When is it Worth it to Pay for an Extended Warranty?

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When is it Worth it to Pay for an Extended Warranty?

Submitted by: Tip Hero 06/24/2009 10:08 PM

Many manufacturers and retailers offer "extended warranties" that allow you to extend the life of a warranty, providing additional protection for a purchase should the product break down and not perform like it's supposed to. But knowing when it makes sense to pay for the extended warranty and when to say "no thanks" can be tricky and agonizing.

So when do you, if ever, pay for an extended warranty? Have you ever had an experience where something went wrong and you regretted not having paid for one? Or how about a situation where you had and were glad you did?

Share with the Tip Hero community below by posting a comment. And thanks for being a Tip Hero!

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Comments:

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Check with your credit card company. My Amex covers replacement of purchases up to a year, so when I accidentally washed my phone, Amex covered the replacement cost.

Posted by KReed on June 25, 2009 11:34 AM

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If u buy a demo model have then reduce the price to cover as much of the extended warranty as possible. You can say "I'll buy it if you throw in an extended warranty at no additional cost"

Posted by anonymous on June 25, 2009 1:41 PM

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We always recommend purchasing the extended warranty on Notebook computers. They routinely get treated roughly.

Posted by MakeMineCadburys on June 25, 2009 2:18 PM

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If you have been burglarized, harassed, or had or drug problems in your neighborhood, purchase the warranty so that you will have coverage in the event of vandalism.

This goes double if you've divorced an abuser.

Posted by anonymous on June 25, 2009 2:52 PM

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If you are planning to get an extended warranty to cover your equipment in the event of vandalism or "rough treatment," first make sure that this is actually covered. The terms of the warranty may exclude any damage not due to "normal use" (with "normal" being defined by the manufacturer).

Personally, I would never pay for an extended warranty. In general, there is no point in buying insurance to cover a risk that you can afford to take, because the expected cost of the premiums is always higher than the expected cost of the payout. Of course, this might not apply to you if you are a complete klutz or have notoriously bad luck.

Posted by haverwench on June 25, 2009 11:16 PM

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We bought a used Sebring just over a year ago and bought an additional 40,000 mile warranty. Just a few weeks ago the fuel injector system just quit as we started over a bridge. The warranty paid for the replacement plus labor plus a one-day rental car. I am thankful we had that warranty!

Posted by HopeSO on June 26, 2009 8:31 AM

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I agree with MakeMineCadburys, we have saved literally thousands of dollars by buying extended warranties for notebook computers.

That's the only extended warranty I would consider buying.

Posted by Biblioholic on June 26, 2009 1:12 PM

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Buy warranty for poorly made products or sensitive equipment. Note that, most products can be covered by your American Express card, they have a good reputation for honoring their warranty compare to VISA or MASTERCARD's version.

Most of the time, it's not worth the paper work or money to buy the warranty.

Posted by BuffetFan on June 26, 2009 4:05 PM

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An extended warranty has the biggest profit margin. In this day and age with the computer, you still have to produce the paper work to prove you have a warranty. That is how they dodge responsibility. So save the paper work.

Notice to, that often you buy a 3 year warranty and the first 3 or 12 months is covered by the manufacturer. Therefore, make sure your warranty begins after the factory warranty runs out.

I once bought a $50 edger and they wanted me to buy a 3 year warranty for almost $50. I told them I would buy to edgers.

Posted by james77777 on June 26, 2009 4:06 PM

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Extended warranties are like insurance.
You insure things you can't afford to absorb the cost to replace/repair the items. I've bought home warranties that paid for themselves after using them only once.

Posted by anonymous on June 28, 2009 12:05 AM

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I bought 2 extend warranties one for a new computer and the other for a new monitor.. both were for 3 years and bother were less that $50. MY computer was $2,500 and monitor $1,000.. I would rather pay that then be in troubled 366 days later.

Posted by MajeraL78666 on June 29, 2009 10:33 PM

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Has anyone dealt with extended warranties? We had one on our washing machine and will never do it again. We got such a run around that it took at least a dozen phone calls to resolve the matter.

Extended warranties are about as close to a legal scam as you can get. Companies will try to put you off hoping you'll give up.My husband and I probably logged 6 hours on the phone. At times I waited 45 minutes to talk to someone. We got the better business bureau involved eventually. It was Maytag.

Posted by anonymous on July 30, 2009 1:22 AM

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