The truth about extended warranties, and what to do instead
Keep reading for FREE
Extended warranties are a product. They help the business more than they help the consumer, as no business offers a product at a loss.
A Consumer Report revealed that 55 percent of owners who purchased an extended warranty hadn't used it for repairs during the lifetime of the policy. Those who did use it spent far more on the coverage than they saved on repair costs.
For most, extended warranties are bad investments, because we never use the coverage they pay for.
For a warranty to be worth it,
Instead of buying warranties, consider setting up your own warranty coverage by putting the money aside in an interest-bearing savings account. Then you have full control over the money and can re-purpose those funds.
This strategy will work in your favor more often than it won't. Consider setting aside about half of the cost of the item you bought.
Before accepting an extended warranty, ask yourself:
reading habits, gather your
remember what you readand stay ahead of the crowd!
Save time with daily digests
No ads, all content is free
Save ideas & add your own
Get access to the mobile app
4.7 App Rating
Creator. Beer ninja. Travel lover. Twitter evangelist. Lifelong writer. Zombie expert.
MORE LIKE THIS
Understanding the concept of money is the key to being rich.