Bedlam wrote:
My belief is that to purchase an extended warranty, you do do not have confidence in the durability of the product you purchased. As others pointed out, companies are out there to make profit and will set the cost higher than payout. You will always be betting against "the house" odds and be better to bank that money yourself.
That’s half (or some portion) of the extended warranty buyers rationale. The bigger part, I think, is folks who don’t have confidence in themselves or the want or knowledge to do their own repairs.
And when you add up shop rates for repairs, it doesn’t take a lot to lower the “house” odds if someone is 100% bound to shop rates for all repairs.