Smart or Scam? Should I Buy an Extended Warranty?

There are many different opinions on extended warranty, but what’s the truth? Should I buy an extended warranty, you ask? Read more to learn if you should buy an extended warranty or not now!

Keyword(s): should I buy an extended warranty

Whenever you buy an expensive item like a phone, a laptop, or a car, you’ll most likely be offered an extended warranty. Often, these warranties can increase the cost of your purchase by hundreds of dollars.

Offering an extended warranty might seem like an act of customer service. But they’re actually a great way for retailers to make some extra money. So are they really worth it?

Do you find yourself asking: “should I buy an extended warranty?” Read on and find out if extended warranties are worth your money.

What Exactly Is an Extended Warranty?

An extended warranty is basically a service contract. It will cover the costs to have your purchase repaired after the original warranty from the manufacturer has expired.

What About Smartphones?

Smartphones are certainly a product that’s prone to breaking down. Everyone has had at least one mishap with a phone that’s caused damage.

Smartphone extended warranties often have a lot of fine print. If you do make a claim, you might not get a brand new version of your broken phone. Instead, you’ll likely receive a refurbished version.

The smart move is to always keep your old phone, so you have a backup if anything happens.

If you do want to get an extended warranty for your phone, consider paying for a warranty from a dedicated coverage provider. This will almost always result in a better deal than the one you can get at the store.

Some protection plan companies will give you a check for the market value of the phone instead of giving you a refurb. Make sure you shop around for the best-extended warranty rather than just take the first one offered to you.

Another Issue with Extended Warranties

Just like with any insurance company, you may have a difficult time getting the repairs you should be entitled to. In a lot of cases, there will be some sort of fine print that prevents you from getting a replacement.

Many people who purchase an extended warranty end up disappointed. You might have an issue with your product, for example, that’s not covered.

You might wait weeks only to find out the damage to your item has been determined to be your fault. This is why you should look into purchasing an extended warranty from another source. The warranty they offer you at the store is almost never the best deal.

There are a lot of quality companies selling protection plans online. Don’t think the warranty offered by the store is your only option.

You Might Already Be Covered

Another thing you should consider is you might already have all the coverage you need. 

Sometimes, the manufacturer might already offer an extended warranty service. When this is the case, purchasing an additional extended warranty from the store is redundant.

You might also already be covered by your credit card or bank account. Check with your bank and see exactly what kind of insurance policies they have to offer.

If you take the time to do research, you’ll avoid purchasing a redundant warranty over your existing one.

Beware of Commission-Based Workers

When you buy a lot of products, you’re dealing with people who work for commission. This means it’s in their best interests to sell you an extended warranty. In fact, they might sell you an extended warranty that’s totally useless.

Sometimes, the manufacturer will already provide you with an extended warranty. When you’re shopping, don’t fall into the trap of thinking the store has your best interests at heart. Especially if the workers there receive a commission on sales.

Alternatives to Extended Warranties

If you don’t want to get an extended warranty or can’t afford to get one, don’t worry. There are some alternatives to protect your treasured items.

For a start, you should make sure you buy good products that aren’t likely to be defective. You can hop online and research the products you’re interested in. You can even find a list of “what breaks and what doesn’t” at Consumer Report.

Make sure you always check the reviews before you buy any products. You should only buy things that have a good reputation and come from a good brand.

If you limit your purchases to items from quality manufacturers, the chance of you receiving a defective product goes way down.

You could also set up an emergency fund. Whenever you have a little extra change, simply deposit the funds into your emergency account. You’ll likely save up a good amount of money doing this.

When something you own breaks down, you won’t need to worry about not having coverage because you couldn’t afford an extended warranty. At least you have some money to pay repairs with.

Make Repairs Yourself

There’s also another option you might not have considered. You could always have a go at doing the repairs yourself.

The internet has a huge amount of information and tutorials on how to repair almost anything. You can check sites like Youtube, where you’re likely to find step-by-step repair instructions.

You could also check specialist repair sites. Make sure to consider whether or not the repairs are worth doing. As a general rule of thumb, if you need to spend more than half of what something is worth to repair it, you shouldn’t bother.

You might also consider simply replacing something that’s already broken down multiple times.

So Should I Buy an Extended Warranty?

Again, you’re probably asking yourself: “Should I buy an extended warranty?”

In a lot of cases, it might not be necessary for you to buy one. Whenever you make a purchase, make sure you do your research.

Sometimes, the manufacturer will provide you with an “extended” warranty by default. If this isn’t the case, you might want to look into getting an extended warranty yourself.

You should constantly treat the warranties offered in store with caution. You can almost always get a better deal if you look into other protection coverage providers.

Do you want to protect your items with solid warranties at affordable prices? Then take a look at our warranty coverage plans!