They are not warranties. Only the OEM can offer a warranty. They are service contracts. In many states it is illegal to advertise them as warranties. The difference may seem trivial unless you have to go to court as they are treated differently. A service contract company can go out of business one day and open the next under a new name and of course your money is gone. A few things to keep in mind is that if you are buying new the dealer pushes them because he will receive at least 50% of the money kicked back to him just for selling it which is pure profit. Research the company carefully. Look out for ones that just incorporated. Read the service contract carefully before you sign. What the bold print promises the fine print takes away. The last thing is to remember claims paid = profits down claims denied = profits up.
