Part insurance, not warranty.

Under a guarantee I understand: is the part within X years broken, it will be repaired free of charge or will be refunded. What ERGO sold here, but is a device-insurance. Is that part about after four years break, there are only 40% of the purchase price. Is the device 200 EUR cost, so broken after four years, and the repair costs 120 EUR, you get, as long as the insurance ever pays what, everything is at the 30 exceptions that are listed in the small print but self-evident, then you get 80 EUR replaced and remain sitting on 40 EUR. This is in my view no guarantee!