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Well, my Insight experience is getting on for three whole months now, so I'm not the best one to answer, but if you want my $0.02 worth, I'd suggest buying a used Insight, and finding someone you trust (not necessarily the dealer) to do the service. That way you aren't always dealing with warranty issues, and if it does break, it is, as you say, disposable :)

As far as battery issues, my impression is that in the worst case where they go out completely, you're left with a three-cylinder car with about Geo performance.
 
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