Extended Warranties Aren’t All Bad

If you read enough personal finance, you will find that nearly all the experts agree on one thing:  don’t buy the extended warranties offered with products such as televisions, computers, dishwashers, etc.  I am going to have to disagree – I am gradually turning into a big fan of extended warranties.

In the last month, I have had Sears replace my four year old fridge for free, due to the extended warranty I purchased.  And last night, my cat somehow popped two keys off of my laptop in some odd way that I can’t get them to pop back on.  Thank goodness I sprung for the extended warranty on this, too.  Yes, the fridge warranty was four hundred-some dollars, but it replaced a four year old $1600 refrigerator.  And the computer…I can’t remember the exact amount of the warranty, but it was a heck of a lot less than the cost of a new computer.  (I’m hoping they’ll fix all the other keys I’ve worn out, also.)

I’m curious your experiences with extended warranties.  Yes, there are always those extended warranties that you buy but never use.  However, I have found that I use them well over 50% of the time that I buy them.  What do you think?

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.
  • loosethoughts

    I think most appliances are now built in with some kind of redundancy. Generation after generation, North Americans are loosing the value of the dollar. My TV, an appliance that would usually last 10+years, broke down after a 18 months of moderate use. The warranty ended after 1 year and now I have a 47 inch picture frame. An extended warranty would have helped, but do I really need to pay $400 more just to ensure my TV would last at least 3 years?

  • CWO4(RET) Kent D. Cr

    Certainly there are many cases in which the consumer makes out on these extended warranties but they are few and far between. Extended warranties are just like any other insurance. The insurance companies win. They make a large profit since the great majority of consumers never use the warranty. There are also good administrators and poor administrators. A poor one can make it difficult to obtain the service you deserve. If you decide to buy an extended warranty make sure to read to fine print because that is exactly what you are entitled to, nothing else.

  • I had to replace three Craftman lawn

    mowers from Sears that had the regular

    warranty on them. Sear replace the

    mower without and trouble with a new

    on that was almost a year old.