For many consumers, the cost of the warranty exceeds the likely cost of repairs. However, it can provide significant "peace of mind" for those who cannot afford a sudden, large repair bill.
Read the fine print; many warranties exclude "wear and tear" items or require high deductibles that make small repairs not worth claiming. should you buy extended warranty
Instead of paying for a warranty, financial experts like those at Kiplinger and Investopedia often suggest putting that same amount into a dedicated . This way, if the product never breaks, you keep your money; if it does, you have the cash ready to cover it. For many consumers, the cost of the warranty
Items with complex electronics or proprietary parts (like electric vehicles or high-end appliances) can be prohibitively expensive to fix out of pocket. Instead of paying for a warranty, financial experts
If you are buying a product with a proven track record of durability, the statistical likelihood of needing a major repair is low.
Avoid buying the warranty at the moment of purchase for new cars. You won't use it for several years while the manufacturer's warranty is active, and you can usually buy it later. The "Self-Insurance" Alternative