Lots of good lessons here, that maybe some haven't had the unfortunate experience of learning early in life or may not have realized the lesson to be learned.
Personally I learned some of these things the hard way, or maybe not by choice, would be a better descriptor.
Insurance/warranty (using these 2 terms synonymously for this purpose) companies are FOR PROFIT businesses. They hedge their profits on the risk people are willing to take. Not much different than walking into a Casino, other than the "payout" is a bit more altruistic in nature than hitting it big at the blackjack table. Combine this with our society that has mandated insurance for many things, these companies have a captive audience that includes EVERYONE in the country save for the few that are well off enough to self insure and the dregs of society who don't give a _____ and are the reason insurance laws exist in the first place.
What can we as consumers do? Just be a little smarter. Be more engaged. Try to learn something today that can help you tomorrow and not be a mush brain slug addicted to Facebookor The Voice reruns.
Once one learns a little, gets stung a little by the "insurance" or "warranty" biz, they can be a little smarter about it next time.
One objective word of wisdom, is trust no one but God and your mother! If you assume everyone else is not of the best intentions until proven otherwise, you'll be much more knowledgeable and successful in life, in general.