The Worth of a Warranty

You’re buying Linda, your bearded dragon, an electric warming rock when the check out boy asks you if you’d like to purchase an extended warranty or service plan. You feel a panicked lump in your throat at your own indecision. Do you even need a $25 two-year warranty on a $56 product? You pretend to weigh the pros and cons before shaking your head “no.” But what if it tears up in a month? What about costlier purchases?

Extended warranties and service plans can have you shelling out over a hundred dollars when you’re buying appliances. These are like insurance plans that, in many cases, cost more than the part you’d need for your refrigerator’s busted door shelf or your microwave’s turntable. Plus, appliances and electronics already have a manufacturer’s warranty just because you made the purchase. It always helps to keep the receipt and to register the warranty that comes with your appliance’s paperwork. This is also true for televisions and many other big purchases. When buying a GE dishwasher, their warranty information states they will replace any defective part of the dishwasher free of charge for up to a year, and they’ll fix your tub or door liner for the lifetime of the product. As with anything, exceptions apply. Electrolux, who makes Frigidaire products, has a limited manufacturer’s warranty that covers repairs for a year after the purchase date. After that year is up, they offer to sell you an extended warranty.

Check out the return policy of the store you’re making a purchase from. Walmart has a 90-day return policy with exceptions. Computers and some other electronics must be returned within 15 days. Best Buy gives customers a similar 15 day window to return most electronic items, unless you’re an Elite Plus member, then you have 45 days. This doesn’t seem like a lengthy amount of time to make sure your new purchase isn’t a dud, but you’ll have the manufacturer’s warranty to fall back on if the item should break. Insignia, Best Buy’s store brand, has a manufacturer’s warranty on their products that lasts a year after the purchase date. You can bring your television back to the store or, in the case of larger TVs, they’ll send a technician out to your home. This doesn’t cover you if your picture box was struck by lightning, but you’ll get defects repaired free of charge.

Vehicle purchases can be a different story when it comes to the extended warranty. While I wouldn’t respond to the shady warranty fliers you might receive in the mail, your dealership could have a good deal. Hyundai, who boasts having “America’s best warranty,” comes standard with a 10 year/100,000 mile powertrain warranty as long as you’re the original owner and can provide proof that you’ve performed regular maintenance on the vehicle, such as oil changes. However, the part of the warranty that covers electronic panels, the radio, and paint only lasts for 5 years/60,000 miles.  If you buy into the Hyundai Protection Plan, which can be added onto your monthly payment, it extends the life of your 5-year warranty out to the same 10 years as your powertrain. Carmax has a 90-day warranty just for making a purchase in most states, but they make it easy to get a longer warranty on a preowned vehicle by offering their Maxcare Service Plans, rolled into your car payment. It must be purchased at the time you buy your car, and the deductibles start as low as $50. This covers repairs for many things, including the transmission and electronics.

When it comes down to it, you need to be a savvy consumer and do your research. Linda’s warming rock and your fridge’s door handle may be easily replaceable without spending the extra money on an extended warranty, but your car’s navigation display or your cell phone screen may benefit from the added protection.