Larry
Prescott Valley,#2Consumer Suggestion
Tue, September 24, 2002
Home warranties are useful only if someone else has paid for it, such as when you buy a home and the seller pays for the policy. Even then they aren't worth much. What makes them bad is that you pay for the policy up front and then pay a service fee any time you call. Once in a while it will save you a little but in the long run the warranty company has to charge you more than it costs them to stay in business. Big ticket items like air conditioners are really bad news. You pay, what, $500 a year? You think they're gonna put in a new $4,000 A/C unit if your old one dies? No, they're gonna either tell you it's not covered or they're gonna make some really cheap and inadequate repair. One of the down sides to home warranties is that you lose your right to make your own decisions. The warranty company is going to base all their decisions on what is best for them in the short run, not what is best for you in the long run. Your best bet is terminate the policy and quit screwing around with them.