You have probably been asked if you want to purchase an extended warranty or protection plan while in the checkout line of a major retailer. Presenting the offer at checkout gives you only a split second to make an informed decision about the potential benefits of the plan.
The following tips are designed to help you consider whether an extended warranty or a protection plan is worthwhile. Call your LegalShield provider law firm for assistance reviewing the terms of an extended warranty or dealing with a claim.
- Many products come with a manufacturer’s warranty. Often the warranty offered by the manufacturer is enough to cover any potential defects. Keep in mind, a manufacturer’s warranty will not generally cover accidents, misuse or theft. You may benefit from accident or loss protection plans on certain items like tablets and smartphones, which may be particularly susceptible to accidents or loss and are expensive to repair or replace.
- Consider the duration of the plan. Is the covered item likely to suffer damage or break in the coverage period? Some online research and reviews of the product may offer information on durability and reliability of the product.
- Your credit card company may already offer additional protection. Before making a purchase find out what type of protection, if any, your credit card company offers. When selecting a new credit card, consider the types of coverage they offer.
- Consider the cost of the warranty versus the potential benefit. A warranty costing between 15% and 20% of the purchase price on a product that is generally reliable is not worth the money. Large appliances like refrigerators and washing machines generally have low failure rates within the period that would be covered by an extended warranty. Before making a major purchase, carefully research the product and manufacturer’s reliability.
- Consider the benefit of a warranty when purchasing used products. Used cars, appliances and electronics are often no longer covered by their manufacturer’s warranty and often have a greater risk of failure. An extended warranty may be worthwhile when purchasing an expensive used product.
- What does the extended warranty cover? Some plans offer a wide range of protection for accidental damage, misuse, theft and defects. Make sure you understand what the plan covers and excludes. Is there a deductible for repairs or replacement? Have your LegalShield provider law firm review the policy terms before you purchase a policy. Your LegalShield lawyer can examine the fine print and warn you about potential problems.