We couldn't even remain in business very long at their rates. On the other hand, we also have GREAT warranty companies out there, we recently have replaced entire HVAC systems as they were in fact non repairable, replaced complete furnaces, and condensing units as needed. In each and every one of these the customer only paid the deductible averaging some $70. 00. I wish I could say which ones are good and which ones to stay away from, but, I simply do not have a budget that can carry a full legal staff to defend these facts, or fight the bad ones when they came after me. But, you, you have the power of choice, as I said earlier, there are some very good ones out there, do your research, read the reviews. High volume and low dollars does not make for a satisfactory business.
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In other words, the cost of the average item breaking down within the warranty period usually runs about 12%.