Quote:
Originally Posted by johnlemon
Not true. It's basically like buying insurance in case something breaks.
You're paying money now to reduce out of pocket costs/headache in the future.
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That would be true if there was even a snowball's chance in hell of them paying you out the cash value plus returns for the money you put in.
I've read the terms of many of these warranties. They are all scams and they are not like insurance, insurance is a regulated industry and is still kind of a scam.
You are giving this warranty company like $5,000 up front, that could be earning in a brokerage account, to then have them come back to you later and refuse and fight every claim. Not to mention that you may not ever use the $5k in value of covered repairs. Most of the cost of running these cars is in maintenance.