Quote:
Originally Posted by khalleron
Because it takes away resources that can better be used elsewhere. It would be more financially prudent to stick that money into an emergency savings account and cover those small disasters yourself than to just fork over that money to a stranger on the long shot that something bad might happen.
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That depends on how much you're paying and when the disaster happens. Consider this scenario:
1) You paid $300 for your device (whatever it is).
2) You paid $10/mo. for the extended warranty.
3) You had something unspeakable, yet accidental, happen to your device.
4) You're two months into your ownership.
In this case, your device would be replaced free of charge. If you
hadn't bought the extended warranty, you'd be on the hook for it, in all likelihood.
Quote:
Originally Posted by khalleron
A device is not an investment - it's an expense. An investment is something that earns you money, like a bank account or stocks and bonds.
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A device
can be an investment, if it serves some business purpose.
Quote:
Originally Posted by khalleron
Once again, extended warranties are almost pure profit for the Best Buys of the world. Why pay money for something you will probably never use?
If it's 'peace of mind' you're after, then money in the bank would still be a better investment.
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Why buy fire insurance? Why not just have a savings account devoted to paying for fire damage? Why have medical insurance? Why not just have a savings account dedicated to medical expenses?
All insurance is a gamble. The insurance company is betting you'll spend more money on the insurance than you'll ever need to collect on it.
In fact, the only insurance you're
guaranteed to have a use for is life insurance. Everyone's eventually going to die.