ColdNoMore |
05-14-2018 06:08 AM |
Consumer Reports position on extended warranties/service contracts.
Don't Buy Extended Warranties - Consumer Reports
Quote:
When you need to repair your car, refrigerator, computer, or a major system in your home, it’s comforting to think you won't have to break the bank to pay for the fix. That’s why so many people are open to the idea of buying extended warranties that cover repair costs from the many companies that sell them.
These protection plans are also sometimes called service contracts or protection policies. But by whatever name, our advice is the same: Skip them.
Extended warranties can have many gotchas, relying on contract fine print to deny coverage for almost any reason. They've become a major source of complaints to the Better Business Bureau and elsewhere.
“Accidental damage may not be covered. And there may be clauses that allow the company to deny coverage if, for example, you don’t follow their instructions for routine maintenance,” says the Federal Trade Commission.
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And yes, there are some folks who have come out ahead...by purchasing an extended warranty.
However, if the company offering the extended warranty wasn't making a profit (often quite large) on them...they wouldn't exist in the first place.
It all boils down to the fact that no one can predict the future and how much someone is willing to spend...for their own peace of mind. :shrug:
Just be sure to read all of the fine print on what is/isn't covered and what level of 'routine maintenance' is required...to maintain the extended warranty.
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