Why You Should Steer Clear of Extended Warranties

If you still want to purchase an extended warranty, follow these tips.

View Details

Understand the manufacturer's warranty before making a purchase. Federal law requires that you have access to the manufacturer's warranty before you decide to buy. When you read it, note how long the warranty lasts (typically 90 days or so), what it covers, and whether the company will repair or replace the item or refund your money.

Some manufacturers will also repair a product after the warranty has ended simply because it’s good customer service, so it’s worth contacting the company should a problem arise. Keep in mind that some extended warranties simply duplicate the coverage already offered by the manufacturer's plan.

Check to see whether you already have extended coverage through a credit card. If you bought the product using a credit card, check to see whether the card issuer extends the warranty. Many do for a period of one year or more. If you’re not sure whether your card provides such a perk, call customer service to find out. Or use an app like Sift, which will let you know before your make a purchase with a specific card how long the warranty will last.

Read the fine print. Extended warranty coverage may not be as comprehensive as you think. Extended warranties often include lots of exclusions that make the service less useful. For example, coverage may not include accidental damage, or companies might be able to deny a claim if you haven’t followed their routine maintenance instructions, according to the Federal Trade Commission.

The warranty may also require you to use a specific service provider or repair shop for service. “You may have to take the product to a location that isn’t convenient, especially if you don’t live in a big city,” says Richard Alderman, director of the Center for Consumer Law at the University of Houston. “You may have to ship it somewhere, even though shipping isn’t included.”

About 1 in 5 consumers who use an extended warranty is dissatisfied with the repair, and service can take a long time or require multiple tries to get it fixed. There’s also the risk that the warranty provider will go out of business.

Consider how much repairs would cost. Extended warranties cost an average of $126 for large appliances and $21 for small appliances. It costs just $26 more to repair the items without a service plan (see Consumer Reports' extended warranties buying guide). While rare, some warranties require you to hit a deductible before they’ll cover your costs or charge fees for each claim.

Repairs, however, aren't usually that expensive. Because the financial risk of needing a repair without an extended warranty is relatively small, it’s not a huge risk to go without one.

Buy higher-quality products. Research the items you’re planning to buy before making the purchase. Be sure to understand the manufacturer’s warranty that comes with it. High-quality items may cost more but they’re less likely to break, making it an easier choice to decline the extended warranty. You can learn more about a product's reliability by reviewing Consumer Reports' ratings and product reliability information online.

Also consider where you plan to purchase the product. Look for a retailer that will take returns on defective items. Stores with the most generous return policies will accept broken items, even years after the original purchase. “Not every company is out to get you,” says Bob Hunter, director of insurance for the Consumer Federation of America.

Link to Tehu

Between video doorbells, security cameras, smart thermostats, water leak detectors, routers and more, you can easily spend thousands of dollars when setting up your smart home.

Before you drop the equivalent of a mortgage payment on smart home devices, there are a few things you should know. Here are three tips to make sure you don't spend too much money.

Figure out your needs in advance

A smart home can mean lots of things, depending on who you're asking. For every device in your home, there's now a "smart" version, from the humble lightbulb to a refrigerator that can let you know when your milk is expiring.

Unless you want to go all Jetsons-style in your home, chances are you don't need to replace every appliance with a smart version.

Before buying a single device, think about what you want to achieve. Do you want to save money on your heating and cooling bill? Do you want to keep tabs on your property? Or maybe you just want some funky lighting.

Identifying the problem you want to solve in advance will help you know which devices you need to buy, and which you don't.

Look for budget items — but make sure they're reliable

For every type of smart home device, there's usually a premium version as well as a budget model. For example, you can get security cameras with 4k resolution, advanced tracking, and a whole host of other features, but they might run you $150 apiece. But, there are also models with lower resolutions that cost less than $50 each, which might suit your needs just as well.

Similarly, the best premium smart thermostats cost around $250, but you might not want or make use of all their features, in which case a model that costs half as much will work just fine for your home.

Take a hard look at all of the features a given device offers, and decide if they're right for you, or if you can go for a budget model instead.

Don't pay for subscriptions if you can avoid them

One of the hidden costs of smart homes are subscription fees, most notably for security cameras and video doorbells, many of which will require you to pay a monthly feee to save video and access all their features.

Fortunately, there are plenty of models out there that do not require you to pay for a subscription, so it's worth checking them out first. Your wallet will thank you.

The company is the world’s best Robot Protection Covers supplier. We are your one-stop shop for all needs. Our staff are highly-specialized and will help you find the product you need.