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Are Extended Warranties Worth it?

Buying a new home many times goes hand in hand with buying new home appliances.  If you’ve ever purchased a home appliance, electronic device, or even furniture before, you were probably asked about an extended warranty. Leading to the question of, is the extended warranty of the appliance worth it? They come at an added cost on top of an already pricey purchase, so many people say no without another thought. Before you turn down an extended warranty for your new purchase, you should find out a little more about what makes extended warranties worth the cost.

What is an Extended Warranty?

An extended warranty is a warranty you can buy that extends past the length of the traditional warranty offered by the store or manufacturer of a product. Extended warranties typically don’t cover damages that were user error, but they will cover damages and repairs needed due to a product malfunction over time.

The Downsides

Our modern world has made it more difficult to decide rather or not to get the manufacturer’s warranty. Most products we purchase today has an electronic component to it. Chances are, by the time the manufacturer and store warranty expire, your product will be out of date anyway. When products are out of date, most homeowners will opt to upgrade to the latest technology rather than repairing what they already have. If an electronic component needs to be repaired, you’ll typically notice within the first year of use, which should be covered by a manufacturer warranty.

When It’s Worth the Splurge

Extended warranties are worth the splurge when you’re talking about products that would be very costly to replace. Things like TV’s or large kitchen appliances that you don’t intend to repurchase in the coming years. These products can cost thousands of dollars to replace and having an extended warranty so that you’re able to get a simple repair done is sure to save you a lot of trouble. It’s important to note that if the extended warranty comes at a very high price, you may not get the full value even if something breaks. A small repair may be cheaper to pay for out of pocket when it happens than the warranty is at the time of purchase. Unfortunately, there’s no way to know what type of repair you’ll need in the future.

Ultimately, deciding whether or not an extended warranty is worth the cost comes down to the exact product at hand and how soon you plan to replace it. Before purchasing an extended warranty make sure you take a few minutes to read over the manufacturer and store warranties. If those warranties seem like they’ll cover a sufficient amount of time, then you’re probably safe to skip the extra cost.

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