Should I Purchase an Extended Warranty?

An extended warranty lengthens the manufacturer's warranty.

You Could Be Wasting Money by Purchasing

Today's products have become more reliable and are unlikely to break down during the extended warranty period. In addition, the fine print in most extended warranties excludes your claim, making the warranty worthless. Sometimes the replacement cost for a new item is cheaper than the cost of the extended warranty.

Buy Some Piece of Mind

Most consumers would never attempt to repair today's complicated products. An extended warranty might provide piece of mind in case the complicated device does stop working. If you believe the warranty is backed by a reputable company, then it might make your purchase easier.

Bottom Line

Don't purchase the extended warranty unless you are certain that the warranty covers all possible product failures. Consumer Reports recommends buying reputable brands. It also suggests using a credit card that automatically extends the manufacturer's warranty, covering you if the product stops working.

References

• Consumer Reports Article
• Consumer Reports Money Saving Tips