3 Things You Need To Know About Extended Warranties

Have you ever been in a position where a sales person tries to sell you an extended warranty?  More than 50% of the time when a person goes into a store to buy an electronics appliance, the person is offered an extended warranty.  This happens more often if you are trying to purchase a higher end item.

Less than one fifth of the money customers pay for extended warranties is ever paid back to them.  In most cases, the money is profit for the seller and incentives for the sales people pushing the warranty.

This really makes you think. Is an extended warranty worth purchasing?  Is it worth paying more for what you something you may not need?  This is the question that most customers have to really think hard about when purchasing something with an offered extended warranty.  Below is all you need you need to know to make the right decision when it comes to extended warranties.

Is It Worth It?

No one knows when a product will break when purchasing it.  In fact, the average lifespan of a product is hardly ever revealed to the consumer.  Even if the life span is known, most people ignore it because they think it is biased towards the sellers.  Because of these reasons, you really have no idea if you will be able to use the extended warranty.  However, because all products are prone to issues, it is important to ask about it from others who have used the products, and then decide if a warranty is worth it.

What Does An Extended Warranty Cover?

It is important to find out what a warranty covers before buying it.  Most warranties these days have more and more limitations, which leads to disappointment from consumers when they try using them.

Extended Warranties And Electronics

Most technology companies sell extended warranties for their products.  It covers part of the cost of damaged products.  However, a warranty might not be worth an extended warranty for cheap and easily replaceable items.  Most people are not willing to wait for an extended warranty to fix their electronic device. This is especially true for cell phones.  However, for much more expensive appliances that may require costly repairs it is important to have an extended warranty especially from reputable well known consumer electronics companies

The Fine Print

Consumers have to read the fine print really well.  You should even compare several stores extended warranty policies to figure, which one is best.  Consumers should understand that extended warranties have restrictions. With these restrictions in mind, consumers have to make the best purchasing decision.

A few of the common extended restrictions are:

• No cover for product failure after a reasonable time
• No cover for accidental damage
• No cover for damage that exceeds a certain dollar amount
• It may not offer the loan of an item during repair
• Evidence of the consumer mishandling items may invalidate extended warranty

Credit Card Warranties

If you purchase an electronic item with a credit card, the card company offers coverage for stolen or broken items.  They  often also even extend the length of a warranty at no extra cost.  Using a credit card to purchase electronic items is better than purchasing an extended warranty.  Customers should contact their credit card companies and ask about purchase protection policies.

There are pros and cons for buying an extended warranty.  If you decide to purchase an extended warranty make sure you choose a great company, read the fine prints, check the costs, then cross your fingers and make the purchase.