Thread: General Insurance for Note 2
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Old December 29th, 2012, 10:09 AM   #5 (permalink)
PsychDoc
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With all due repect to those of you who opted for insurance please be asware that these products are agruably among the biggest rip-offs in the retail space. There's a reason why car dealerships, Best Buy employees, PC Richards guys virtually attack you in their effort to get you to purchase this stuff. The profit margins are stratospherically high. While they may make 5% on the sale of a phone, TV, car, etc the profit margin on these extended warranties/relacement insurance products are often as high as 75%-80%. In short it boils down to the old axiom: if you can't go to sleep at night without "knowing you're protected" then you probably want to purchase this stuff. If you want to look at this as a business proposition you're far, far better off self-insuring.

It's like going gambling, putting a dollar on the table and getting back $0.25-$0.50 and being told "good luck." I'd rather make my own luck. FWIW Consumer Reports has repeatedly discussed this issue and has uniformly advised against purchasing these products.
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