Who reads the Fine Print? Smart buyers do!
Ask for all the details of the coverage in your extended warranty plan. If there are a large number of exclusions, the red lights must blink in your head, meaning someone’s out to con you. Why pay out of your pocket for certain excluded repairs and "damage”? this is easier said than done, as car insurance companies have mastered the art of deception and revel in fine print but once they know you are serious, a lot of good can accrue to you.
Watch out - the Retailers are making profits on a gullible you
The retailers make up to 50% profits if they are able to convince you to buy both the electronic product, and the extended warranty insurance. That’s the way the cookie crumbles. Which retailer would want to pass up an opportunity to milk a starry eyed buyer of a jazzy gizmo that gets pride of place in your new loaded car?
In Pennsylvania and New Jersey, there’s a new fangled way of making a complete fool of you. The company rep will tell you that you can buy "limited tort" coverage. But do you know what Limited tort means? What it implies is that even if the other guy is at fault, you generally cannot collect payment for your "hospitalization or home imprisonment or loss of income from missing office". So you will suffer for no fault of yours. You will earn a lot of sympathy but that won’t help pay the bills. The verdict – full tort is better than limited tort.