If you’ve ever purchased an electronic device or major appliance, chances are you’ve been asked if you also wanted to purchase an extended warranty or service contract. Extended warranties are offered by retailers for an additional cost to customers and provide repair or product maintenance for a specific period of time.
For many retailers, selling extended warranties makes up a large part of their business. It’s an easy way for them to make money because they get to keep a percentage of what they charge for the service contracts.
Before you purchase an extended warranty for your laptop, consider the following questions.
- Does your laptop come with a manufacturer’s warranty? Most technology products already come with a warranty from the manufacturer that covers replacement or repairs within a certain time period, typically one year.
- Will the manufacturer’s warranty overlap with the extended warranty? You may want to forgo purchasing an extended warranty if it will result in duplicate coverage for your laptop.
- Do you plan on purchasing your laptop from a well-known manufacturer? Research online product reviews regarding your laptop’s reliability. If you purchase a reliable product, most problems you’ll encounter will typically occur outside of any extended warranty period.
- If your laptop does need repairs, will they be costly? You should weigh the cost of the extended warranty against what it will cost to pay for the repairs out-of-pocket.
Finally, if you do end up purchasing an extended warranty, read the terms carefully. Many extended warranties contain exceptions and limitations regarding what is and isn’t covered. In addition, some extended warranties may also add on additional charges to have a covered product serviced (e.g., deductibles, fees, and shipping costs).
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2014