Are Extended Warranties Worth It?
965 views · Published 22 February 2016 · 2:45 · Indexed 6 November 2026
Channel: Utah State University Extension · 2016 · Howto & Style
Amanda Christensen, Utah State University Extension, Morgan County .............. Should You Consider an Extended Warranty? Hi welcome back. It’s Amanda Christensen with Utah State University Extension and today I’m talking through some thoughts on extended warranties. You’ll notice especially around this time of year as you purchase those Christmas gift items, you’ll be going through the checkout and the cashier will try their very hardest to sell you an extended warranty. You can think of an extended warranty just like insurance. It’s designed to fix or replace an item, should it be damaged, broken, even lost or stolen. You would typically purchase insurance to limit your risk on big-ticket items, ok? Such as a car, or a home, so when it comes to Christmas gift-giving, sometimes extended warranties are worth the purchase and sometimes they are not. On smaller items, it is often not cost effective to purchase an extended warranty. In fact, the profit margin that the store makes on extended warranties on low-cost or smaller items is huge. So, don’t let a cashier talk you into buying an extended warranty on smaller items, such as a Blu-ray, a DVD, an iron, a crock-pot, ok? Things of that nature. But what about bigger items? Is it worth buying the extended warranty on some of the larger purchases that you buy this holiday season? The answer can be yes. First, does the item come with a manufacturer’s warranty? Second, how long does that manufacturer’s warranty last, and what does it cover? If you do decide to purchase an extended warranty on an item, be sure to read the fine print and keep the receipt or proof of purchase of that item. Also, be sure to do the follow-up if necessary. If they require you to mail something in or register your products for the warranty to be valid, be sure to go straight home and do that. Otherwise, you’ll forfeit the extra money that you paid, and the warranty is for not. Understanding how extended warranties work can help us become more consumer savvy as we’re out their making out big purchases this holiday season or any time of year. Thanks for watching. If you have any questions further about extended warrantied, leave them in the comments below, and I’d be happy to respond. Also, I’d love to hear from you on social media if you have any ideas for videos or questions; I would do my very best to answer them. Thanks for watching. I’m Amanda Christensen with Utah State University Extension. We’ll see ya next time, bye! .............. Connect with USU Extension! Facebook - http://facebook.com/usuextension Twitter - http://twitter.com/usuextension Pinterest - http://pinterest.com/usuextension LinkedIn - http://linkedin.com/company/usuextension Google+ - https://plus.google.com/+usuextension
