On Sat, 31 Jul 2010 14:19:11 +0100, geoff wrote:

In message VWQ4o.8453$806.4685@hurricane, Norman Wells
writes
geoff wrote:
In message , Java Jive
writes
Over the years, consumer advice has consistently been against paying
for such extended warranties. They are a rip-off. In fact, if you
think about, there is a sense in which all insurance is a rip-off.

The best form of insurance is to have enough money earning interest
to replace whatever it is that is being insured.

Really ?

Would you like to remind up how much money you would have to put away
for how long at today's interest rates to replace an item which cost,
shall we say, £400 ?

If it's something electronic, about £200.

Completely failed to understand, didn't you

The previous posted is saying that rather insuring, put that money away
for the interest to buy you a new one when it dies

So ... how much money would you have to put away, OK, lets sat for 5
years as that's the length of the warranty period we're talking about to
accrue £400 interest (at what, 2.5%?)

In a normal domestic setting there may be several appliances
(entertainment, kitchen, etc) valued at a few £100 each. How many of
those are likely to fail in any 5 year period? If you guess that no more
than one of them will fail then all the money you need to save or have
available is enough to repair or replace one item. You do not need to
have enough to deal with all of them failing.

--
Peter Duncanson
(in uk.tech.digital-tv)