Extended Warranty

Extended Warranty: Is it worth it?

Electronic devices and gadgets have enveloped us like bees around a hive. Our life is increasingly becoming more dependent on machines, and we are purchasing devices, and mishandling them at the same time. It is a frequent cause of worry, as all electronic circuits are fragile, even though tough on the outside.

So, while purchasing, we give a lot of importance to the warranty of the device as an assurance to cover for any damage or mishaps. Hence, buying products with a bigger manufacturer warranty period is preferred.

But what after the warranty period ends?

Most devices usually start facing major issues or breakdown only after the initial 1-2 years. By then, the device is expected to be somewhat exhausted and depreciated, causing the infrequent snags and worries. Unfortunately, by this time, we would have also exhausted the tenure and benefits of the manufacturer warranty. If the breakdown is due to a design flaw, manufacturers may extend free warranties, mostly limited only to certain models built in a certain time period.

This is where the extended warranty is needed to ensure the adequate protection of the device. It expands the warranty period beyond what is offered by the manufacturer.

Before buying an extended warranty, consumers should check what’s covered under the manufacturer’s warranty. There’s always a free standard warranty agreement, and sometimes manufacturers offer extra coverage at no extra cost if you register with them. Armed with the right information, and buying before the expiry of basic warranty helps the consumer select the best suitable plan available in the market. It is smart if you also get the accidental to cover for the drops and spills, since you are essentially buying a device which is mobile.

So again, is it worth it?

The basic rule is – If the warranty cost is greater than 15-20 percent of the product’s purchase price, the user better spends the money on services or accessories that minimize downtime. So, from an economic point of view, extended warranty may sometimes not make a lot of sense.

Alternately, peace of mind is beyond a price tag. So, if you are prone to nightmares of a smartphone emergency or laptop catastrophe, then avoiding through an extended warranty will feel like money well spent.