Extended warranty...? Yay or Nay or does it depend?

[dkoldman]

Originally Posted by BobC

Strange, when my traditional insurance companies (auto, rv, homeowners) pay out, they generally cut me a check immediately for their assessment of the damage and tell me to contact them if the repair shop says it will cost more. I'd think the extended warranty companies would be smarter than you describe.

Insurance companies are regulated, ESPs are protected by the fine print of their legal contract. They know every which way to Sunday to legally by their contract to deny you a claim. My insurance agent once wrote me a $900 check out of some slush fund account to give us because the wind had blown over a Cedar Elm tree that we had bought for $300. If that is not enough, we didn't call or intend to file a claim about the tree. We were talking something else and we were just talking about the recent storm.

CreativePart & Morich describe my perspective to the Tee.

There is a reason why everyone has Insurance but only a few buy the ESPs. I get the peace of mind perspective of some, but that process they may view as piece of mind would be living hell for me. As I stated above, the fact they would not allow me to buy a new Fridge was nothing short of unbelievable.

Simply put, I self insure my Auto/RV/ boat/ motorcycles repairs beyond Mfg and OEM warranty, and if I have doubts that major failures may occur, I either did not buy product or will sell as the product has aged.

[BobC]

I think a lot depends on a person's financial resources and DIY skills, and, as with any investment, their risk tolerance. It's very much a personal decision.

[dkoldman]

Originally Posted by BobC

I think a lot depends on a person's financial resources and DIY skills, and, as with any investment, their risk tolerance. It's very much a personal decision.

I certainly agree it is personal decision or choice.

I think perspective being made is a financial one because it can be supported by empirical data when an open question is made as to whether an ESP made sense when buying a new RV auto etc.

The irony and what I have never understood is why is it assumed that if one finances are implied not as strong; they should spend $7k to $10k on these plans? I only try to point out to educate because the hard reality is the vast majority of those that purchase these plans loose money. If it were beneficial for 51% of the owners that buy, the ESP Providers would go out of business in 3 months.

Also, I don't put my DIY skills very high when it comes to RVs. I also consider myself cheap ( not poor); but as Morich put it; I tend to just enjoy saving money out of habit.

Again, your point is made and clear to me. I was hopefully just trying to point out my belief that in the big picture; it is not financially sound except for the few that may have success story. Those success stories like the few casino winners are NOT the norm. If someone conveyed financial concerns to me, gambling is the last thing I would recommend for them.