The headline says exactly what peddlers of things you don’t need to buy don’t want you to read. Or do.
One rarely saves money by spending it. There are two examples that make the case, the first being extended warranties such as those peddled (endlessly) by Endurance and Car Shield – to name two of the most aggressive peddlers of these fear-based insecurity blankets.
Many people are understandably terrified of being the owner of an out-of-warranty vehicle that needs a repair, in part because they don’t know much about vehicles and in part because because they know how much it can cost to repair them when something fails that’s no longer covered by the original (manufacturer’s) warranty. The extended warranty peddlers play remorselessly on this fear, peddling the psychological comfort that what they’re selling will cover the cost of fixing whatever broke.
There are a couple of points to consider, the first being that the extended warranty may not cover the cost of the repair. This is common with the shadier of the extended (aftermarket) extended warranties that are not endorsed by or backed by the vehicle’s manufacturer or the car dealership you bought the vehicle from. It ought to trigger some red flags when you hear them say they’ll “cover” any car – irrespective of its age or mileage. This is of a piece with those ads that say you can get “quality” health insurance with no medical exam, even if you’re 85 years old.
Sure you can. The question is whether they’ll pay out anything after you’ve paid in.
That sketchy extended warranty isn’t likely to. There will be all kinds of exclusions and limitations buried within the fine print you probably didn’t read (which is why it’s fine print; the idea is that they don’t want you to read it). When you try to get the issuer to pay for the repair you thought would be “covered” – it isn’t.
What is styled “health insurance” – our second example – operates similarly. The fear many people have that they’ll get sick and won’t have the money to pay for the care they need is what sells health insurance. It is a silly (and misleading) term , in the first place – because nothing can insure health. It is something you have today that you may not have tomorrow. Dread of the latter is what sells the insurance. More finely, dread that the cost of treatment will be so high as to bankrupt you – if you haven’t got “coverage.” Of course, it is well-known that even when people have paid for this “coverage,” it often does not cover these costs. Very much of a piece with the shady extended warranties. Both are money-making (not paying) operations. Many people fall for the bear trap that the companies that make money selling “coverage” are something like benevolent aid societies when in fact they are predatory wealth extraction schemes.
So, what to do? Well, how about saving some money – rather than spending it? Then, you’ll have some money, in the event you need to spend it – including on other things besides car repairs (and medical bills). The typical cost of an aftermarket extended warranty is about $140 per month. That works out to spending about $1,700 annually. If you spend that much for say three years, you’ll have spent about $5,000 on the “coverage.” How likely is it that, during those three years, your vehicle will need a $5,000 repair? It is possible, certainly. Just as it is possible you might have a crippling stroke tomorrow.
But is it likely?
The answer is – the odds are – probably not. Especially if you take good care of your vehicle (as you hopefully try to take good care of your body). You may have to deal with various repair costs over those three years, but will they amount to more than what you paid for the “coverage”?
If not, you haven’t saved any money, have you?
Even today, shy of a catastrophic failure (e.g., your vehicle’s transmission has to be replaced) it is unlikely you will face a repair that costs $5,000 over the next three years or even five. Imagine if, rather than having paid $140 per month for the psychological security of “coverage,” you put $140 per month aside for just-in-case. After three years, you’d have roughly $5k in a rainy day fund – probably sufficient to pay cash for most repair needs that come up, leaving you net positive at the end of three years. Possibly very much in the net positive, if only minor repairs are needed during those years. Unlike the warranty coverage, that $5k will still be there, too, in the event you need it going forward. The math gets better the longer you set aside some money every month. After five years of setting aside a sum equal to the cost of a typical extended warranty – $140 per month – you will have about $8,500 available, which will pay for even a catastrophic repair, such as having to buy a new/rebuilt transmission.
Yes, of course, you might have to deal with a repair cost that is more than you’ve saved. But the other option is the certainty of paying a small fortune for “coverage” that probably won’t cover anything. Keep in mind that the odds of a transmission failure or similar catastrophe happening are statistically low, which means the odds are high you’ll be paying for psychological security. Keep in mind also that the odds are high the warranty-issuer will decline to cover the cost anyhow.
It’s a little scary to think of it this way, but that is precisely what the extended warranty and health insurance peddlers are counting on you to not think about.
. . .
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Saving ..What is?,
I remember getting a call from the payroll mgr at the “Consulting /contract” co I started working for 2007….
Conversation commences..
“Agent Orange, I can’t seem to reconcile your paystub…
Heck I can help….
I put 40% of my gross pay into that IRA thing….
Oh …Okay…”?????!!!
Boy how anti -american is that?
Some save for a rainy day.. some save for a monsoon season….
The few, the proud, the Smart!!! save for an ICE AGE….
40% ? Wow. You maybe be wealthy rich man now? You ever read those articles about how the debt-stricken goobermints will take the 401K and trade it for 200 yr. Bonds? Or, inflate, inflate, to da moon til Da Dollar is 10 Cents?
…Just thinking out loud.
Well Spartan kid,
As a retired CPA, I can assure you I KNOW how to manage money..
With respect to “inflate”? Fuk it, Run it…
I’ll spend and have spent my excess cash Blowing off on one-way tickets to assorted Continents for open ended adventures which happened to be some of the seminal events in my life.
My “Prime Directive” is to see kool stuff globally…. and I’m succeeding quite spectacularly (in my opinion)…..
With respect to “Foreclosing on my travel experiences”…Ha, ha ha…your actually funny.Go for it!
Any contractor who has dealt with Superstorm damage will tell you those companies don’t want to pay shit after people spent years paying “insurance”. They’ll bury you in legalese and jew word salad till you exhaust yourself and give the fuck up. Look at pet insurance. Next will be insurance insurance for when you go broke paying all the insurance. We no longer resemble Western Civilization….more like a kazarian khaganate. 0 trust, no honor, integrity or accountability, fucking none.
Well-said, Celtic –
I’m glad you brought up the examples. I’m not far away from the NC part of the recent (about two years ago) hurricane disaster area. Lots of hard stories about people who had “coverage” that didn’t cover the loss of their homes. The sooner people realize you can trust no one except those you know you can trust, the better.
Isn’t, ‘trust’ the foundation of a civilization? Or, some such thing?
…It’s, eroded?
Things like insurance and warranties are situational. I’m not talking about people who think they are cursed with bad luck, but if that’s really a thing, that would make sense. Like others point out, if you live paycheck to paycheck, and have no savings or credit, and will not be able to pay for that transmission repair, the utility of having a working vehicle is higher than $20 a month. (Obviously, if you have no savings, it’s unlikely that you would reliably put that $20 per month aside. If you think you can manage the self-control, though, self-insuring is a good plan over the long haul.)
I should have said, “is likely higher than $20 per month.” If you have no savings and live paycheck to paycheck and have a car, odds are good the car is essential to your making a living.
Hi Steve,
Good luck finding an extended warranty for $20/month that’s worth more than used toilet paper.
I know of someone who worked in the insurance industry, 1st and Main thing, of all, deny Every claim.
Every time.
…Make ’em work like hell.
That’s, The Business Plan.
Absolutely, Helot –
They – the insurance mafia – know that wearing people down with endless rigmarole is the way to make a buck. Not paying out on claims.
The best insurance against major vehicle failure is to purchase a 1990-2010 vehicle and maintain it.
What’s that word? Kaveet? “Unless, you’re in The Northland.”.
1990 – 2010 are about all rusted UP and gone here, unless you can find the exception to, The Rule.
Even IF, you find one (and pay out the ass for it) better Not drive it in Winter. The Road-Salt-Boogieman will eat your Precious right quick.
They definitely play on the fear factor, probably likely to work on people with little knowledge of cars/mechanical stuff. I regularly get mail (mostly addressed to my wife, guess they figure it’s easier to panic women) with hair-on-fire titles like “YOUR WARRANTY IS ABOUT TO EXPIRE!” Too bad the warranty on my 23 year old vehicle expired decades ago, they even list a car model I supposedly own, butis not even close. Good luck with that, go find a sucker somewhere else.
Did you know that Americans who are over 30 are no longer allowed to buy Catastrophic Health Insurance unless they qualify for a “hardship/affordability exemption”?
AI: Those over 30 must qualify for a hardship or affordability exemption to enroll. While adults under 30 automatically qualify, new rules for 2026 have significantly expanded access for those age 30 and older.
Eligibility Categories for 2026Age-Based (Automatic): Anyone under age 30 when the plan year begins is eligible without any extra paperwork.
Income-Based (2026 Expansion): Starting in 2026, you may automatically qualify for a hardship exemption if you do not qualify for premium tax credits (subsidies) due to your income level. This typically includes: Incomes below 100% of the federal poverty level (FPL).Incomes above 400% of the FPL. Incomes above 250% of the FPL for those ineligible for cost-sharing reductions.
Affordability Exemption: Available if the lowest-cost Marketplace or employer-sponsored coverage available to you would cost more than 8.05% of your household income in 2026.
Personal Hardships: Specific difficult circumstances may also qualify you, including: Homelessness or eviction; Filing for bankruptcy; Domestic violence; Unpaid medical debt.
Catastrophic Plans. These plans are designed to protect you from worst-case medical scenarios while keeping monthly premiums low.
Features [I think Maternity care is covered]: (1) Preventive Care: Standard preventive services (e.g., vaccines, screenings) are covered at no cost, even before the deductible is met. (2) Primary Care: Plans must cover at least three primary care visits per year before you reach the deductible. (3) Full Coverage: Once the deductible is reached, the insurance provider typically pays 100% of all covered in-network essential health benefits for the remainder of the year. (4) HSA Compatibility: Starting in 2026, catastrophic plans are treated as HSA-compatible, allowing enrollees to contribute to a Health Savings Account.
Monthly Premium: Generally the lowest available [Individual $286 PER MONTH 21 yr old FOR 3 DR VISITS!; $325/30 yr old; $365/40 yr old; $845.82/50 yr old; $1,284/60 yr old; Family: Family of 3 (two adults and a child): ~$960/month. Family of 2 (older adults, age 50s–60s): ~$1,600 to $1,750/month.]
Deductible Standardized at $10,600 for individual/$21,200 for family
Pre-Deductible Care Covers 3 primary care visits and most preventive care at no cost
Tax Credits, Cannot be purchased using premium tax credits (subsidies)
____________________________________________
PRIOR TO OBAMACARE (2010): (AI) Prior to 2010, the individual market was largely unregulated, allowing insurers to set premiums based on health status and age.Monthly Premiums: Healthy young adults could often find bare-bones coverage for $50 to $100 per month.Deductibles: These plans typically featured very high deductibles, sometimes ranging from $10,000 to $25,000.Coverage Gaps: These plans often excluded essential services like maternity care, mental health, and prescription drugs to keep costs low.
Hi AJC,
Blanket statement, but I think it’s accurate: All insurance – as it exists today – is a scam. Almost everyone would be better off without any “coverage.”
I think racket is a better word then scam… for insurance of any kind.
Eric,
You and I have a difference of opinion on this.
One example:
Architect of my acquaintance cancelled his homeowner’s insurance when he paid off the VA mortgage on his own home. Next winter was a very wet one. The hillside saturated, and his home slid down the mountain, a total loss. The HO policy would have covered the loss.
Another example:
I carry “full coverage” (i.e. “collision”) on my 1989 F150, even though I bought it for cash. Why? Because State Farm will pay me promptly, and go fight the other guy’s insurer for the payout. “Headache medicine,” IOW. In case the other guy’s insurer is a public agency, it may be a rather severe headache. BTDT in 1989. Allstate paid me, and fought County of Riverside for harm caused by its employee.
I *do* agree with you that the concept of insurance is routinely abused in our society, and used to conceal actual costs from the end user. Third party payment to cover routine expenses is *NOT* insurance. It is a scam.
To my knowledge, no company is offering “grocery insurance.” Yet.
There are, however, various other hare-brained schemes afoot, such as this one:
https://www.youtube.com/watch?v=5rEbzGWKCQY
MOST homeowner’s policies do not cover soil erosion and landslides, so he might have been SOL anyway unless he had a specific rider for it.
@ X,
Thank you for pointing that out.
Some folks with homes perched on coastal area cliffs have discovered that, to their dismay. Some were covered, others were not. Once again, RTFP.
Hi Adi,
If your home is at significant risk of a flood or a mud slide – or tornado, etc. – then I see your point. But if not? What are the odds of a major/catastrophic thing happening? Probably very low. The cost, meanwhile, of home insurance is extortionate. Most people are paying thousands annually. If you pay say $2k annually, over 20 years that is $40,000 (not counting the lost opportunity cost). How likely is it that you’ll have to deal with a $40k problem – again, assuming you do not live in a flood plain, or where tornadoes are a serious threat?
Probably less than the odds you’ll have a stroke attack over the same time span.
I feel the same as regards car insurance. You cannot eliminate all risk, obviously. But you can reduce it greatly. I would probably willingly pay say $200 annually for a liability-only policy that covers damage I might cause to someone else’s vehicle. Anything above $200 annually is more than I would willingly pay – because I the cost isn’t worth it to me because the chances that I will be the cause of an accident that results in damage to someone else’s vehicle are very low (in support of this assertion, I submit as evidence decades of accident-free driving).
Health insurance is the least defensible. I understand why there is sympathy for Luigi. Or – rather – I understand why there is not much sympathy for his victim.
Hi, Eric,
>Health insurance is the least defensible.
Yep. [nodding assent]
And that is because (at least IMO) it is the most frequently abused.
As you’ve stated, there really is no such thing as “health” insurance. Third party payment for routine expenses is *not* insurance; it is a form of deception, which conceals the true cost of the service from its consumer.
To understand how we got where we are today, you have to go back to WWII, and understand that Go’vt. meddling in the free market via wage and price controls is what created so-called “fringe benefits.”
RE: auto risk
You can certainly control your own behavior, but not that of other drivers. I, too, have an excellent driving record, but have been the victim of collisions caused by the actions of others, over which I had no control. So, what do you do then?
Risk tolerance is, or at least should be, at least in part a personal decision, but I do not object to the law at least giving lip service to the idea that everyone whose behavior has the potential to cause harm should show evidence of financial responsibility.
That said, there will always be those who do not, and for that eventuality we have UM (uninsured motorist) coverage, which in an “ideal” world would not even be necessary. Unfortunately, that is not the world where we live.
I expect you and I could have a long, friendly and mutually productive discussion on this topic (maybe over a pint or several), but that will have to wait for another time. 🙂
Best regards,
Adi
Roger all that, Adi!
Meanwhile, I am futzing with a minor annoyance. I got a replacement toggle switch for my Trans-Am’s electric rear defroster. The new part has four prongs; the factory harness has three (female) fittings. Argh! Apparently, there was a change mid-year. Now I have to figure out whether I can use the new switch with the factory harness. But it gives me something to do to take my mind off the world…
I guarantee you Luigi is responsible for killing far fewer people than any healthcare CEO.
Not saying it was right, or justified…just saying theres an argument with a plausibility value greater than zero. Which is more than a typical murderer.
I agree, Publius –
These health care/insurance cartels are extractive, inhuman obscenities that bleed people in desperate circumstances of their last pennies. If Dickens were alive to write about them, he could reboot some of his best novels with “insurance” as the premise/bad guy.
“I would probably willingly pay say $200 annually for a liability-only policy that covers damage I might cause to someone else’s vehicle.”
For most people, the property damage is a tiny fraction of the overall liability. The real cost is the “Larry H. Parker got me $14.9 million.” Those awards are not dischargeable.
That is why you need to own absolutely *NOTHING*
Not even Larry H. Parker can squeeze blood from a rock.
>property damage
Take a drive through an upscale community (here in SoCal, let’s say Newport Beach, a.k.a. New Porsche Beach) and start toting up the cost of damaging the surrounding vehicles. We can start with the Lamborghini, and work “downhill” from there..
I had “Bugatti” in that post, and thought, “Nah. Too much of a digression”. But, yeah, I agree. That’s one of the things I think maybe does need a legislated cap, kind of like FDIC. You were driving around in a $15 mil McLaren? Pretty stupid. The cap on property damage is $100k. Hope you have a rider on your own policy to make you whole for the amount over the cap.
Either that or we need to be able to hire Vinnie and Guido to go over and ‘splain it to the idiot’s kneecaps.
>Either that or we need to be able to hire Vinnie and Guido
LOL. 🙂
Vinnie and Guido are honorable men. Quite unlike cops and insurance executives.
Of course, making a claim on Vinnie and Guido’s insurance had better be a legit one.
That’s true, Steve –
I agree with Adi about owning nothing (legally). It is the smart move. That said, I’m not going to live my life worrying about getting sued – and buying “coverage” for the eventuality. It becomes a kind of neurosis. And it bleeds one white, too.
Agree in principle Eric. Maybe when cars and things were analog and we could fix them ourselves vs all this proprietary electronic crap.
BTW we designed and sell analog equipment which is twice the price of crap, and 10-25% of people understand the value.
Im guessing 200yrs ago small communities pooled their $ for major loss?
Best bet:
DO NOT OWN ANYTHING.
If you own anything in your own name, you are a fool, and ripe for the plucking.
https://www.law.cornell.edu/wex/inter_vivos_trust
I was advised by my asset protection attorney to transfer *all* significant assets to the trust, and *always* take title, in future, in the name of the trust.
That includes real property (obviously), securities, and significant chattels such as automobiles, etc. So sue me. I don’t own a damned thing. Can’t squeeze blood from a rock.
Yeah, but now that the strategy is working its way down into the middle class, we’ll see how long it lasts. Clawback has already happened in the case of criminal activity, and I suspect negligence is not far behind.
When the House passed the American Health Care Act (AHCA) in May 2017, 20 Republicans voted against the legislation–some because they supported the bill. Most who opposed were defeated or retired in Jan 2019. Andy Biggs, w/endorsement of trump but in a competitive primary is running for AZ Governor, and Massie was primaried. So there are only two left in Congress David Joyce and Brian Fitzpatrick (if they don’t lose in November).
David Joyce, RC, is a moderate Republican who supports Israel and gets legislation passed for them: Joyce’s Israel Security Assistance Support Act Passes House, May 16, 2024; Joyce Joins Resolution Expressing Support for Israel, Oct 10, 2023. Per AI he, “recently voted to extend the ACA’s Advanced Premium Tax Credits to prevent sudden premium spikes for his constituents.”
AI: “Congressman Brian Fitzpatrick (R-PA) is a moderate Republican who supports key aspects of the Affordable Care Act (ACA), particularly its expanded premium subsidies. He has actively worked across the aisle to prevent health insurance premium spikes and expand healthcare coverage.” AI: “Congressman Brian Fitzpatrick (PA-01) is a staunch supporter of the U.S.–Israel alliance and serves as a co-chair of the House Bipartisan Task Force for Combating Antisemitism. He consistently advocates for joint defense initiatives, military assistance, and confronting the Iranian regime.” [$924,170 from AIPAC]
After recent War Powers Iran vote, Trump is now threatening him too [53 yr old never married dating since 2021, engaged FA25, RC]:
5.21.26 “Trump Slammed Over ‘Morally Repulsive’ Threat To Reporter’s Fiancé. Jacqui Heinrich’s fiancé, Rep. Brian Fitzpatrick, would later hit the president with “bad news” over his Justice Department’s “Anti-Weaponization Fund.”
“He then turned back toward Heinrich, “I don’t know what’s with him. You better ask what’s with him.” (Note: Heinrich [maybe she’s his FUX US AIPAC handler] and Fitzpatrick are engaged, a Fox News spokesperson told The Philadelphia Inquirer.)
“The president continued to drone on, “He likes voting against Trump. You know what happens with that? It doesn’t work out well.”
“The threat arrives less than a week after Fitzpatrick, a moderate Republican in a district that went for Kamala Harris in 2024, joined Reps. Thomas Massie (R-Ky.) and Tom Barrett (R-Mich.) in backing a failed effort to end Trump’s unpopular Iran war by requiring that he seek congressional authorization.”
https://www.huffpost.com/entry/trump-threat-fox-news-jacqui-heinrich-fiance-brian-fitzpatrick_n_6a0ee02fe4b084c012e3624e
3.7.2017 “GOP Obamacare repeal ‘stinking pile of garbage’ written by the ‘insurance lobby,’ and it ‘will fail. Thomas Massie does not mince words. For more than six years, Republicans have promised to repeal Obamacare and after reviewing the long-awaited replacement package for a few hours, the Kentucky libertarian wasn’t impressed. Massie thinks “it’s a stinking pile of garbage.”
“Many of the provisions within the bill that he finds so objectionable, Massie explained, aren’t bugs. They’re crony features of a product designed by, and for the benefit of, the insurance industry.
“Real reform won’t happen, Massie argued during a recent meeting of the Washington Examiner’s editorial board, unless Republicans push special interest out of the process. “I think the [American Healthcare Act] was written by the same people that wrote Obamacare,” he said. “That’s why it looks so similar. It was the insurance lobby.”
“The Republican base started complaining about the repeal almost as soon as House Speaker Ryan unveiled the plan. It preserves many of Obamacare’s provisions, such as the regulations, penalties and Medicaid expansion, while creating a system of refundable tax credits for the purchase of health insurance.
“Massie balks at that last provision, describing it as a sort of new corporate entitlement. “I’ve been wondering what the payment mechanism is,” he asked. “But I found out today that the check goes straight to the insurance company. They’re the ones that get a monthly check to subsidize health insurance for almost everybody.” [Google Massie Affordable Care Act – article is on his USG website]
_________________
“Rep. Massie’s Statement on American Health Care Act “No” Vote. As recently as a year ago, Republicans argued that mandates were unconstitutional, bailouts were immoral, and subsidies would bankrupt our country. Today, however, the House voted for a healthcare bill that makes these objectionable measures permanent.
“The former Democrat Speaker of the House was rightfully derided for imploring Members to vote for a healthcare bill to “find out what was in it.” Yet today, we voted on a healthcare bill for which the text was available only a few hours before the vote. In fact, the Congressional Budget Office had no time to even provide Congress with a preliminary estimate of the full cost of this bill.
“By repealing a small number of Obamacare mandates, while leaving others in place, this bill runs the risk of destroying what remains of the individual health insurance market. The option in this bill that allows States to apply for waivers from some Obamacare mandates is well-intentioned. However, it falls far short of our promise to repeal Obamacare. There also remains the risk that State legislatures, like our federal legislature, are unable to withstand the political pressure from lobbyists who defend Obamacare, and the pressure from those who receive Obamacare’s welfare handouts.
“This bill should have included measures that allow Americans to take charge of their own healthcare and get the government out of the way. These measures include allowing the deduction of health insurance costs from income taxes, giving everyone the ability to purchase insurance across state lines, and allowing individuals to band together through any organization to purchase insurance.
“In weighing my vote, I heeded the wise advice that “one should not let the perfect be the enemy of the good.” If this bill becomes law, it could result in worse outcomes, fewer options, and higher prices for Kentuckians who seek health care. In summary, I voted against this bill not because it’s imperfect, but because it’s not good.”
https://massie.house.gov/news/documentsingle.aspx?DocumentID=395249
ALL these warranty/insurance scams Eric Peters writes about are designed to rip off poor, vulnerable marks. They bombard and confuse vulnerable populations of blacks, hispanics, illiterate and elderly with pressure sales, trick telemarketing and mailings designed to look like official government notices. Some states are going after them. Unlike the Republicans with their health insurance ‘reform’ scam that uses the federal government to benefit themselves and lobbyists while ripping off the American people.
You still can get something that is the same as catastrophic coverage, but isn’t called that. It is NOT insurance. Check out Medi-Share or one of the hundred or so similar operations. They all have somewhat different rules. I opted into maternity coverage. Not that a 60+ YO couple is likely to have any kids, particularly after the hysterectomy, but I want to help young people who want to start a family.
“There will be all kinds of exclusions and limitations buried within the fine print you probably didn’t read”
I have always been the type who will try to read what I am agreeing to before signing if I can.
However, just because you READ something doesn’t mean you UNDERSTAND it. I am hardly uneducated (I hold a couple of postgraduate degrees) but I am not an attorney, either. Most of that stuff is written in what might as well be a foreign language, and it is written by attorneys on behalf of the company so that they can screw you at will.
Even when you think you understand the language of a given document, it’s not enough. You need to know how courts and bureaucracies will interpret it in the real world. So in many instances knowing black-letter law and contracts is less important then knowing precedents and procedures.
And it’s not just warranties, it’s all types of contracts and even (especially) legislation… and even the Constitution itself.
The plain language of the Constitution says that Congress shall declare war, but guess what? In the real world Congress hasn’t done so since 1941, and imperial presidents have been doing it unilaterally for decades.
The pain language of the Constitution also says that the right to keep and bear arms “shall not be infringed,” but Mommy Spanberger couldn’t give a fuck about that, and she has legions of Talmudic lawyers at her disposal to tell you why those words don’t actually mean what they say.
Extended car warranties are like medical insurance.
For example if you take that monthly payment and use it for periodic maintenance the car is much, much less likely to have a catastrophic issue. Not only due to the actual maintenance but also you or your (presumably) trusted mechanic regularly checking on it almost always clues you to a new sound, an off fluid color, an out of spec part so you can deal with a small issue now rather than get blindsided by a big one later.
With your health you get a lot more benefit spending $300 a month at a gym and buying real food than dropping the same on insurance to fix chronically not exercising and eating junk that is the inevitable.
Americans like to kick the can down the road. Here’s my credit card, gimme that pill to fix my health, doc.
Amen, Anon!
My gym membership and generally good habits are my “health insurance.” So far, it has saved me literally six figures – what I would have spent on “coverage” since I entered the workforce – and here I am today with no health issues other than stiff shoulders. I don’t even need reading glasses yet.
Yep, I agree that keeping yourself out of their clutches is the best policy.
The real problem is at the end when you encounter the nursing home/hospital/doctor cartel designed to drain every last drop of value from your carcass and estate prior to the final exit.
I personally know someone who decided, after a fatal diagnosis which would take 6 months or so to kill him (which is plenty of time to drain your accounts), to off himself. His final words that day: “The hospital is not going to get my farm”
Family/Friends/Random Strangers: Why do you ride fast motorcycles and fly small airplanes? Isn’t that risky? Aren’t you afraid of dying?
Me: I would rather die in a plane or motorcycle accident versus taking four years to die cautiously with a tube up my nose in a nursing home. (my answer is a paraphrase of a comment that I read on the internet many years ago and it really struck a chord with me)
Anon
>6 months or so to kill him (which is plenty of time to drain your accounts)
Doesn’t take nearly that long, unless you are “Rockefeller rich.”
Based on my personal experience, the “money catheters” at the local “portals to Hell” such as Riverside Criminal Hospital:
https://www.riversidecommunityhospital.com
flow ~ $100/minute.
I can show you the figures, if you care to see them.
No doubt higher tech, higher efficiency MEDs (Money Extraction Devices) are under development by the Doctor-Gods and their acolytes.
AH,
“Money Catheters” – I am so stealing that.
And yes, I would like to see the data and how it converts into the drain rate per minute.
Thanks
Anon
>“Money Catheters” – I am so stealing that
Be my guest. 🙂
You are welcome to MEDs (Money Extraction Devices), and
Riverside Criminal Hospital, as well.
>And yes, I would like to see the data
For a detailed accounting, we would have to meet face to face, but I can give you examples.
Example 1:
In 2014, I was involved in a minor auto accident, in which I lost consciousness, but was not seriously injured. I was transported by ambulance, unconscious, to Riverside Criminal Hospital*. The charge to roll me through the door (no “treatment” yet) was $34,000. Attending physician’s written notes indicated no apparent injuries and no patient complaints. I was subjected to (5) CT scans @ ~$10,000 per, all based on fraudulent allegations of “pain” which did not exist. Total bill for ~18 hours exceeded $100,000.
State Farm, my auto insurer, paid policy limit of $100,000, leaving me on the hook for the difference.
——
*Riverside Criminal Hospital is part of Hospital Corporation of America, for which a $2,000,000,000 fine for defrauding Medicare is just an ordinary cost of business. The CEO at the time, Rick Scott, received a $300,000,000 severance bonus, and went on to become Governor of Florida.
5 CT scans? Not only a money grab, but a health hazard, as CT scans give you a large dose of ionizing radiation.
100 percent, Anon –
My mom spent the last two years of her life in a “memory care” home for people with dementia. I am glad she had no idea where she was. The place was depressing; a kind of waiting room for death. Far better to go out fast and cheap. That is my plan.
I’ve been buying ‘factory’ extended warranties for 20yrs, ever since they started putting electronic everything in them. I buy for as long as I will own it, usually 50-75k miles. They have cost me $1-3k each, and most refund the time not used. I’d say I’ve broken even or a little +/-. It is very worry free to just drop it off and say call me when it’s fixed. Some give loaner cars for even less hassle. It helps to build a relationship w a dealer.
The worst one’s, for them, wad a new engine, and a rebuilt one. So I’m probably way positive.
Wow, re: “I’ve been buying ‘factory’ extended warranties for 20yrs,”
I sometimes wondered who bought that crap.
40 yrs for me, none of that. Paid for a rebuilt transmission once, $3,000. – I – rebuilt one motor. Some rotors and brake pads, and a sensor here and there, but it wasn’t a bill to pay, regular-like.
You say you’ve broken even or a little +/-.
I really doubt that.
What’s this even mean?: “They have cost me $1-3k each, and most refund the time not used.”?
I wouldn’t even want to spend the time fucking with that.
H Helot,
Everyone’s situation is different. I suppose if you are affluent enough to be able to afford to spend a couple thousand on an extended warranty, then maybe the peace of mind is worth it. But many do not have the extra cash to spend on “what if?” and so run the “risk.” I put the latter within air fingers quote marks because unless you’re the owner of a high miles older vehicle, the risk is pretty small (of a catastrophic problem) and if you are the owner of a high miles older vehicle, good luck getting a warranty to “cover” any such repair.
Moron buys AFLAC to screw itself twice.
If you’re truly over a barrel and cannot pay for an unanticipated repair, most shops have deals with so-called private credit companies. These are private investors who pool money into a fund and set up shop in much the same way as the old loan sharks. They have become the 2020’s equivalent of payday loans in that they’ll extend credit accounts to anyone with a pulse, but (for now) offer fairly good financing, from zero percent for 18-24 months or some interest rate below credit cards if you don’t have a great credit score. How long these companies last before they stop getting that monthly payment is hard to say, a few funds have got out over there skis but so far none have “asked” for a bailout. Either way, it is an option other than insurance.
Maintaining a home equity line of credit, while expensive, is another option if you don’t have fast access to cash. Again, no investment advisor would recommend such a thing, but if you need money there’s a way to get it.
No matter what you’re going to be trading short term pain for long term pain.
Tack auto tranny grift onto mortgage cuz too lazy to change fluid : moron.
Shit hits the fan you gotta do what you gotta do. I’m not saying I’d do it, but it’s an option that’s probably better than paying for a denial of coverage down the road.
As for me personally, I keep $7,000 in a rainy day account and a few pieces of scrip in my gun safe. Because as nice as it is to own metal, most people aren’t going to want that silver until the dollar no longer works.
>extend credit accounts to anyone with a pulse
If these are notes secured by vehicle title, there are companies which will buy that paper, which will lower the cost. It just means you will once again have a car payment, for awhile. Heaven help you if the vehicle is not free and clear. I’ve never heard of a “second” auto loan (yet).
>Maintaining a home equity line of credit, while expensive
Not all that, especially if you have an established relationship with the lender (S & L, or Credit Union).
If you are an old fart, you also have the option of a HECM (a.k.a. “reverse mortgage”).
If you fall in the latter category, be sure to shop aggressively and not get fleeced.
https://www.mortgageprofessor.com/homepage/
From RK: “Maintaining a home equity line of credit, while expensive…”
Not sure how maintaining my zero cost HELOC is “expensive”.
I also have a personal line of credit for $25k, it to is not “expensive”.
So called “home warranties” are of a piece. As always, RTFP (Read The Fine Print).
When I bought my 1989 Ford F150, the dealer was aggressively pushing an “extended warranty” on the engine control chip. Fear mongering at its finest. “You know, if that chip fails, the vehicle will not run at all.” Guess what? the Intel engine control chip still works flawlessly, 37 years later. It’s Intel, runs swell.
The ultimate in fear mongering “extended warranties?” Religion. Specious premise: when you die, you don’t die, you “go to Heaven,” but only if you pay up, here and now. Preacher man has to finance his private jet and his harem *somehow*. Might as well be you, chump.
They don’t sell extended warrantees because they are losing money.
The first time I went to Las Vegas an invaluable piece of advise was given: “The Strip didn’t build itself by the house losing.”
It’s true of everything. Who benefits in this deal? Always follow the money.
Decades ago I bought two used car warranties. The one from Ford was good but the aftermarket one was a complete waste of money.
With the extended maintenance pushed by the car manufacturers I know that extra wear has been done to the drive train by the time you buy it with 70K on the clock because people who know they won’t be driving a car after 5 years won’t be changing the oil at 5k miles let alone 3K miles when the manufacturer is OK with 10K intervals.
So if you’re buying a used car from an OEM dealership it may be worth looking at an OEM backed used car warranty, depending on price and coverage though.
Found one!!
Why do is it that you feel entitled to post off topic bullshit here.
The article was about extended warranties.
But no, you’re going to post about unrelated bullshit about U of M consumer confidence, Nixon, and Musk.
OK Boomer!
The only mention of the word “Musk” is in your comment. Do you work for a warranty company or something?
Found another one
Musk owns SpaceX retard
Look in the mirror and you will find the Retard for whom you are searching.
I think that you need a new handle – perhaps Retard Hoisted on Own Petard?
Eric’s article is titled ‘Better to Save Than Spend.’ My comment addresses what happens to the savings rate when consumer confidence drops — exactly that — and not off topic.
Learn to read, Retard.
Hey “Short Bus to school kid”,
I appreciate wide ranging commentary on this dissident website …thus you Must provide me with your address ….so we can have a “riotous good time with a Molotov cocktail party” in your mother’s basement…..
I’ll pay for the gas..Honest Injin…Whadda ya say???
University of Michigan’s consumer confidence fell to a record low this week. It’s a data series that extends back decades.
When consumers get scared and hunker down, the savings rate goes up, starving businesses that depend on consumer spending — starting with auto makers and home builders. To counter this phenomenon, which went to extreme lengths in the Depression, ol’ Maynard Keynes advocated for Big Gov to step in, borrow, and create aggregate demand.
That was all well and good in a thrifty era, when both individuals and government shunned debt and sought to balance their budgets. But today, crack-addict Big Gov is nearly $40 trillion in debt and runs chronic $2 trillion annual deficits. And — the cherry on top — it just started a stupid, evil war for little Shitrahell.
Save if you can, bearing in mind that war is inflationary. So savings held in Federal Reserve Judenschrift will rapidly depreciate in purchasing power. The full-fiat era, announced by Richard Nixon on 15 August 1971, has reached peak degeneracy. Now the SpaceX initial public stock offering rings the bell on the crack-up boom’s mighty bubble, as the last clueless punters are relieved of their savings, in the insane belief that they are ‘investing’ in a colony on Mars.
It’s all over but the cryin’. 🙁
Seeing noticeable product shortages in grocery stores here in ZIP Code 92882 (Western Riverside Co, CA). Mainly local and regional brands, so far. Retailers covering the blank patches of shelving with inferior merchandise of various sorts.
Also very blatant “shrinkflation” from national brands.
“Save your money?” GFL.
I usually consider war stocks to be a sucker’s bet, because cost-plus means there will be “expenses” to offset any contracts. Those” expenses” will include CEO bonuses, but not anything to make a big difference in market cap. That’s the way it’s been my entire adult life. The money is in being an insider, not an investor.
But I’ve ignored my own advice of late. Unless the US intends to curl up in a ball and bribe the countries it’s harmed into leaving it alone, it’s going to need some major innovation. Drones, cyber and missile tech, especially. Cheap counters to cheap weapons systems. And even fancy area denial stuff that is evidently still in testing, or at least I haven’t heard of it being deployed.
Unlike the weapons systems that had made sense up ’til now, this dual-use tech has some real potential to scale through civilian sector.