986 Forum - The Community for Porsche Boxster & Cayman Owners - View Single Post - Extended Auto Warranty Experience (Long Post)

mikefocke · 01-02-2011, 04:16 PM

http://insurance.oregon.gov/insurer/financial_regulation/obligors.pdf

Extended warranties are like a casino:

* some who play will win
* a very very few will win very big
* most by far will lose
* the casino will make a lot of money.

Only the casino odds are so much better...there the percent returned to the player is generally more than 80% as opposed to the extended warranty where it approaches 20-30%. Like a casino, you hear the stories of the people who win big and that persuades you to play. You mostly don't hear about all the many, many more people who lose.

01-02-2011, 04:16 PM	#4
mikefocke Registered User Join Date: Aug 2005 Location: Sanford NC Posts: 2,537	Who is behind the "warranty" http://insurance.oregon.gov/insurer/financial_regulation/obligors.pdf Extended warranties are like a casino: * some who play will win * a very very few will win very big * most by far will lose * the casino will make a lot of money. Only the casino odds are so much better...there the percent returned to the player is generally more than 80% as opposed to the extended warranty where it approaches 20-30%. Like a casino, you hear the stories of the people who win big and that persuades you to play. You mostly don't hear about all the many, many more people who lose.