I think Pylon summed it up nicely. I know people who bought these claim free reward type of warranties (pay $3000 now and if claim free after 3 years, $2000 back). To them, it's a only a $1000 warranty but it's gimmick to me. If you are buying a relatively new car, on average, you shouldn't be hit with a $5K tranny job.
Even if you did get hit with a $5K tranny job, you're only saving $2K ($5K minus the $3K premium). These type of warranties appeal to the insecurity of human nature. To me security lies in improving our financial situation so a $5K tranny job does not wreck our life and not in these gimmicky warranties.
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