What are people’s thoughts on extended warranties?...
# generalr
rich-insurance-32675
04/30/2023, 2:17 AMWhat are people’s thoughts on extended warranties? We replaced our stove and microwave, and now considering getting extended warranties on both. My take is I can always call a repair man but my wife disagrees.
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mysterious-tomato-10057
04/30/2023, 2:21 AMI go back and forth on this but currently I believe that the sum of the cost of getting extended warranties for my stuff that might break is far greater than just buying new stuff when they break and I can't fix them.
mysterious-tomato-10057
04/30/2023, 2:22 AMWith few exceptions, like Cars.
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curved-toothbrush-84425
04/30/2023, 2:22 AMI'm against them. Warranties are basically insurance. The only time insurance makes sense is to prevent you from becoming destitute (or getting the care you need). This is why life, home and health insurance are worthwhile.
For a purchase under a couple thousand dollars its not worth it. The basic reason is that they only make money by collecting more than they have to pay out. For things that take you to zero thats worth the extra you will pay over a lifetime. For small(ish) purchases theres no reason to take a losing bet.
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mysterious-tomato-10057
04/30/2023, 2:22 AMI used to have a home warranty. Boy was that a piece of garbage.
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nutritious-raincoat-28876
04/30/2023, 5:32 AMI got very excited when I saw the numbers on PSE&G worry-free (monthly fee for fixing boiler, water heater, etc. when it breaks), because it seemed too good to be true. That lasted 5 seconds until it occurred to me that it can't be too good to be true - they're not planning on losing money. Took me a few minutes to find the fine-print that they won't replace the unit, only relatively cheap repairs. Then the numbers became a rip-off. Just call a repair guy if it breaks 🤷♂️
Or fix it yourself, but of course, that's not a fair comparison 😉
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thankful-raincoat-91160
04/30/2023, 7:33 PMWarranties are very profitable for the insurance companies - and that's after they cover their expenses marketing them and writing them. You are paying a significant premium - and it's much easier to keep this risk than say homeowners insurance or auto liability.
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acceptable-angle-23240
05/03/2023, 1:03 AMI've heard people sing the praises of home warranties, however, when looking into particular repairs/replacements, I figured it's not worth it. I did however get sewer line insurance based on the recommendation of my home inspector.
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mysterious-tomato-10057
05/03/2023, 1:34 AMHaha funny I also decided not to get a home warranty but got sewer backup insurance after I had a backup.
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