Extended Warranties, should you pay for the extra? ~ Pinoy Reviews

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Saturday, May 24, 2008

Extended Warranties, should you pay for the extra?

I can see that some big named appliance stores are now offering extended warranties for their products. With extended warranties, instead of the usual 1 year warranty, you pay extra in order to extend the warranty of your device for three to five years.

Personally, I think it would depend on the coverage of the extended warranty. An extended warranty is like an insurance, you pay the premium which is the extra cost of the extended warranty and the appliance stores would act as the insurer and bears the risk if your appliance breaks down within the coverage period.

While extended warranties would give you a peace of mind, knowing that your high-priced appliance is covered for five more years, if it doesn't, then you would have spent so much more on a regular appliance. If your appliance becomes totally unusable within the warranty period, some appliance stores would give you a new replacement, if that's the scenario, then you would have gained from the extended warranty, however, as most of the case is, some minor repairs during the course of the extended warranty would still not reach that high of the amount of the cost of extended warranties.

Now it would be a totally different case for an auto extended warranty. Automobile repairs are usually costs higher and auto extended warranties would benefit you in the long run as automobiles are usually high maintenance products.