This type of insurance is sort of like gambling; the insurer is betting on you not needing it, and the insuree is betting on if he does need it, he has it.
If you have to use it, the insurer loses; if you do not use it, you loose!
Car repair insurance is based on the Pool theory; the bigger the pool (payees) and the less insurees using the funds, the more profit for the insurance company! I personally am not fond of insurance companies as they try every trick in the book to try and keep from paying out funds if you have to file a claim and then they will want to drop your coverage if you do!
I have witnessed service managers catch MUCH grief and spend exorbitant amounts of time on the phone dealing with an insurance company when trying to get an insurer to cover a legitimate claim on a vehicle!!!
Insurance companies are basically legalized Ponzi Schemes!
As olypopper stated, most on here are our own warranty stations; if I break it, I fix it, if it breaks on its own, I still fix it!!!
