By: Maurice King

Are Extended Warranties Worth It?

Tags: Are Extended Warranties Worth It?

Retailers push them, but before you buy consider this:

Repairs may be covered by the manufacturer's warranty.  There's a good chance the product is covered for at least 90 days and if it is defective, you'll know very soon. Check to see if it's a repair or replace warranty.

Your credit card may have you covered. Some credit cards automatically extend the manufacturer's warranty on products purchased entirely with the card. Sometimes it's a free benefit for using a particular credit card. Check the policy.

They don't make 'em like they used to. True, products don't seem to last. Today, the average life expectancy of a new clothes washer is 11 years. Instead of paying a service warranty, consider putting the money you'd spend on the annual warranty into a designated product repair or replacement fund. Imagine that if you'd spend $100 to $150 a year to cover clothes washer repairs, you’ll be well on your way to covering the cost of a new washing machine after a decade.