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Extended Warranties

Anyone who has purchased appliances, stereos, computers, or similar items knows that many stores will try to sell an “extended warranty” along with the standard one. These warranties, also known as service contracts, are often unnecessary because they duplicate current warranty coverage. The reason merchants are so eager to sell service contracts in general is that they make a handsome profit off those agreements. Service contracts are not illegal and in some cases they may be useful, but consumers are well advised to read the existing warranty before spending unnecessary money on redundant coverage.

Another important point that consumers should know is that if they do wish to purchase a service contract, they are allowed by law to do so up until 30 days from the regular warranty’s expiration date. Stores that claim a “now or never” policy are being deceptive.


Inside Extended Warranties