Quote:
Originally Posted by Freon
From a personal finance perspective, I do not recommend you insure anything that could cost you less than a few thousands dollars (i.e. you want to insure your house, the entire car, your life, your health, but not your stove or car warranty). Given you can afford a late model BMW, you should be keeping several months of expenses in an emergency fund to buffer stuff like an unexpected car breakdown, and you should be saving cash for expected maintenance like plugs, injectors, water pump, and carbon cleaning regardless.
Having an expensive BMW to repair probably means also keeping extra to cover any unexpected breakdown, but I would say you can take your average risk and add that, pooled with your other risks that you are not paying "warranty coverage" on (like your home appliances), to your emergency fund.
Insurance companies charge more than they pay out on average, obviously. You can retire richer if you manage your smaller risks on your own with savings buffers.
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I fully agree. I DID purchase the extended maintenance for my car, but it was the WRONG decision. I will never recoup the $2222 I spent on that warranty.