Many personal finance gurus caution against getting extended warranties. Often times, they do lapse with your purchase still robust and working properly making the extended warranty moot and a waste of money. However, I believe that there are certain exceptions.
I have been buying extended warranties for equipment that I expect would be subject to abuse. The more moving parts there is to a machine, the more liable it is to break down. I’ve had quite the experience with motorized appliances such as vacuum cleaners and washing machines to conk out after their standard warranties lapse.
Another one is with my laptops. I personally prefer ASUS laptops since they used to carry two-year warranties. However, due to whatever screwed up reason, ASUS now only offers just one-year warranties. While they typically are robust, my laptops are my money-makers. If your equipment is also that mission-critical, then you might consider opting for extended warranties.
Here’s my hard and fast rule as far as extended warranties go. You just have to be sure that you won’t be paying more than the warranty’s worth. Some warranties seem as if you’re actually paying twice the value of the product. If it’s cheaper to buy a new one after the warranty lapses, then you might want to opt out of the extended warranty. And be clear with what the extended warranties cover. Make sure that they cover both parts and service. If you’re being bugged by your miserly side, just think of it as your insurance policy.
