Should You Purchase An Extended Warranty?
When you purchase an item such as a camera, television, or fridge, the salesperson will often ask if you would like an extended warranty. My response to this question was always a flat out no, I thought they were a complete waste of money. That is, until recently when I purchased a new fridge. Even though the extended warranty put an extra 10% on the price, I considered it well worth it. Not that I think fridges have a tendency to break down, quite the opposite in fact. What convinced me to get it was that if the fridge did break down then they would come out and repair it on the spot and only take it away if they really needed to. All I would have to do to get it fixed is make one phone call. The convenience of this far outweighed the cost. So I now have a five year warranty on my fridge and I figure if it breaks down after that time then I’ll be ready to buy a new one anyway.
An extended warranty provides extra coverage on an item, beyond its regular warranty. You should read the fine print carefully before purchasing the warranty but it should cover any faults with the item, damage which was not a result of negligence, and repairs. Check carefully to be sure you understand exactly what it covers to determine if you think it is worth while. I think generally it is worth while, especially for larger items such as fridges, washing machines, and flat screen televisions.
Also look at the typical life of the product and its likelihood of breaking down. A camera, for example, is something we might upgrade every few years, so do you really need a five year warranty? A computer is also something which we generally upgrade often, however, they have a tendency to break down often, or is that just me?
So the things you need to consider are convenience - do you really want to be lugging that big screen tv around to get fixed, the expected life of the product, and its likelihood of breaking down. I would say if it is an expensive item which you intend to keep long term, then get the extended warranty. If the item can easily be repaired or replaced then forget about the warranty.
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