How to Make Sure You Do Not Get Ripped Off on Extended Warranties

There exists an industry which is focused on profiting from the extended warranty opportunities that exist on everything from vehicles to washers and dryers. In many large retailers when you make a purchase you will be offered an extended warranty plan that covers you for normal repairs beyond the initial warranty period set by the manufacturer. On first glance, this is a good thing because some manufacturers have cut back the warranty coverage in order to cut costs.

However, there are some things you need know in order to help you determine whether nor not an extended warranty is right for you or not. Use these steps to help make the right decision:

Check the original manufacturer’s warranty period. Before you sign up for any extended warranty period, check the manufacturer’s warranty first. Find out what the duration of that warranty will be.

Check the coverage. Now, look at the specific coverage of the original warranty to see what is covered and how coverage is activated if it is needed. Be sure to pay attention to things like onsite coverage, shipping charges, and replacements for defective items. Shipping charges most times are not included in a warranty period unless specifically denoted.

Sometimes a manufacturer will choose to replace an item instead of repair it. If this is the case, be sure to get the new serial number and make sure it is registered with the same duration of the product that you purchased. Also, make sure that you are not given a used piece of equipment that looks like it has been abused.

Products called ‘b stock’ (those that have been returned previously) are used for warranty exchange programs, but they must be in pristine condition. It might not be a bad idea for you to take several digital photos of your item before you return it in order to verify the condition that it was in before you shipped it away for service.

Compare the extended warranty period. Now compare the extended warranty time period that is being offered. Usually it extends your warranty an additional year or two based upon cost.

Check what is covered. Find out what is covered and how coverage is activated if it is needed. Also, find out who you have to contact. Keep in mind that some manufacturers will offer an extended warranty as well. These are good to consider, too, because dealing with the manufacturer as the warrantor means that they know the most about your product and will probably be the best in turn around if it needs to be repaired.

Check the price. There might not be a way to compare prices, but the advice here is to make sure that the extended warranty cost does not exceed the value of the item being covered. Do not waste your money if that is the case. Some items like printers for your computer are now considered ‘throw-aways’ because they are so inexpensive as an initial purchase. Also, compare this to the cost of an extended warranty from the manufacturer. Most times the third party warranties will be less expensive, but that is not a hard and fast rule.

Make the choice. Once you have enough information, make your choice. If you are able, be sure to pay cash for your extended warranty instead of putting the amount on your financing if that is offered as an option.