Why You Should Never Buy An Extended Warranty
When it comes to buying an extended warranty, there are a lot of naysayers out there. “It’s just a waste of money!” they’ll say. “You’re never going to use it!” But is that really true? Well, as it turns out, those naysayers might be onto something.
Let’s take a look at some of the reasons why buying an extended warranty might not be such a good idea.
8 reasons why you shouldn’t buy an extended warranty
1. You probably won’t need it
In most cases, the average lifespan of a product is much longer than the length of the warranty. So unless you’re planning on keeping your product for an unusually long time, there’s a good chance you won’t even need to use the warranty.
2. It’s usually not worth the money
Extended warranties typically cost quite a bit of money, often 10% or more of the purchase price of the product. And in most cases, the benefits you get from the warranty are not worth the price you paid for it.
Mostly, you get some form of “peace of mind”, though how much that’s worth is debatable.
3. The coverage is often limited
Most extended warranties only cover certain types of problems and exclude others that are quite common. So even if you do have a problem with your product, there’s a good chance it’s not something that will be covered.
For instance, you’ll frequently find exclusions for accidental damage, like dropping your phone in the toilet or spilling coffee on your laptop. And in many cases, the warranty won’t cover normal wear and tear.
4. The deductibles can be high
If you do have a problem that is covered by the warranty, you’ll often have to pay a deductible before the benefits kick in. This can range from a few dollars to upwards of $100, depending on the product and the warranty.
So even if you do use the warranty, you might still have to pay quite a bit out of pocket.
5. The claims process can be a hassle
Claiming on an extended warranty can often be quite troublesome. In many cases, you’ll have to ship your product back to the company for repairs, which can take a long time. And even then, there’s no guarantee that they’ll actually fix the problem.
6. It’s not “real” insurance
Contrary to what some companies would have you believe, extended warranties are not really insurance. Insurance is supposed to protect you from unforeseen events that could potentially cause financial ruin. An extended warranty, on the other hand, is just a way for manufacturers and retailers to make an extra buck off of you.
7. You’re probably already covered
If you have a credit card, chances are you’re already covered by an extended warranty without even knowing it. Most major credit cards offer some form of extended warranty protection on purchases made with their card.
So, before you plunk down the extra cash for an extended warranty, check with your credit card company first.
8. They’re just a scam
At the end of the day, extended warranties are nothing more than a big ol’ scam designed to separate you from your hard-earned cash.
Companies should design their products to be durable and last a long time. If they can’t do that, they shouldn’t be in business. Asking you to pay extra money in case their product breaks is just a way for them to pad their bottom line.
Don’t fall for it!
Conclusion
While it might be prudent to get an extended warranty on an expensive product that you use frequently, in most cases it’s just not worth it.
You’re much better off setting that money aside in case you do need to repair or replace your product. Or perhaps use that money to pay a little more for a higher quality product that is less likely to break in the first place.