New electronics and appliances usually come with a warranty covering specific parts or functions. Since the guarantee time is limited, the retailer may suggest purchasing extended coverage.
These plans may pay off in the end: You’re covered if the appliance or technology needs repairs. However, if the item doesn’t break within the allotted time, you’ve paid for nothing. Moreover, the plan might not cover accidental damages.
To avoid spending unnecessarily, ask yourself the following questions:
Do I understand the original warranty?
Under federal law, you can review a warranty before buying. Look for the duration of coverage, whether it applies to parts and labor, and whether it offers a repair or replacement. Is there anything missing in the fine print? Do you truly need an extended warranty, or is the original warranty sufficient?
Regardless, fill out the required paperwork after your purchase, and keep the store receipt.
Does my credit card include extended coverage?
If you plan to pay by credit card, check the terms to see if they include extended warranty benefits. Log into your account and review the member agreement or contact the benefits administrator.
How long will the item last?
The more you invest in an item, the longer you’ll want to keep it. The longer you’ll have the item, of course, the more the risk of a problem increases.
Angi.com, which links users with home technicians and providers, lists the average lifespan of household appliances. For example, a window air conditioner typically lasts eight to 10 years, while a fridge may last 10 to 15.
How much is a possible repair?
An extended warranty on a $100 printer may not be worth the investment, while a plan for a smartphone or refrigerator can come in handy. For one, repairs can be pricey. For another, you count on these items for daily life. (That said, you may need to wait for a repair regardless of the warranty.) Angi.com also provides information on appliance repair costs, which differ depending on region and model (and, of course, what’s wrong with the appliance).
The national average for refrigerator repair is $650, while a microwave fix may run from $50 to $500. If the extended warranty cost is equal or even slightly less than the potential repair price, you may decide to go without.
Can you shop around?
If you’re not married to a brand, compare the available extended warranties on similar items. You might save money by buying a computer at Best Buy, which offers Geek Squad Protection and Totaltech. Or you might prefer to purchase an Apple product because AppleCare+ suits your need.
Ultimately, your choice will depend on your comfort level with the appliance’s reliability, your budget and past experiences.