Dec 11, 2008 1:06 pm US/Eastern
Angie's List: Extended Warranties
If you're buying any electronics this holiday season, there's a good chance you'll be asked to buy an extended warranty. But they're not always necessary.
3 On Your Side's Jim Donovan joins us to explain what you should know before you spend the extra money.
Before you let a salesperson pressure you into making a quick decision, know what you're buying.
People often purchase extended warranties even when they're not sure if they really want or need them.
"So you really need to understand what you need and also keep in mind you don't have to buy the warranty at the time of purchase," said Angie Hicks, founder of Angie's List.
If you do buy it, make sure you get answers about the repair process.
"Who actually is qualified to do the repair work? Where do you have to take the item? Do you have to send it away, take it somewhere? Because most often people want to item fixed efficiently and easily," said Hicks.
Also, make sure you don't already have coverage.
"First step is to review the actual manufacturer's warranty because that might cover the majority of potential problems you might have. Also, if you use a credit card, you're credit card might offer you protection as well,"said Hicks.
Angie's List offers tips to avoid common pitfalls associated with purchasing extended warranties:
· Details: Some manufacturers have longer and better factory warranties than others, so check out the terms first. You might decide to go with Product B over Product A because Product B has a 12 month parts and labor warranty, compared to 90 days for Product A.
· Know your options: Your credit card company might offer an additional warranty if you use their card to make the purchase. If you're buying an expensive piece of equipment, you might be able to add it to your homeowner's policy for less than the cost of an extended warranty. Some retailers even offer free extended warranties.
· Shop around: Different retailers offer different plans. You might pay $100 for an extended warranty at one store and find a similar plan at another store for $50. Also, don't feel pressured to make a decision at the time of purchase. Most extended warranties can be purchased any time before the manufacturer's coverage ends, giving you a chance to try the item out and determine how well it works and the potential for a defect. If you send in the original warranty card, many manufacturers will contact you about extending the coverage before it expires.
· Read the fine print: Do you have to send the product off for repair or will it be fixed in your home? If you have to take the item to a repair center, is there an authorized center in your area? Also, ask your salesperson what happens to the warranty if the store goes out of business.
· Check the terms: Your manufacturer's warranty is free, so avoid paying for extended warranties that start from the date of purchase instead of at the end of the factory coverage. Of the poll respondents who used their warranty, nearly 75 percent said they needed service within the first two years. Also, most extended warranties do not cover accidental damage, so if you're worried about breaking your laptop screen, additional protection might not matter. Consider your homeowner's policy for coverage of accidental damage.
· Research the product: Do your homework and ask yourself some questions before you buy, like; how has this product type performed in the past? Do you have the financial means to repair or replace the item if it breaks? Would you be more likely to purchase a new unit if this one breaks or would you pay to have it repaired? Can you wait for the repair to be made or is this an item you can't live without? How quickly will the technology change and will you be ready to upgrade by the time this one wears out?
Openly Gay Celebrities
Click to enlarge
Mom In Scandalous Sleepover Speaks Out
Stumble It!
Comments