There’s a saying about being wealthy or, in this case, not having riches. The saying is, “if you can’t be rich, have plenty of insurance.”

There’s a saying about being wealthy or, in this case, not having riches. The saying is, “if you can’t be rich, have plenty of insurance.”

Ford Motor Co. recently announced it is extending the warranties on its 2007 vehicles with special plans for 2006 models. I personally like the idea. We have always bought extended warranties for our vehicle and have always found a use for them. We’re not concerned about the automaker: we’ve had problems with our imports as well as our domestics. No, we purchase warranties for peace of mind.

Next to a house, a car is a major purpose for most people. Yet few folks think about the costs of buying policies like fire insurance, flood, or-in my particular case-earthquake insurance. Yes, one could argue that cars, being man-made, shouldn’t require such policies. A flood is beyond people’s control, an “act of God.”

The attitude actually surprises me. Automakers don’t build their vehicles with the intent of them breaking. They, like all businesses, know the power of word of mouth. (Ignoring their rep or not listening to consumers is an entirely different matter.) The management, the designers, and the auto workers are first and foremost people, though, which means they’re fallible. who hasn’t misplaced the decimal when calculating a budget or put an extra shot of coffee in the drink? I’m sometimes amazed that current vehicles, many of which are more complex than the Apollo rockets and landers, function as well as they do.

All warranties are aimed at this human factor. They are a form of psychological “cushion” to reassure folks that we stand by our product to do what it’s suppose to do flawlessly. Otherwise, we’ll fix it for you. Yeah, cynics will say warranties are just a marketing ploy but so what? People’s true needs-food, shelter, clothing-have been largely satisfied in today’s world especially in modern nations like the U.S. People don’t need supra-fast cars or gigantic SUVs: heck, they wouldn’t need a car if cities weren’t so spread out or buses and rail were so limited in range. No, companies are competing to satisfy people emotionally, to make them feel good about themselves.

The rich achieve peace of mind in their purchases because of their wealth. The regular Jane or Joe can view warranties as their own “collective” wealth, reassuring them that–if something happens–they’ll have a way to deal with the problem without bankruptcy.