| Message: | | Yup, there are a lot of bad companies out there writing extended warranty insurance.
Extended warranties are insurance. The premium amount is equal to the average claim, plus administrative costs, plus profit. On average, your repairs will only equal the average claim. So, on average, you'd be ahead not buying insurance.
If a company's premium is less than the average cost, they'll go out of business.
Insurance is for covering potential losses that would wipe you out. Insuring against small losses, on average, increases the cost of those losses.
Medical, liability, and homeowner's casualty are the big ones. A good case could be made for not carrying casualty insurance on cars if they're value is small compared to your income and net worth.
| |
© 1997 -
2009
Jump Internet Inc. All rights reserved.
