It's like any other insurance company. They are in the business to make money, and they do so by trying to keep the amount they shell out less than the amount they take in. They do this in many ways. Deductibles, limits, exclusions, etc. If a customer actually read the contract, he would NEVER agree to it.
You are right, people should read the policy before they purchase, but they are being pushed by a car salesman who makes money on the sale. They aren't necessarily told the truth, in other words. This is the pattern with these 'extended warranty' scams - they are being sold to consumers by individuals who make a commission and in situations where customers either can't or don't want to take the time to read a contract.
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Today's Featured Article - When Push Comes to Shove - by Dave Patterson. When I was a “kid” (still am to a deree) about two I guess, my parents couldn’t find me one day. They were horrified (we lived by the railroad), my mother thought the worst: "He’s been run over by a train, he’s gone forever!" Where did they find me? Perched up on the seat of the tractor. I’d probably plowed about 3000 acres (in my head anyway) by the time they found me. This is where my love for tractors started and has only gotten worse in my tender 50 yrs on this “green planet”. I’m par
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