Extended Auto Warranty Experience (Long Post)

[Soetekouw]

Thanks. Very informative. I have an extended warranty with Warranty Direct. I just hope that if I ever have to use it, the process will be simple and payment will be rendered. My dealership states that they will work with me if there is a claim to be filed, but that I will have to pay the dealership out of my pocket, first, and then have Direct Warranty pay me. Otherwise, they will hold my car hostage until the payment is received.

[mikefocke]

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.