Is it worth getting extra warranty on appliances?
Stay alert to high pressure sales tactics sometimes used to convince to you to pay extra for an extended warranty and take note that retailers may also rebrand them as “product care”. An extended warranty might offer you extra peace of mind but it might not always deliver the coverage and protection you’re expecting. In retail consumer electronics, extended warranties cost 20% to 30% of the price, and give sales associates up to 15% commission at some retailers. Consumer advocate groups, such as the non-profit Consumers Union, advise against purchasing extended warranties unless they can be purchased at manufacturers cost.An extended warranty is an agreement that covers repair or replacement coverage of specific mechanical or electrical components in the event of damage or breakdown — but only in certain circumstances.Negotiating a Better Deal Speak with the finance and insurance managers, explain that you want to buy a new car and need to talk to them about the factory extended warranty on the vehicle. You may find that three different dealerships will give you three different prices on the same coverage.You’re effectively paying upfront for protection you may never use. Extended dealer warranties also come with plenty of fine print. They often exclude everyday wear and tear, common modifications and key parts or systems.extended warranty coverage helps protect drivers from unexpected repair costs once a factory warranty expires. By extending protection to critical components, extended vehicle warranty coverage ensures peace of mind and financial security on the road.
Is it worth paying for extended warranties?
Whilst it might be reassuring to have an extended warranty, they can come at a high price. And it still won’t necessarily cover everything that could go wrong. And, of course, you could find that the cost of the repair required was less than the price of the warranty. Or you may never need to use the warranty. The benefits of an extended warranty The advantages of this are that you gain the peace of mind of being able to cover the cost of certain repairs to your vehicle for the period of the warranty. Your used car could prove to be troublesome, and a warranty is a way to avoid risk.Cons of an Extended Warranty Extended warranties require an upfront payment or are added to your financing, increasing your total cost. If you don’t end up using it, you may feel like you paid for something you didn’t need. Depending on the warranty plan, some repairs may not be included.Approximately 37 percent of car owners have an active extended warranty and only one in ten have actually used it. The two top reasons why people say they do not have an extended warranty is that they think the coverage is too expensive and that they will never use it.Extended warranties do not cover general maintenance or wearable items like brake pads, batteries, or spark plugs, so you have to take this into account when reviewing the costs.One pro of extended car warranties is their convenient availability from car dealers, but cons include high upfront price tags and restrictive coverage. Explore Progressive Answers’ auto editorial guidelines to find out why you can trust the car insurance information you find here.
Is it a good idea to get an extended warranty on a refrigerator?
Refrigerator: Consumer Reports estimates that 34% of refrigerators require repairs within five years of ownership. Even though refrigerators have a long life span on average, it might be worth getting an extended warranty on your fridge to cover possible repairs. Most Samsung refrigerators include a standard 1-year manufacturer’s warranty, plus extended coverage of up to 10 years for parts and labor.According to the United States Department of Energy, refrigerators last approximately 12 years. At that point, it’s likely time to replace it. Of course, if your refrigerator is not energy-efficient, you may want to consider replacing it before it stops working.
Is an extended warranty a rip-off?
An extended warranty won’t cover wear and tear or car accident repairs. Extended warranties are a gamble. You pay the full fee up front without knowing whether you’ll use the coverage, and you may need to purchase separate extended warranties for your car’s different systems. In many cases, you can negotiate the price of extended warranties — especially when they’re offered as part of a new car purchase. Extended warranty products and service contracts often come with massive markups that you can haggle to reduce.Typically, an extended warranty covers the failure of a part or component of the product due to the malfunction of the unit or one or more of its parts or components. The extended warranty is on the furnace, boiler, or air conditioner and not on accessory components not included as part of the equipment.Ask for a Discount. Just like when you negotiate when buying a car, don’t be afraid to negotiate the price of an extended warranty. At dealerships, salespeople or finance managers may inflate the cost of the extended car warranty. Inform them the price is too high, and if they can lower it, you may reconsider.How to get your money back. You can cancel an extended warranty at any time and you’ll get a prorated refund for the unused portion of your policy. If the warranty was included in your loan, your car payment won’t drop, but you may pay off the car sooner after the refund is deducted from your balance.
How much should you spend on an extended warranty?
An extended warranty typically costs an average of $600 to $2,000 per year, but that varies widely based on where you buy the warranty, the reliability of the vehicle the warranty covers, and other factors. The price of an extended warranty also is negotiable. The time varies across different vehicle protection plans and providers. In fact, some companies put no waiting time in place at all, but these plans are harder to find. Most extended warranties require a waiting period of 30 days and 1,000 miles before you can file a claim.Extended warranty plans typically cover your vehicle anywhere from 2 to 7 years. If you expect to keep your car for several years, a longer plan may make sense for you. Even if you do sell your car before the warranty runs out, your extended protection plan may be transferable.Extended Warranties for New & Used Vehicles If you’re planning on keeping your vehicle for more than 10 years then an extended warranty can be worth the investment. It’s also worth checking to see what insurance coverage is included with your new vehicle purchase.Extended warranty plans typically cover your vehicle anywhere from 2 to 7 years. If you expect to keep your car for several years, a longer plan may make sense for you. Even if you do sell your car before the warranty runs out, your extended protection plan may be transferable.Extended auto warranties cost an average of $1,297 per year across providers, plans, coverage options and vehicles, based on our February 2025 secret shopping. Below, we provide estimates for bumper-to-bumper, mid-level and powertrain warranty coverage based on quotes we received during our secret shopping experience.
What does Dave Ramsey say about extended warranty?
Instead of buying a bunch of extended warranties that you’ll probably never use, you’re better off self-insuring by paying yourself the warranty payments. That way, if your TV does break after the normal warranty, you have the money saved to fix it. If not, it’s your money to keep. It’s a win-win! Condition: Extended warranties generally exclude pre-existing conditions. This means any problems your car already has before the warranty purchase are not covered for repairs. Similarly, wear-and-tear-related damage is typically not covered.The short answer is “no. Mark Kotkin, Director of Consumer Reports National Research Center, says that “extended warranties tend to be a bad deal for consumers” because “most repairs do not occur during the limited time period covered by the extended warranty. Sheila Adkins, Community Outreach Manager for the Better .The short answer is “no. Mark Kotkin, Director of Consumer Reports National Research Center, says that “extended warranties tend to be a bad deal for consumers” because “most repairs do not occur during the limited time period covered by the extended warranty. Sheila Adkins, Community Outreach Manager for the Better .
What are red flags in extended warranties?
What are red flags in extended warranties? Common red flags of car warranty scams include unsolicited communications claiming your warranty is expiring, scare tactics, ambiguous coverage details, and pressure to pay upfront or divulge personal information. An extended car warranty may help cover the cost of certain repairs to your vehicle when the manufacturer’s warranty expires, but they’re not for everyone. While it may sound like a good idea in theory, extended warranties often come with a high price tag and don’t necessarily cover everything that could go wrong.Auto service contracts — sometimes called “extended warranties” — are optional contracts sold by vehicle manufacturers, dealers, or independent companies. The contract seller agrees to perform (or pay for) certain repairs or services outlined in the contract.