Warranty company's are in the business to make money, not to lose it.. Just like the insurance company's you have to use so you can drive your car on the road/ liability and collision.. Their rates are based on what they have to pay out on average unit, then they add on profit for them. It IS a business after all.. I am a service advisor at a Dodge/Jeep/Ram and Fiat dealership but only have been doing this for about a year, before then I was tech for just about 40 years. I have limited experience with non factory or non dealership based warranty company's. I would probably stay away from company's that make you pay for the repair and then they would reimburse you..Ive had a few customers come back to me, cussing me out because their company didn't pay.Of the company's, that will pay me direct, it might take take me a few days to get the payment and unfortunately I cannot release your car back to you until they do. I would think hard about extended warranties and what they will cover. Most of the major repair bills are for internally lubricated components. They include engines, transmissions, differentials, transfer cases and sometimes AC compressors. There are different levels of coverage, If you think you can cover out of pocket sensors and the such, just buy the lubricated components, it will save you some money, maybe. If you decline electronic coverage,, and a control unit goes out,, that can be pricey. There is no good answer here, todays cars are expensive to repair after their warranty expires. See sentence #1 above and buyer beware. Hope this helps..