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OldBlevins · 12-20-2007, 01:30 PM

My take on extended warranties - or any other kind of insurance for that matter - starts from the obvious. The firms that sell them make money on them. That means the law of averages is that you'll pay more for the warranty than you'll collect in claims.

It makes perfect sense to buy warranties or insurance for things where the loss is great enough you simply couldn't cover it - liability insurance, homeowners insurance, etc.

All that to say, if you can afford to pay the $3K the powertrain insurance covers, you're better off not paying the $700. racer-d has it right, even though he was talking about the other insurance option. Just my $0.02

12-20-2007, 01:30 PM	#10
OldBlevins Registered User Join Date: May 2007 Location: Puget Sound Posts: 176	My take on extended warranties - or any other kind of insurance for that matter - starts from the obvious. The firms that sell them make money on them. That means the law of averages is that you'll pay more for the warranty than you'll collect in claims. It makes perfect sense to buy warranties or insurance for things where the loss is great enough you simply couldn't cover it - liability insurance, homeowners insurance, etc. All that to say, if you can afford to pay the $3K the powertrain insurance covers, you're better off not paying the $700. racer-d has it right, even though he was talking about the other insurance option. Just my $0.02 __________________ - Jim 2000 Boxster S, Speed Yellow, Michelin AS/3 tires, 60,000 miles... ... and climbing.