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When I took the project management course, I found out something very interesting about extended warranties. Statistically they have a certain percentage failure rate when a product line is first manufactured. Then it levels off for a period of time ... which is engineered! Then after that period of time the failure rate goes up significantly. The normal warranted covers that first batch of failures. The extended warranty covers any failures through that level off period. It is nothing but a cash cow for the manufacturer as they know the statistics and can rake in the cash on peoples fear. The things we don't learn in school eh!

I don't usually take the extended warranty option - they seem too expensive for what they offer. Particularly as they often have a whole bunch of caveats in the small print.

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