If you know cost and can buy at cost, generally agree.
I generally donât believe in always or never, so I am certainly not disputing your experience or that there are cases where certain coverage might make sense for the right use case.
I donât recall ever replacing a tire on any vehicle for a reason other than normal wear (or poor alignment, but that wouldnât be covered either).
(I quite literally never buy optional road hazard coverage when I get new tires either, for this reason.)
Iâve also never had to replace a wheel or needed to repair a bent one.
Iâve had to fill a small handful of rock chips over the years, but as I mentioned, zero windshield replacements, ever.
At this point if Iâd purchased PEACE OF MIND on every vehicle iâve ever had, I would be thousands and thousands and thousands of dollars in the hole at this point.
If these products paid out more in claims than the revenue they generate, no one could stay in business offering the coverage. Theyâre money makers even at wholesale price, and the retail markups are insane.
/thread
202020
I have a client who owns a business that specializes in T/W and other insurance for exotics and they make most of their money from investing rather than selling the warranty. But I donât care how much money they make or donât off of my purchase. It only matters if the product makes sense at the price being offered. Same with cars, groceries, etc.
Thatâs irrelevant to the retail public since theyâre never getting it at cost.
On some more expensive wheels they could be worthwhile, My friend bent his rims out of shape and they were something like $1,500 which they covered with 0 deductible
It happens every now and then. Sometimes FI managers need to hit numbers and taking a product at cost or $10 over is better than selling nothing. People always forgot you can negotiate with them too.
Man makes irrational decision linked to complex feelings of attachment to metal machine he just bought. The footage, coming up at 11pm.
Thatâs the revenue model for many, if not most, insurance products.
I donât think anyone believes that a car insurance company keeps your monthly premiums in $20 bills locked in a giant bank vault until they have to pay a claim. 
This doesnât change the value proposition for the consumer.