Like Casinos, sometimes people clean up on a Warranty Contract,
but the odds favor the house.
I don’t like to gamble against myself, so I’m not particularly fond of of extended warranty contracts.
Such contracts do offer benefits, like a little peace of mind. They can also help you even out the expenses of car repairs – by adding to the monthly car payment of the car or through the checks you mail the warranty company each month.
You should know that a salesperson might “inadvertently” give you the impression that the car will be covered “bumper to bumper”, but be advised that most every contract has listed coverages and has exclusions beyond the deductable, often thinks like the fluids required to complete the repair or hoses and mounts and charges for things like environmental fees and shop supplies.
It seems to me that the smart money is to set aside what you would have spent on the policy and then – invest it instead of investing in someone else. Let it grow ‘til you need it.
The people you trust with your car care should be expected to help you, the best that they can, to predict both short term and long term repair and maintenance expenses.
Oh, and unlike casinos, you never get to say “at least we had some fun” when paying for a warranty contract!