I believe that some of you may have encountered the decision on whether to pay extra money for extended warranty on the items such as car, refrigerator computer, stove, washing machine, a major system in home etc.
I used to buy the extended warranty on such items many years back. Now, I do not longer do so. The reason is that the paid monies for the extended warranty can be used to offset the purchase of the next similar item when the existing item is spoilt. Some of the reasons are as follows:
- Extended warranties may have small clauses which rely on contract fine print to deny coverage for almost any reason.
- Accidental damage may not be covered.
- Providers can go out of business, leaving consumers without the coverage they paid for.
- Warranty Work many be unreliable.
- The warranty may not cover what one think it does.
- The extended warranty may overlap manufacturer’s warranty.
- Under the law, it is not even a warranty.