old EV for a new 35k vehicle with newer capabilities isn't necessarily a bad deal, at least in my perspective. When I bought my SE I got 8K trade-in on my 6 year-old ICE MINI plus the $7500 federal rebate, so buying a new car is not necessarily extremely expensive. And as I said, it depends on what's available when it comes time to consider a new vehicle.

EVs have not been around long enough to get enough miles to know what the failure rates of batteries is likely to be, except for some Teslas. But the earlier EVs have different technology than current EVs, so I'm not even sure what data an insurance company could base their actuarial tables on.

But ultimately everyone should chose what makes the most sense of themselves, I was just positing an alternative view.

 

Here it the data chart blown up:

This is a classic "learning curve" going from 7.9% down to 0.1%. To which I would add the classic NMC battery aging curve as a function of charge-discharge cycles:

Add to that the owner's learning curve about charging practices that slow battery degradation. Like avoiding +80% charge levels and better battery thermal practices.

Arguing against a battery-phobia is a Sisyphus task. Better let that 'sparrow' go and sell to their kids with "cost $2.50 to drive 100 miles around town, not counting the 15% free charging at shops and malls."

I'm not against making a buck but some things, like 'extended Auto insurance', is really a hard sell for someone who six months ago had to pay $1,300 for a door repair after getting just $270 from an insurance claim. Liability insurance makes sense. The others, no.

Bob Wilson

 

Those are interesting graphs. Is there a similar graph showing ICE engine failures requiring replacement?

What would be interesting, too, with the batteries, is where in their life cycle are they most likely to fail. I think early on. I am thinking of some of the battery failures of the Kona, Bolt and some early Teslas due to manufacturing defects. Same could be said of ICE engines.

I am always looking for pro-EV facts to show my non-EV owner friends.

 

My history:

• 1991 Camry - using a 'teflon' motor oil resulted in perpetual oil consumption.
• 2010 Prius - developed a clogged, exhaust cooling valve.
• 2017 BMW i3-REx - urban EV driver. Car body parts wear.
• 2019 Tesla Model 3 - cross country EV driver. Car body parts wear.

Then compare the cost savings per mile:

• 1x (24 MPG) - 1991 Camry
• 2.1x (50 MPG) - 2010 Prius
• 4.6x (111 MPGe)- 2017 BMW i3-REx
• 5.5x (133 MPGe) - 2019 Tesla Model 3

Bob Wilson

 

Yes, all batteries can fail. However, when you look at the graph over 90% did not fail. And certainly other things can break on the vehicle that are covered under the insurance. Just make sure you read the contract for your state, as they may decline your claim if you do not follow all the rules in the contract.

If you want to move that risk to the insurance company, then it's your money. Maybe it will be a smart move, or maybe you will have spent thousands of dollars and not needed to make a claim. However, if it helps you sleep and not worry, then maybe its money well spent.

Understand that insurance companies would not be offering insurance if they didn't think they would make money.

I believe traction batteries fail mainly due to manufacture issues; expansion and contraction which causes nano-fractures in the anode; and breakdown in the internal chemistry over time. Tesla's cylinder metal can helps control expansion, and Tesla/Panasonic is pretty good at keeping manufacture issues under control.

Anyhow, thanks for point out this insurance company, what it seems to show is that they believe they will not have to payout many claims for the traction battery or they wouldn't be offering the insurance. That seems to backup my claim that the traction battery is one of the most reliable parts on an electric vehicle.

 

Just buy your extended warranty and be happy.

 

I would bet that that chart is skewed by one main thing... the Nissan Leaf. Nissan's early batteries were notorious for failure. Poor batteries, and an even worse BMS.