Is an Extended Warranty a Waste of Money?

As the owner of several electronic devices, you might think it’s a wise idea to purchase an extended warranty on some of your more expensive ones. You probably assume that the cost of repairing a broken laptop or smartphone will run you into the ground, and an extended warranty sounds like a pretty sweet deal, right?

Not always. Getting an extended warranty is often a waste of your money, and here’s why:

You Might Not Use Your Device for That Long

Think about it. Your manufacturer already provides you with a pretty long warranty period for your electronic device. Most manufacturers, for instance, offer a one-year warranty for laptop parts and labor in case something goes wrong with your device. And after one or two years, you might not even be using the same laptop anymore. If you’re like many of us, you’ll have upgraded to a new one altogether, in which case, getting an extended warranty on the old one was a complete waste of your time and money.

Repairs Cost Less Than You Think

Unless you own an Apple device (where the cost of repair can be pretty expensive), repairing your laptop, smartphone or TV is likely cheaper than you think. In fact, it might even be more affordable than the amount you would be paying for your extended warranty. And if your warranty is not saving you money in the long run, then is it worth it?

Some Credit Cards Offer Warranty Extensions

Instead of shelling out money to get an extension on your warranty period, check with your credit card provider first. Some providers offer free extensions on the warranty for all electronic devices, in which case you do not have to pay at all!

The Warranty Could Come with Interest

The price of your extended warranty might not seem high at first, but when you sit down and calculate the total cost (especially if it requires monthly payments), you will realize that you are paying quite a hefty sum in the end. Moreover, if you miss your monthly payment, you might even have to pay interest on top of everything else.

You Get Limited Coverage on an Extended Warranty

If you decide to opt for an extended warranty, you would want it to cover most repairs and maintenance costs. However, you might want to read the fine print first. You might find out that you will not be covered for many damages and replacements because of the restrictions and limitations placed on your extended warranty.

Never sign up for an extended warranty without checking for this common loophole.

That Money Can Buy You a New Device

Instead of shelling out money to maybe keep your old device chugging along years down the road, consider saving that money. Put it in an electronics-only savings account, so you earn interest on it, and put it towards a new device if and when your current one gives out. And if it won’t cover a new device, check to see if your saved money will cover the repairs on the current one.

Do you think getting an extended warranty is worth it? Let us know!

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