Quote:
Originally Posted by Mr Sunshine
Some folks will benefit and swear by those extended warranties. Keep in mind that the dealer gets somewhere around half of your cost for commission, and the issuing company has to make a profit. With the exclusions and the deductibles, the odds are against you ever making claims equal to your insurance premium costs. Just sayin'...
Your results may vary.
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That's the way all of these services (insurance, service contracts, etc.) work.
The companies make money because in total they take in more fees/premiums than they pay out. Those that purchase them have the piece of mind that if something very expensive happens they have a back stop.
Nobody is upset when their house doesn't burn down because they never make back the premium on their house insurance.
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