rickinAZ
Well-Known Member
- Thread starter
- #1
There are many threads discussing the purchase of an extended warranty, but the math doesn't work for me. One would think that, to stay in business, claims paid out must be less the premiums received. And...they must allow for the administrative cost of running the program plus a provision for profits. As a result, most insurance companies only pay out 50-75% of premiums received.
Plus, what if your Jeep doesn't break down? What if your claim is denied? What if the company goes out of business? What if you sell your Jeep earlier than you thought? In the broader retail world, extended warranties are known as the most profitable item sold at most establishments - which is not good news for the purchasers.
So...what gives? What have I been missing by automatically rejecting any form of extended warranty; on any product?
Plus, what if your Jeep doesn't break down? What if your claim is denied? What if the company goes out of business? What if you sell your Jeep earlier than you thought? In the broader retail world, extended warranties are known as the most profitable item sold at most establishments - which is not good news for the purchasers.
So...what gives? What have I been missing by automatically rejecting any form of extended warranty; on any product?
Sponsored