A few things to keep in mind about Extended Warranties---
1) They are not warranties at all. They're service contracts or mechanical failure insurance policies.
2) As with any insurance policy, the financial soundness of the underwriter is critical. I know of two automobile 'extended warranty' companies in my area who've gone belly-up. In most cases, the purchasers were left with nothing. I one case, the dealership that sold them the policy honored it at their location only.
3) None of us ever expect to get our money back from insurance. The purpose is to avoid catastrophic losses. It gives peace of mind.
4) Before you pay, get a copy of the contract and read the fine print. Insist on it. Understand what they cover and what they don't cover. Understand what maintenance requirements you have and what paperwork you need to keep to be able to prove you did the maintenance.
5) Who can do the work? Where do you get authorization?
6) The price is totally negotiable. Do haggle.
Ken
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