Originally posted by bobjames Originally posted by m8o What is with the posts here? Are people reading? You do realize you replied to someone who said they could immediately make use of the warranty to save money, that it's a waste of money?!
The conclusion is inescapable that, if warranties are being sold, they are profitable for the seller, and not the buyer. The seller is betting your item won't need fixing and you're betting it will. The seller wins. Statistics and his bank account provide evidence.
The person who wrote that he regretted not getting the warranty is now in danger of believing he should buy an extended warranty every time he buys something. He will surely lose money if he does. He played the game well and lost, now he will adopt a bad strategy and lose big.
That's true, but also true of every type of insurance. Do you have health insurance? Do you have life insurance? Car insurance? If you do, and you were a perfectly average person, you'd be better off not to, from a purely financial perspective. The point is, however, what value the insured items are to you. If - as is the case for most people - a single major car accident or a severe illness could put you in serious financial distress or even bankrupt you, then the (relatively) small price of insurance is well worth it.
If you think that - should your $900 camera break - you could easily buy a new one without second thoughts (or do without a camera altogether), then by all means don't buy an extended warranty. If you don't think you could, then probably $50 for added piece of mind is not a bad investment.
Last edited by slomojoe; 10-16-2008 at 08:36 AM.