Re?: Zurich vehicle service contract?

[Grant Lenahan]

Be careful — most extended warranties on consumer goods are rip-offs, no doubt.  And most extended motor warranties are a poor investment too.

But, big but.  If you get one from a reputable insurance company, sold by a dealer that will honor it, there’s real math to do.

Real insurance companies often lose money on underwriting (selling policies less payouts). They make money investing the float. Read financial reports if you doubt this.

So back to my a=original advice - calculate typical spend on repairs (not maint which is rarely covered); then look at what they cover. That’s where most get you - they cover little or make it vague enough to weasel out later.

Its fun to tell stories and bash, but if you really need to hedge your risk, the only answer is to do some reading, then math.

Grant
On Dec 28, 2013, at 7:56 PM, Jason <uberhare at gmail.com> wrote:

> Several of the used car lots I know get a cash kickback on everyone they
> sell as well!  Some guys make more on the financing kickback and warranty
> than the actual car itself.
> 
> Jason
> 
> 
> On Sat, Dec 28, 2013 at 5:42 PM, <TWFAUST at aol.com> wrote:
> 
>> 
>> As a many year subscriber to Consumer Reports, I can say that  "extended
>> service contracts" are regarded as "profit centers". Of course, if you  are
>> the 1 in 10 that actually scores on the contract you feel pretty good about
>> it. So, the question "Well punk, do you feel lucky?"
>> 
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