Are extended warranties for electronics worth it?
Consumers when buying an electronics product or device are primarily concerned about the warranty offered by the company. Most countries have certain laws on the extended warranty on electronics as these products are often highly essential to everyday life. Although companies give assurance about the standards of their products, a warranty like GMC extended warranty plans usually give more affirmation to customers when purchasing a particular electronics product.
Mostly, companies offer a one-year warranty for their electronics products, while some other companies may offer a limited warranty for the same amount of time. A limited warranty usually covers parts or labor on a repair only and not both. However, today companies are also offering extended warranties for their products.
The basic principle governing extended warranties is that it stretches out the usual one year warranty to two years, or three and even as much as five years. You will have to pay a premium for a longer warranty, which could be hundreds of dollars, depending on the product.
Are extended warranties worth it?
The answer to this relies on what kind of electronics you are dealing with. When buying a very expensive device that is intended to be used on a daily basis, for a longer period of time like LCD televisions, refrigerators or air conditioning units, an extended warranty would definitely be a good deal.
Conversely, if you intend to buy a laptop, which depreciates fast and becomes obsolete quickly, then a one-year or two-year warranty will be enough. The rule is, the more you use a product and for a longer term, the likelihood of getting benefit from an extended warranty increases.
The warranty also lies on you as a user; if you are careful enough while handling electronics, then you might be content with the one-year warranty. However, if you tend to be harsh and careless, then you should have an extended warranty.
Another useful tip to decide whether a warranty is worth it or not, is to read the reviews of the products first. Consumer Reports offer reliability ratings for different products, which can be of great help. If a product is itself listed as very reliable, you may not need an extended warranty for it at all.