Is It Worth Buying Extended Warranties
BANGALORE: Are extended warranties worth buying? Or the money is getting wasted. Usually when you visit a shop to buy a product, you might see retailers forcing you to buy extended warranties for the safety of the product being bought by you.
An extended warranty is a form of insurance policy that covers you for repair costs after the retailer’s guarantee has expired and it can be expensive too, since most new goods are made to a high standard.
Extended warranties are of two types, one being presented by the manufacturer of a product and the other being presented by a third party. While buying extended warranty from a manufacturer, they will provide convenience to a consumer and the third party vendors will usually provide extended warranties with improved features.
"Extended warranty, as the term suggests, increases the warranty of an existing purchase beyond the standard warranty timelines with its pre-existing exclusions. Extended warranty is a need-based product which always varies on a case to case basis," said Yashish Dahiya, CEO & co-founder, Policybazaar.com, reports Economic Times.
Though the extended warranty and insurance are two different things, still an extended warranty can sometimes be compared with a rider in a life insurance policy.
"However, the buying of extended warranty is solely a matter of peace of mind just like the rider in a life insurance policy," said Atul Surana, Certified Financial Planner at Mangalore-based Catalyst Financial Planning.
Extended warranties may be a good savings for consumers who use certain products quite often, above their normal use. In such cases, the chances of wear and tear and other warranty based inclusions are usually higher. The advantage of an extended warranty is that it gives good safety for the product if there is any failure or damage of any expensive part.
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