Define Warranty Insurance

Life has no guarantees and neither do many goods and services. It is for this reason that many manufacturers offer warranties on a variety of products.

Identification

A warranty is an assurance that if a product or service breaks down or fails to meet the consumer's expectation, it can be redeemed for a replacement or repair. Warranties often have a set time period before they elapse.

Benefits

Warranties are an added benefit that is a selling tool for the product or service. They also serve as additional revenue for the manufacturer.

Considerations

Consumers must consider the overall cost of the product and whether it is beneficial to buy a warranty. They must also consider how long they wish the product to last.

Types

There are warranties for electronic products like radios and computers. Warranties also exist for automobiles for a certain time period and mileage.

Effects

Warranties give consumers a standard channel for recourse when they are unhappy with a product or service they have received. It also shows good faith on the part of the manufacturer.

Resources

• Auto Warranty