# Velocare extended warranty / maintenance plan



## liquidgas (Oct 1, 2006)

My LBS is trying to sell me on a Velocare extended warranty. Does anyone have experience or feedback on Velocare? It similar to Trek's Red Shield plan in that it's supposed to cover normal wear and tear but not consumables such as tires, brake pads, grips. The Trek Top Fuel I'm looking at has a SRAM GX drivetrain, and a five year plan is $205 for a bike that cost $1500-2499. I understand it depends on how much I plan to ride the bike, but I could see going through at least one chain and rear cassette over five years. The parts cost and labor would probably be close to the $205 price which is why I'm considering the plan. 

I can also see the plan not being worth it if Velocare only replaces parts once they fail. I would like to get the chain and cassette replaced once its stretched and not after it completely breaks during a ride. Velocare is also supposed to cover suspension, but it does not cover normal maintenance or tune ups. I am trying to find out if suspension rebuilds are considered consumables and I would have to pay or if it's a wear item and covered under Velocare. The suspension rebuilds would easily cover the plan cost, but if Velocare only covers failures I do not expect the fork or shock to completely break. I expect Velocare could even decide the shock breaks or wears out because I never rebuilt it and considered it abused. I am also curious if brake bleeds are wear and tear or if it falls under the maintenance and tune up category. Anyone else know more about Velocare's policy for suspension and brake bleeds?

Did Trek stop offering their Red Shield plan? I was also offered Red Shield when I got a Trek road bike about five years ago, but passed because it didn't seem worth it for the road bike.


----------



## TiGeo (Jul 31, 2008)

They sell these because they make money on them; they have obviously done the math and it shows that you will pay $205 and not get that value back out. Chains and cassettes, to me, are normal wear and tear. So really, it only is going to cover things that break.


----------



## cjsb (Mar 4, 2009)

It is hard to say when a replacement is effective, just isn't clear to me after reading. Presumably "failure" for a chain is when it needs to be replaced based on stretch and hopefully not to the point where it ruins your cssette, although I guess that would be covered too, so who cares. It seems like a lot of value when you look at the figure at the link below, but who has a stem failure or handlebar failure? Honestly, I haven't had rim failure ever, although Hub has been an issue at times. You have to remember that parts have their wn mfg. warranty, too, so it isn't like you are totally exposed without extended warranty.

Personally, I know how and have fixed or replaced almost everything "covered" and I don't see any value at all for me.

Also note that it expressly states "time of sale". that means that anything you upgrade is not covered. Okay, who here has not upgraded as soon as they get their bike home, the following: pedals, saddle, bars, grips, stem? Who hasn't upgraded wheelsets in a year? Anytime you upgrade a covered component you dvalue Velocare.

It is a service that has its place, but for me, no way.

http://www.bikerumor.com/2015/05/15...locares-extended-warranty-plans-for-bicycles/

Sent from my iPad using Tapatalk


----------



## Lone Rager (Dec 13, 2013)

TiGeo said:


> They sell these because they make money on them; they have obviously done the math and it shows that you will pay $205 and not get that value back out...


Not exactly. Averaged over many people who buy they plan, they absolutely take in more than they pay out, though they may lose money on some individuals. That's basically how all insurance works.


----------



## mack_turtle (Jan 6, 2009)

I worked at a Trek shop in the service depattment and had a few customers who really made their Red Sheild worthwhile. I replaced an entire XT drivetrain for one guy twice, several broken spokes, headset bearings, shift cables frequently, etc. All parts and labor paid for. Basic maintenance on a few Red Shield customers I had would have been hundreds and hundreds of dollars, so if you ride a lot and wear out stuff, you can save a lot of $$.

The problem is that many shops know how to sell Red Shield but do not know how to process the claims, so the shop gets screwed by their own laziness. The service plan probably makes most of its money on people who buy and forget about it and lose a little bit money on people who use it wisely.


----------



## TiGeo (Jul 31, 2008)

Lone Rager said:


> Not exactly. Averaged over many people who buy they plan, they absolutely take in more than they pay out, though they may lose money on some individuals. That's basically how all insurance works.


I'm 43 years old and have never purchased extended warranties etc. for cars, bikes, computers, etc. And you know what? I have never wished I had on any of those purchases in hindsight. They aren't worth it for the majority of people. Save the few hundred bucks and upgrade something on the bike. Unless you know it will cover worn drivetrain (worn, not damaged) parts, this is unlikely to get much use for most folks. An XT chain and cassette will set you back ~$100 online and you can easily install these yourself.


----------



## cjsb (Mar 4, 2009)

these extended warranties are likely very profitable for Velocare, as the less you ride the more likely they pay out zero or minimal. the more you upgrade the less they are obligated to cover. As Mack stated above the LBS may not
view them so "favorably." The shop must get a commission at point of sale but processing claims could be some serious transaction costs for them. if a claim turns out unfavorably for a customer, the customer is likely to be mad at the shop who sold it to them. 

change in technology, desire to upgrade, low cost of components through internet are all reasons to avoid extended warranty even if you ride a ton. 


Sent from my iPhone using Tapatalk


----------



## AndrwSwitch (Nov 8, 2007)

One of my friends did really well on one of those plans, but I do think he was kind of an exception. He bought a cheap hybrid when he moved to Seattle and then commuted on it regularly basically until the plan expired. Since the bike had garbage components, they didn't stand up to actually being used all that well, and the plan covered replacements.

As soon as the plan expired, he bought a more appropriate bike.

So I think part of this is how you want to/will react to things wearing out or failing. I think a lot of us see parts failures as a sign that we should replace that part with something more fit-for-purpose or just better. I don't mean that as a criticism of the bike's designer. I think they're doing their best to make the best bike they can for a certain use case and budget. We as bike owners often end up with a little different use case and often feel comfortable spending a little more on a part here and there once we've had a bike for a season.

I'd really read the fine print, too. I see chains and cassettes as consumables, myself. Sealed bearings, I could see either way. And I think you said they don't cover preventive maintenance? There go your suspension rebuilds.

I swapped a lot of stuff for more fit-for-purpose things on my $600 re-entry bike. An extended warranty wouldn't have been hugely useful unless I wanted to live with its RST fork long-term. I doubt that was worth $205.

I have a much nicer bike I bought in 2013 and have over 2500 miles on. I started blowing spokes and killed a freehub in the rear wheel. That was actually covered under the regular warranty, but I still bought some more traditionally-spoked wheels with nicer rims and hubs instead. I had some trouble with the brakes, and those also got covered by the regular warranty. I legitimately wore out the rear derailleur and had to buy a new one; didn't pay $205. And I broke a pivot pin. I can't remember if I ended up paying for the replacement. But it wasn't super expensive.

Sent from my E5803 using Tapatalk


----------



## liquidgas (Oct 1, 2006)

Thanks for all the input. Seems like no one here has actually purchased Velocare for their bikes. Probably not going to purchase it since I really only wanted it for the suspension rebuilds, but I agree I would not get the full value of the plan from a cassette and chain replacement.


----------



## mack_turtle (Jan 6, 2009)

liquidgas said:


> Thanks for all the input. Seems like no one here has actually purchased Velocare for their bikes. Probably not going to purchase it since I really only wanted it for the suspension rebuilds, but I agree I would not get the full value of the plan from a cassette and chain replacement.


assuming this is covered, how much would it cost, labor included, to replace your chain, cassette, chainrings, shift cables, and bottom bracket? if you ride enough, you might need to do that at least once a year. when I had a red shield customer come in, I loved finding everything I could that is worn on the bike and replacing all of it on the warranty company's dime, and I saved my customers hundreds of dollars. mind you, most of these customers rode constantly, raced, and wore stuff out. these are 4-5 chains per year kind of riders. if you don't ride that much and that frequently, it's probably not worth it.

I don't know about Velocare, but with Red Shield, most customers would not benefit from it and are just buying peace of mind. for customers who really use it, the company loses money on covering their legitimate issues, just like any other kind of "insurance."


----------



## cjsb (Mar 4, 2009)

the cheaper the bike and the more you view the bike as utilitarian, and you use it a lot, then you can come out ahead. or if it is set up just the way you want and you use it a lot then you come out ahead. But most people buying new bikes let them sit around until the tires go flat.


Sent from my iPhone using Tapatalk


----------



## MTB_MOR (Jul 4, 2018)

I have Velocare and after 1000 miles I have gotten two new chains and a new derailleur cable. I brought the bike in once it started skipping gears and they submitted the claim. The shop kept my bike overnight, but that was the only drawback. I asked about the cassette and was told it was still good.


----------

