Quote:
Originally Posted by khalleron
Bhartman, your 'What if' is merely that, a 'what if'. It's long odds - that's why the Best Buys make so much money off that way of thinking.
As to medical and fire insurance - surely you see that insuring a loss that can be hundreds of thousands, or even millions of dollars, at a far lower rate per loss than an EW is, makes financial sense where paying $75 to cover a $200 device for three years makes none?
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That really depends on your insurance. If you're paying $600/month on insurance (which I had to do for a while), you're paying a very high premium for something that has very low probability of happening. But if it
does happen, watch out! Most people would never need as much insurance as I had at the time, but
not having it would've been catastrophic.
In the case of the EW I had, it was approximately $192 for the 2 years. For what I paid for the device, I would've
still made out better, even at the end.
Now, if I paid $100, or even $150 for the device, I probably wouldn't have kept the EW for the entire time.
Quote:
Originally Posted by RockdaMan
Say your house costs $750,000. At the same rate you pay for an EW, it would cost $93,750.00 per year to insure it.
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But that's not an apples to apples comparison, because most people stay in their houses longer than the 2 or 3 years of your typical phone contract. If you paid $100,000/yr. to insure your house, and it gets destroyed after the third year. That's still a pretty good deal, because you just saved yourself $550,000. Obviously, you wouldn't have a 20-year policy like that on your home, but you wouldn't have one like that on an electronic device, either.
Quote:
Originally Posted by RockdaMan
Not to mention that, even with the current deflation of the housing market, your device has lost far more of its value in that time than your house has.
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That kind of depends on what device you're talking about. Some hold their value better than others.
Quote:
Originally Posted by RockdaMan
It's the odds that are the problem with EWs, not the concept of insurance itself.
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EWs are a gamble. I'm not even saying I always get them myself. For a device under a certain cost threshold, it's not worth it. But high-risk, high-cost (relative to the price of the EWs) are another story.