Extended Warranties
03-24-2017, 01:20 AM
#17
Real life example: you can literally risk pool with yourself! Put away they money you'd spend on both policies and you can use it for anything that goes wrong and likely have a bunch left over!
03-24-2017, 05:39 AM
#18
Rennlist Member
So insurance works by risk pooling right? Multiple people pay in more than they're expected to get back because of the small chance they avoid getting stuck with a huge bill if something goes wrong.
Real life example: you can literally risk pool with yourself! Put away they money you'd spend on both policies and you can use it for anything that goes wrong and likely have a bunch left over!
Real life example: you can literally risk pool with yourself! Put away they money you'd spend on both policies and you can use it for anything that goes wrong and likely have a bunch left over!
Warranty companies are profitable for a reason - you are paying a premium over the actual expected risk of mechanical failure parts / labor. And when purchasing from a dealer they are marking it up a few hundred dollars or more. I like to self-insure when possible unless the insurance is too cheap to turn down.
Does CNA or any other 3rd party warranty pay the dealer directly? A few local mechanics I know loathe having to make a claim through some of these 3rd party warranties and say its like pulling teeth - especially on a costly repair.