Salespeople typically receive bonuses for selling the extended warranties. Don't be pressured into purchasing an extended warranty, you will most likely never need it because the product will function properly for many years (the companies generally know this will be the case). If you do want to purchase the extended warranty, be sure to ask about their policy for repairing the product and understand what is and is not covered. Will you be given a replacement immediately, will the product be repaired on-site, or will you have to wait several weeks for the product to be shipped out of town for repair, causing a major inconvenience?
Always remember the cost of an extended warranty is an indication of the probability a product will malfunction. The higher the cost, the greater the possibility the company has calculated the product will fail (companies do have people dedicated to calculating the probabilities) and vice versa. Don't waste your money on a product with a high costing extended warranty in relation to the cost of the product, the product will probably cause you problems in the future. Also, check if the contract will become null and void for any future claims after a claim is made. For example, you purchased a 3-year extended warranty, then the item breaks after 2 years. Do you still have another year on the contract or do you have to purchase a new contract to continue coverage?
You can automatically receive an extended warranty at no charge if you purchased a product using a certain level of a credit card such as a gold or platinum card. Contact your credit card company to determine how to obtain the better credit card that will double the manufacturer's warranty, typically up to one year. The card is a great benefit if you need the service at no additional charge.
Keep in mind that most extended warranties do not cover damage caused by lightning or a power surge. In that case, purchase a surge suppressor offering a warranty that will insure the equipment connected to the unit.
Return to Shopping Topics.