Are Extended Warranties Worth It?

Whether you’re in the process of purchasing new appliances, electronics, or furniture, or have purchased them recently, you were probably asked about purchasing an extended warranty. More often than not, people decide not to purchase the warranty to save money but before you turn down an extended warranty for your next purchase, consider if they’re actually worth the cost.

What is an Extended Warranty?

An extended warranty is a warranty that covers an extended period of time, past what is offered by the manufacturer. Depending on the warranty, they typically cover the cost of replacement or repair of the product due to manufacturing defects or poor workmanship.

When the Extended Warranty is Worth it.

Purchasing an extended warranty on a $25 mouse isn’t worth it, but purchasing an extended warranty on a large purchase, like a camera or refrigerator, is. When deciding whether or not to purchase the extended warranty, consider the cost of the item, how much it would be to repair if something happened, and the lifespan of it. If the extended warranty is affordable compared to those repairs or purchases