You know the question: “ Would you like to invest in an extended warranty on this product?” Sellers are promoting extended consumer warranties and that might sound like a great idea. After all, if you spend over $ 1,000 on a new laptop, you’ll need some sort of protection in case it breaks. After the question is asked, there is almost always a pause before the consumer responds with a half smile: â€œNo thanks. I do not need it “.
This pause occurs when the buyer is discussing; Are Extended Warranties Worth? This is especially true for parents who buy technology for their young children that may or may not break devices.
Are Extended Warranty Worth It For Technology?
The short answer is no, the extended warranty isn’t worth it. The vast majority of extended warranties are not used and serve to increase the retailer’s income. In the vast majority of cases, products do not break by themselves. If you do happen to break your laptop or tablet, out-of-pocket repairs are often less expensive than you would pay for an extended warranty.
Let’s put it differently. The Warranty Week newsletter focuses on the warranty industry. According to a newsletter sent out in September 2017, the industry’s warranties are valued at $ 23 billion. Do people have that many accidents in the first few years of using their product? Most likely not.
Better to ditch your extended guarantee and instead put your money in a savings account that you can use in case of an emergency. The only time to consider an extended warranty is if you are in a situation where you know the device has a high risk of damage, such as a laptop or tablet for field use, where heat, condensation and other risk factors are out of scope. norms.
Make sure, however, that your warranty covers the types of damage your work machine may experience. If your extended warranty doesn’t provide protection against damage that might occur to your computer, skip it and get a durable case.
Are other types of guarantees worth it?
While the extended warranty may not be worth your money, there are other protections that are absolutely justified. For example, protecting your mobile operator. According to research by SquareTrade, approximately 5,761 smartphone screens break every hour in America. As a country, we are not careful about our mobile devices. Of course, the study also found that most of these breakdowns are due to the widespread occurrence of being “awake” – 74% of breakdowns occur as a result of dropping the device.
While many people are happy with using a phone with a cracked screen, unless the damage is too much, there is no reason for it. Virtually every ISP and carrier provides a protection plan that allows you to replace a cracked or broken screen at almost no cost. As the cost of replacing screens increases (iPhone Xs Max costs an average of about $ 330 to repair), carrier protection is becoming a significant investment.
Why phones instead of laptops? Due to the nature of phones, they are at much greater risk of damage due to frequency of use. People write on the go, pulling out their phones to check or reply to a message without looking at the road in front of them. When was the last time you actively used your laptop while walking?
However, there is one caveat here. Please read the terms carefully before agreeing to insurance for your smartphone. If you spend $ 10 a month on insurance and still have a personal deductible of more than $ 100 or more, it’s not worth it. If you need to replace your screen, you can do so by ordering a replacement from Alibaba and a few hours later on YouTube.
Is the Extended Warranty Worth it for other products?
Extended warranties are offered on virtually everything you buy. If you’re investing in a smart device, skip the warranty. The built-in manufacturer’s warranty covers any product defects that may result in a return. No extended warranty required.
When buying video games, you will most likely be offered an extended warranty. GameStop is especially famous for this – around $ 3.99 per year of protection. Companies are also continually offering protection plans for game consoles. They are not necessary. Any manufacturer problem will be eliminated at minimal cost or free of charge as gaming companies try to stay in the gamers’ location.
Finally, you don’t need your TV’s extended warranty. Since the TV is often the centerpiece of the home, companies urge buyers to ensure that it is protected from all costs. Think about the last time a TV broke down to be covered by an extended warranty? Getting into a VR game and breaking the screen is most likely not covered by extended warranties.
Other factors to consider
An extended warranty rarely costs money. There may be a few specific cases where they make sense, but there are very few of them. On the other hand, you may already have an extended warranty without even realizing it. How? Two words – credit cards.
Many credit card companies provide their customers with automatic extended purchase guarantees. American Express generally offers the most comprehensive coverage, followed by MasterCard and Visa. The manufacturer’s warranty can also be extended. Check out the fine print. In many cases, you can register with the manufacturer and extend your coverage at no additional cost.
Do yourself a favor. Skip the extended warranty and invest it in a savings account or strong protective cover.
Have you purchased an extended warranty earlier? Did you find an extended warranty? Let us know in the comments below.