mine was up on the X5 approx 18 months ago, had a similar quote and decided as car is low mileage I would go it alone. Have had one small issue with headlights, cost was £200 for which BMW easily agreed to pay 50% therefore over the period I have paid out £100 rather than almost £1500 on a warranty. That gives me a bit of a fund to put towards anything major should be happen which at moment seems unlikely.
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