Comments on: Insurances and Warranties – The Simple Way to Say Yea or Nay

By: UbezpieczeniaSOS

UbezpieczeniaSOS — Wed, 09 Sep 2009 13:11:42 +0000

I agree, if you have enough money to handle the consequentces, no need warranty

By: Wilson Pon

Wilson Pon — Sun, 30 Aug 2009 04:19:28 +0000

Frankly, with all the insurances, including home, personal, car, health and so on, I’m nearly getting suffocated now… It’s time for me to call it an end, as I don’t want to be binding with endless monthly payment anymore!

By: Billy

Billy — Fri, 28 Aug 2009 04:12:40 +0000

Greg, Life Insuranse shouldn’t be that expensive. It really depends which type you buy? If you got TERM INSURANCE, you’re set. All financial planner (including myself) suggested that.
Insurance/Warranty is just a piece of mind. Nobody want to make that claim! If you don’t need it, you think u’re wasting $. But when you need it, and you don’t have it. Is TOO LATE! Make sure we all protect the most valuable asset we have. Which is OUR LIFE! Remember, we only get to live ONCE!

By: MoneyNing

MoneyNing — Thu, 27 Aug 2009 21:23:39 +0000

Every time I get something and people try to sell me extended warranty, it goes something like this…

“You should get it because it’s a no-questions asked warranty. I’m not saying you should do this but some people seem to come back with a broken unit right before the warranty period expires. For some reason, they “accidentally” dropped it.”

When you buy extended warranty, you are usually covering for these scum bags as well as the sales person’s commissions.

By: MoneyNing

MoneyNing — Thu, 27 Aug 2009 21:20:58 +0000

It’s interesting that SO many people buy extended warranties even though not many people need them. For me, I rather find a car that’s reliable than to get one that I like but might be sub-par in reliability ratings.

By: MoneyNing

MoneyNing — Thu, 27 Aug 2009 21:19:09 +0000

I do this as well (have an ultra high deductible) and it’s because of the same reason. It’s worked out so far and even in the event that I have an accident, I probably have saved enough over the years to cover it.

By: MoneyNing

MoneyNing — Thu, 27 Aug 2009 21:17:40 +0000

Good for you. So many people think of insurance AFTER they need it which obviously doesn’t help.

You also bring up a good point. Sometimes, the psychological effects far outweigh the theoretical.

By: marci

marci — Thu, 27 Aug 2009 21:04:26 +0000

Agree – if you can handle the consequences, do without the warranty.

When I was self-employed, I carried a $5000 deductible on my major medical health insurance policy. Made the insurance affordable in case something “big” happened, and I could cover the little stuff myself.

Think about appliance warranties… for 3 years of insurance, you are over halfway to owning a new appliance, and as the usual lifespan of a major appliance is 10-20 years minimum, you might as well just get a new appliance if the old one goes gunny-bag More cost effective…. of course, used appliances are sometimes an even better deal than that, depending on where you get them.

By: RB @ Financial Samurai

RB @ Financial Samurai — Thu, 27 Aug 2009 18:17:29 +0000

Good topic. Think about it this way. Insurance is a business, and exists for a reason. If they weren’t profitably making money off you (they win, you lose), they would go out of business.

Don’t bother paying for a vehicle extended warranty.

By: Jeffery

Jeffery — Thu, 27 Aug 2009 15:48:45 +0000

I did the same thing. Get myself covered to a point where I can live with the consequences. With warranties though, I think most people are better off not buying them, but it’s sometimes hard to resist the sales pitches at the heat of the moment.