Extended warranty options

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03-15-2023, 06:42 AM

#11

Doug2.7

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Quote:

Originally Posted by kumar_shah@yahoo.com

Agree entirely.

Insurance companies make a profit. So statistically, what you will get back from them will always be less than what you pay.

There is a reason no one buys insurance against a light bulb burning out. Largely because the price of a new bulb will not be a hardship. True of everything else: only buy insurance in cases where you will suffer hardship if something happens. Life insurance for a head of household with young children, heck yes (but not if you are Mark Zuckerberg). Or buy insurance because you get better rates through the insurance company, as for healthcare. Or if required by law, as in auto insurance.

Extended warranties for electronics, appliances and cars are not smart.

Depends on the vehicle. The 2019 A6 mild hybrid was a new platform. I have had vehicle warranties on two first year production model cars and they both paid for themselves in zero repair costs. The 10 year 100k on my 2029 A6 fully loaded has paid for half my warranty costs so far.
If I bought a 2nd-3rd or 4th year new car, I would think twice about an extended warranty because i could look at its history of possible TSB's and recalls before deciding.
I bought a used truck from a dealership and they threw in a $900 extended warranty. My alternator went out a year later and paid for most of that then my 1 stage turbo went and more than covered the warranty.
So it depends on a few factors before deciding. Would i buy an extended warranty on a household appliance? Nope.