Like you, I’ve generally come to the conclusion that most warranties are simply not worth it. I used to buy warranties frequently, but a few years ago I started to look at my history with them. I realized a few things:

1) I’ve never made a claim on one.

2) I tend to take really good care of stuff. So my devices are rarely lost due to damage or improper maintenance.

3) Electronics are more reliable than they used to be. Whether it’s an LCD TV, a Macbook, or a dust buster, things seem not to fail like they used to.

4) The price of electronics is constantly falling. So replacement costs will be cheaper tomorrow than they are today.

5) The quality and feature set of future electronics will be higher tomorrow than they are today. In other words, replacement also means upgrading.

So putting all this together, I feel like the best choice is to “self-insure” and keep the money I would otherwise spend on a warranty in my pocket. Over time, I think I’m much better off because I avoid spending unnecessary money on warranties, many of which have incredibly high profit margins for the issuing companies.

In the very unlikely event that I do have to replace a device before it’s anticipated life cycle ends, I know it will cost less than it did originally and I know that whatever I buy will be even better (technology marches on).

Even if I have to fork out $1000 on a new Macbook, I know that I’ve saved more than that by avoiding other warranties all together.

Insurance is a good idea. Will definitely talk to my insurance agent. Thanks for the information .