In many cases, a guarantee can seem like a dirty way for manufacturers to extort a few extra dollars from their customers. In some cases, it may be a good idea to buy a warranty. Whether you're considering signing up for a warranty on a major purchase or paying a few extra dollars for a warranty on a small device while queuing at Target, here's what you need to know to make the best decision.
What is a warranty:
A warranty is basically a warranty from a manufacturer that their product will not break or need to be repaired for a certain period of time, and that if it does, they will fix or replace it without cost as a mini-insurance. Many products already have some form of warranty. Retailers will often give you the opportunity to purchase an extended warranty so that the product is covered longer.
Are you getting the extra warranty?
Although many experts agree that buying an extended warranty is often not worth it, there are some cases where it may make sense. Be sure to read the fine print. You want to know exactly what the warranty covers. how long it will apply; if you have to pay a deductible before coverage begins. and any exceptions. Here are some additional things to know if you are considering a warranty for the following purchases:
Whether you should buy an extended warranty on your car depends on whether it is new or used, how reliable it is, how how long you plan to own it, how much you plan to use the car and your current financial situation. If you are able to afford a repair that costs a few hundred dollars, it probably does not make sense to buy an extended warranty and it will cost you more in the long run. If you are buying a used car that is known for being unreliable and worrying about super expensive repairs, it may make sense.
Appliances such as washers, dryers and refrigerators can be expensive today and cost thousands of dollars. And if they break, repair costs can really increase. But that does not necessarily mean that an extended warranty makes sense. Today's appliances are quite reliable, and even if they require repairs, it is likely that they will cost less than the warranty itself. Experts advise consumers to buy an extended warranty only if the cost of having to perform early repairs would make the cost of the warranty worth it, or if it is important for your peace of mind to have an extended warranty. Weigh the cost of regular repairs against the warranty cost and / or deductible.
In most cases, small appliances can be returned immediately if they are defective and already have a 90-day or one-year warranty. So buying a warranty on a small appliance is usually not worth it.
Most experts agree that consumers have more to lose when they buy an extended warranty. But under certain circumstances, or if your peace of mind depends on it, it sometimes makes sense to buy an extended warranty.
For any of your insurance questions, call or contact Keller-Brown Insurance Services today.