Extended Warranties

Interesting article in The Journal today about extended warranties


http://online.wsj.com/article/SB122057908752702305.html?mod=hps_us_whats_news



GE is selling their extended warranty business to an insurance company Assurant. Although the basic math behind an extended warranty is simple, smaller payment to avoid a theoretical larger payment later. It seems to be a hot button topic with consumers.

MY Take:

A. Never be bullied into buying a service plan. Many companies require their associates to sell a certain percentage of their products with warranties

B. NEVER buy a service plan from a company that does not have an actual service company. How will this product be fixed without actual repair people.


The math works in theory. Just insure the actual service does