Originally Posted by DLS
I don't go for those, no. They wouldn't offer them if they weren't making money. For every $1000 they take in, maybe they'll have to pay out $100. If you buy these warranties on all your electronics, you'll lose. If you buy it on high-priced items only, you do have the potentially to be saved a costly repair. The exception to this rule was early XBox 360s. They just plain died, often.
If you buy enough electronics with these warranties, and one item does actually break, you're covered, great. Except for the average electronic item, you'll have paid more for all the warranties put together than you'll claim on fixes/replacements.
But the 5DmkII is more expensive, and potentially more expensive to fix. Lets says the average 5D repair is $500, and the warranty is $200. Most people will never make a claim, so the insurance company will make money. If *you* make a claim, you're going to save $300. If you don't make a claim, you're out $200. But, do you get the warranty on your L lenses too? If you have 3 lenses with $100 warranties, you'll have already pre-paid $500 towards repairs. In this case you'll need to make multiple claims to be ahead. What are the odds of you needing multiple repairs between year 1 and year 4 (or whatever the extended warranty period is)? The more you're considering insuring, the less worth it it will become.
If you'd rather not take the risk, then you have another option too. The retailer's insurance covers what? How much of that is already covered by your home insurance?If it doesn't cover much, you can consider getting the extra coverage added to your home insurance. Theft or fire is generally already covered by your home insurance. You can have them insured against whatever else you want (whatever you're willing to pay for), such as accidental damage. Dropped your camera and lens into the lake? Your entire backpack off a cliff? That's potentially covered... but will likely increase your future premiums.
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