LeftieBiker wrote: ↑
Mon May 11, 2020 5:43 pm
You want the edge case? Ok. I bought a $500 extended warranty with my '86 Civic Si. I wasn't worried that the car would be unreliable, but that something major would go between the 3 and 5 year marks. About a year after the factory warranty ended, I got a vibration at just 55MPH. Very annoying. The dealership misdiagnosed broken tire belts (remember that 125MPH down hill run I mentioned?) as worn drive axle half-shaft assemblies, and replaced them for something like $1k. The extended warranty covered it. Make of that what you will. I buy extended warranties if they are cheap, and don't overlap with a good manufacturer warranty.
I'm not saying it can never pay off, but overall it's a bad bet. All the money I've saved over the years from not buying extended warranty protection on cars, appliances, computers, etc., will easily pay for complete replacements, much less repairs of anything I buy going forward. Extended car warranties are maybe the worst, when you consider the dealer as well as the warranty company are profiting, and in some cases a THIRD profit is being realized on the warranty purchase by whomever is financing the car loan! That's a lot of money being spread around that is not going towards repairs. So you can bet they've spent a lot of effort engineering the warranty terms to keep that money flowing.
TL;DR: Don't insure anything you can afford to lose.