Just about every time you make a major purchase of some electronic item, such as a computer, TV, mobile phone, or even a household appliance such as a washer, cooker, hoover, etc, you are asked if you would like to take out an extended warranty on that item.
These warranties go past the time limit that a manufacture’s warranty may last. The manufacture may cover the item purchased for 30 or 90 days, this extended warranty may cover the item for one (1) year, or even longer.
Personally I waive off these warranty offers using the Jedi mind treatment, saying something like you don’t need that extended warranty, but on a few rare occasions I have purchased the extended warranty. Especially if the item I have purchased is new and not quite proven technology. These things can have bugs or issues that may not show up until after you have had the thing for a few months.
So there are times when thee warranties are warranted. A little joke.
If you use the item a lot, daily and are hard on things, the warranty may be a good deal.
Extended warranties on used cars can be a good move as you may not know the full service history of the car.
Prior to taking out for any extended warranty a couple of things need to be sorted out. One is the cost of the warranty. Is it worth it. To pay an extra £100 for an item that may only have been a couple of hundred quid, and can be replaced, is not a good bargain.
Second, what does this warranty cover? What will it do, replace an item if it breaks or only repair the item. What parts will it cover to repair or replace. Is there a deductible or out of pocket amount you ned to pay first prior to the warranty kicking in.
Also, does it cover excessive usage or just daily wear and tear?
A lot of questions and they need to be answered in order to insure the warranty is cost effective for you.
So extended warranties do have their place and can serve a purpose, but you need to get all the facts straight first.