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Extended warranties are really insurance policies against "catastrophic" mechanical failures. Insurance companies are in the business of making money; they do this by hedging their bets based on experience with claims - the art of their business is charging enough to cover their expected payout (through careful analysis of many factors) plus a profit, but keeping the premium low enough to be competitive/attractive to potential policyholders.
Of course all of this conventional wisdom has now been thrown out the window by the likes of AIG.
posted by 12.151.249...
Posts in this Thread:
- Third part warranties, galaynta , Fri, 20 Mar 2009 03:49:13
- Re: Third part warranties, galaynta , Fri, 20 Mar 2009 12:19:44
- Agree with the others, Noel, Fri, 20 Mar 2009 09:39:10
- Re: Third part warranties, No Snaab, Fri, 20 Mar 2009 08:17:06
- Re: Third part warranties, Dean, Fri, 20 Mar 2009 08:11:30
- Re: Third part warranties, Mark Anderson, Fri, 20 Mar 2009 07:57:05
- Be careful....., Herb Hirsch , Fri, 20 Mar 2009 05:51:05
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