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 - Ford Super Dexta - by Anthony West. The rusty blue tractor caught my eye as my truck zipped by the farm implement business. It looked so fornlorn amongst the lineup of newer equipment. But it was just the right size for my small farm. I stopped in and asked the proprietor for further information. "It's a 64 Ford Super Dexta", he said. "It's a tough little tractor, although it's a hard starter being a diesel and all." He did manage to get it running, compliments of a can of ether. Once started it putted along pretty good. It
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