When it comes to the purchase of big-ticket items, consumers may want some added protection. If you're someone who likes having added security on large purchases you should invest in an extended warranty. Extended warranties can offer you the protection you need and peace of mind you deserve. There are a few things you need to know about extended warranties so you can be informed and able to use them to your advantage.
What Is An Extended Warranty?
An extended warranty is, in a sense, a form of insurance you can opt to buy along with the purchase of a high-ticket item. An extended warranty covers repairs or replacement that the standard manufacturer's warranty does not. While the purchase does add to the cost of the item, the minimal amount you spend upfront can save you hundreds or even thousands of dollars down the road if your product quits operating correctly. While your product may be protected with a free warranty for a set period of time, the extension allows you a longer time frame for which you will be covered.
Choosing a Warranty
In some situations, such as during the purchase of a car, you can choose from whom you receive your extended warranty. Receiving the warranty from the manufacturer, for example, allows you the convenience of a nationwide network of support without the hassle of conflicts regarding repair prices. However, this type of extended warranty may be expensive. On the other hand, you could choose to purchase a third party extended warranty directly from the dealer at a lower price. It is important to weigh these pros and cons and make the choice that best fits your personal preferences.
Be On the Lookout
While extended warranties are good to have, there are a few things you should be on the lookout for to ensure the plan you purchase is worth it. In many cases, you will have a number of plans to choose from. Among the features you should check for include:
- Certification from the Better Business Bureau
- Transferability
- Free loaner while product is being serviced (if applicable)
If the warranty you are considering requires you to pay out of pocket costs for repairs or if it has too many limitations, or exclusions, you should think twice before signing up.
You Get What You Pay For
As with most things in the consumer world, opting for the least expensive product or service often means you must compromise on quality. If you are going to make the investment in an extended warranty, it is usually worth the money to select a plan that is not the least expensive. Oftentimes, you don't get the protection you are most likely to need in the future. At the same time, however, read the fine print. By doing a little research and being informed, you can make the most of your extended warranty plan.
