[l2ridehd]

These contracts are the biggest rip off in the service business. About 25 years ago I got burned once on my very first contract. Never again. A friend I know does this. They always ask with everything they buy how much is the contract? Then they take that money and put it in a special account. If they have any work done on anything, it is paid from that account. They do the same thing with car insurance, getting the highest deductible available. Add that difference to the same account. About 12 years ago they had enough to move it into a mutual fund. They still pay any repairs or insurance repairs from there. Today the fund is just a little over $12,000. I doubt they will ever spend it all. Most things run for several years past the warranty with no repairs.

Today I do buy one service contract. It is on my oil furnace in Virginia. I do that because it is 25 years old and needs to be replaced. However I have been doing that for 5 years now and I would have been better off just paying the service as I needed it.