Don't Waste Your Money: When to buy extended warranties

(Toledo News Now) - Ever buy an extended warranty? For something inexpensive it is easy to say no, but what if it is for something more expensive? There are times when it is best to say "no" and times when it is better to say "yes."

Next time you buy a new car, TV, or even a toaster, the sales clerk will probably ask if you want to buy an extended warranty. Should you? Will it really protect you? Or is it a big waste of money?

We have all received the pitch in an appliance or TV store. We have all received a postcard saying our car's warranty is up and it is time for a new one. However, a new report in US News and World Report lists several reasons why you should not buy an extended warranty in most cases.

Among them:

  • The original warranty is sufficient.
  • Extended warranties are filled with exclusions.
  • Your gadget will be worthless when it finally breaks.
  • Most items do not need repair the first few years.
  • Your credit card company may offer better protection, such as second year of coverage for free.

From the doesn't that stink file, one instance where you may wish you bought an extended warranty is if you drop your smart phone and it breaks.

According to US News, with a smart phone costing $300-$500, coverage through companies, such as SquareTrade, may be worth considering.

If you cannot sleep at night without having an extended warranty, just make sure you read the fine print before you sign on the dotted line. If you find a lot of exclusions and reasons they may not pay, such as you dropping an item, it may be a case of don't waste your money.

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