By: Lloyd Trushel
That’s what the so called “experts” on TV say, but they don’t have data.
These are only opinions and they are not actually experts. I am.
I have been in the insurance business for 16 years now.
I worked for, and with the largest companies in the world.
I understand risk and what it takes to build a vehicle service contract
(slang: extended warranty) from the ground up. That said, I buy coverage.
On furniture, cell phones, my car and home. And I pay close attention to
manufacturer warranties. And wait for it… I’ve had 5 claims so far this year.
Maybe I’m unlucky.
Still, when something goes wrong, it’s rare that it is a real problem.
Maybe I committed 4 hours towards handling those 5 claims.
1 hour getting a new phone. Covered by Apple care.
1 hour for an O2 sensor. Covered by a VSC.
1 hour for a broken shifter cable. Covered by a VSC.
30 minutes for a stain on my couch (courtesy of my dog). Covered by Guardsman.
30 minutes for a new printer. Covered by SquareTrade.
In return I received:
No major out of pocket expenses.
No major loss of time.
No major inconvenience.
See, the thing I’m looking for when I insurance is “what makes sense”
You are a professional mechanic. Your car breaks down. Yes, you can fix it, but you shouldn’t. Why? Good mechanics work quickly. If a repair guide says a job should take 1 hour, a good mechanic can finish in about 15-20 minutes. So, if he can earn 3-4 hours of labor time in 1 hour of actual time, he doesn’t lose 3/4 of his income working on his own car. So he’ll have someone else do the work if he’s smart.
Consider another profession, a barber. If barber “A” averages 1 cut per hour and barber “B” can complete 3 haircuts in an hour, who makes more money? This is basically the same thing.
Unfortunately, the garage will still charge you or me whatever amount the repair guide says. Regardless of how many actual hours the mechanic takes to complete the repair.
I don’t know about you, but I’m experienced and I don’t know how to tell if the shop is being honest on labor hours or parts pricing without doing lots of research. I also don’t want to haggle with multiple garages for a fair deal. So, I buy a quality VSC on every car I purchase and let the insurance company “baby sit” the repair facility.
Of course you can listen to the “experts” that tell you to skip the coverage, but they won’t help you pay your bill.
By: Lloyd Trushel
President / COO
The Consator Group
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