Posted by GMAN on 02/02/07 20:08

In article <MPG.202ce9e6a8bd409d98a973@news.individual.net>, Stan Brown <the_stan_brown@fastmail.fm> wrote:
>Thu, 01 Feb 2007 13:53:46 -0600 from Aaron J. Bossig <linkvb06
>@SpammersWillBeExecuted.ptd.net>:
>
>> Which is why Rule #2 of Extended Warranties is "Always use them when
>> you have them." Lots of people buy them and then never cash them in,
>> which is of course a loss for the customer. And silly. Me, I keep the
>> paperwork on hand and am ready to call the 1-800 number as soon as
>> anything happens. As a result, I've never lost money on an extended
>> warranty.
>
>Of course you have -- every one you never had occasion to use is lost
>money.
>
>The point is that a very high percentage of what consumers pay on
>extenfded warranties is lost money. I'm not talking about the people
>who have a legitimate claim and don't pursue it, but about people who
>never have a claim. Companies pay out very little of those premiums
>in claims.
>

The majority of money we pay on health insurance is lost money but goddamn you
are very greatful when you have that heart attack and need to have bypass
surgery!!!!

>By contrast, a much smaller percentage of car insurance or
>homeowner's or life insurance is lost money; insurance companies pay
>our a much higher percentage of premiums in claims. In fact,
>sometimes they pay out more than 100%, since they use both premium
>payments and investment income to pay claims.
>

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