Again, if you're an average buyer, the car is average, and you will take average care, ... the warranty company has calculated (and they have rows of people accumulating and crunching data on this) that they can take your $2000, pay for your expected average maintenance, and still have enough of your $2000 left to pay their overhead and enough profit to make it worth their while.

To be worth the $2000, one or more of the following must be true:

They don't know enough about their business to accurately calculate the risks,

Your car is significantly worse than average,

You will take worse care of your car than average (WITHOUT VOIDING THE WARRANTY),

You are an outlier, one that doesn't fit the curve, an unusually unlucky person.

If you enjoy minor maintenance yourself, or like some of us can't stand to watch a shop botch the job for $100/hour and thus do it yourself when practical, you tip the scales further in their direction.

I'm not saying that you won't benefit, you could be that unlucky person, and if $2000 of insurance gives you piece of mind then that alone could be worth it. People do benefit, but the odds and numbers favor the insurance company as they're not a charity organization.

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Gone to the dark side

- Jeff