Extended warranties can be fantastic ways to ensure your investment in whatever products you purchase. However, extended warranties can come with a couple of caveats that can either make or break your purchase. Take a look into these ways to ensure that you can pick the proper extended warranty for you.
Money-Back Guarantee
Sometimes, you might end up purchasing something with an extended warranty that you didn’t look up beforehand. This can be ok if the extended warranty comes with a 100% money-back guarantee. With a 100% money-back guarantee, you’re given a certain period of time in which you can look up that warranty and choose to refund it if you aren’t happy with the terms.
If you don’t find an extended warranty with a money-back guarantee, you could find out minutes after leaving a store that the warranty you purchased isn’t worth how much you paid for it. Just ensure that you are always looking for extended warranties that offer money-back guarantees.
Deductible
Depending on the price of the product you’re purchasing, you might notice that extended warranties come with a deductible. These work exactly as they would if you have health insurance, making it so that you have to pay a certain amount of money every single time you use your warranty. Depending on the type of product, this could be bad or good.
For example, you might purchase an extended car warranty that has a $200 deductible. This deductible could seem pretty high to you until you find out that the repairs made on your car would have cost you thousands of dollars if you paid out of pocket. On the other hand, you could end up paying a deductible that costs around the same amount of money if you just paid for those repairs out of pocket.
You’re also going to want to look if your deductible policy is used per item or visit. If you pick an extended warranty that does it per item, you can end up spending hundreds or thousands of dollars on deductibles as parts end up breaking in pairs. Limiting your extended warranty deductible to just visits ensures that you don’t have to spend too much money on complex problems. Make sure you look around and find an extended warranty that has the right deductible policy for you.