If you buy a used pj for, say, $850, the extended warranty companies will, at best, give you a $850 credit towards a new pj, perhaps of their selection. It is not like they will give you a brand new, $2000 current Panasonic pj. Also, unless they clearly state, "And unlike anyone else, we cover problems from abuse and neglect!" then assume that they DON'T. Things like dust blobs and partially burnt polarizers, two biggies, are often deemed "neglect" issues (poor ventilation, didn't clean the air filter every 100 hrs., etc.). [And of course they never cover the bulb (lamp) unless they have plans that cost a lot more than most.]
If the extended warranty company goes bankrupt, do you get your money back?
Ask yourself this: Do they set their prices arbitrarily? Or do they use clever statisticians who carefully calculate the actual likelihood of product failure, over the given time, and the price to fix/replace it , to then determine a price that will be, overall , more profitable to them, the insurers, or to us, the buyers? Think about it.
"we think extended warranties for computers and other electronics items are bad investments. In past surveys, we've found that the vast majority of repairs are made while items are still covered by a factory warranty and that extended warranties typically protect, at relatively high cost, against a very low risk of a catastrophically expensive repair....
We don't recommend purchasing a warranty or service contract, because most repairs do not occur during the limited time period covered by the extended warranty."
Edited by m. zillch - 9/2/13 at 10:09am