Quote:
Originally Posted by extrashaky
You keep saying you understand the purpose of insurance, but then you say something like this that demonstrates clearly that you don't. .
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I think you are misunderstanding my point.
I agree with you that insurance is to manage risk. My point is that you also have to weigh that against the cost versus the benefit you get IF you need the insurance.
I insure my home for less that 0.5% of its cost annually because that is a reasonable price to pay for something I cannot self insure, it would be a catastrophic loss. However, I don't own an "extended house warranty" choosing to self-insure through those issues.
Same with my car, I have auto insurance to cover the vehicle but chose to self-insure through repairs based on nearly 40 years of car ownership experience.
If you see value of an extended warranty, then good for you, and you should purchase it. I do not, and don't
Again, we both understand how it works, we just view its value differently.