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The analogy is 100% valid IMHO... (archive)

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Posted by SL on January 14, 2000 at 08:18:16:

In Reply to: I can understand where you came up posted by Tom Oliver on January 13, 2000 at 19:36:37:

Any time you buy an insurance policy you are placing a bet. As macabre as it sounds, a term life policy simply means you're betting you will die before the period covered by the premium expires, and the insuror bets a much larger sum on very favorable odds that you won't. Never mind that you sure hope to lose that bet!

An extended warranty is nothing in the world but an insurance policy bought to cover car repairs. However, IF you are in a position to self-insure for car repairs instead (not everybody is) the alternative proposed at the beginning of this thread is a good idea that has better overall odds of coming out in the car owner's favor.


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