These days it seems as if everything comes with some form of extended warranty. The salesperson wants you to purchase that warranty "just in case" something were to happen. But how do you know that the warranty is a good deal? Is it a case of luck on whether or not the item you purchased will tear up and leave you holding an expensive repair bill? Perhaps it is a case where you pay out hundreds of dollars in extended warranty only to never need it. Extended warranties are funny that way. On some products we automatically make that extra purchase but on others we skip the warranty. In this article we will cover what an extended warranty is, what products are covered, and even whether or not you should invest your money in an extended warranty.

What is an extended warranty?

An extended warranty is also known as a service contract or service agreement. It is a written agreement that states that if the merchandise is damaged it will be fixed or replaced without any cost to you. The extended warranty is a guarantee for when the regular warranty either does not cover a certain product or you want it for a period of time that is longer than what the original warranty covers.

What types of products are covered by an extended warranty?

Many electronics are offered with an extended warranty. Items such as digital cameras, DVD players and camcorders come with a basic warranty but you are usually asked if you would like the extended warranty. One big purchase that sometimes comes with an extended warranty is an automobile. This is probably one of the biggest purchases that people make that are associated with extended warranties.

What is covered by an extended warranty?

Most extended warranty claims cover any mechanical malfunction within the years that it is covered. This includes parts and labor. If the, for example digital camera, cannot be repaired you are entitled to a new one of equal value. You have to read your warranty carefully though. There are some circumstances that can negate your warranty claim such as the electronic item becoming wet or damaged due to something that you did. So before you agree with the salesperson about purchasing an extended warranty make sure and ask to see the contract first so that you will know what you are getting in to.

Should I keep my receipts and all the paperwork for the extended warranty?

You should always keep your receipts and the associated paperwork that comes with your merchandise. If something were to go wrong you will have to show proof that you purchased the item as well as fill out the warranty claim forms. Far too often people throw away the paperwork that comes with their electronic items thinking that they will not need them. On that paperwork is the instructions on how to file a warranty claim should the item become damaged or stop working.

If something were to happen how do I make an extended warranty claim?

The first step is to locate your warranty paperwork. This is the time to carefully review what your coverage is as well as what is necessary to fill out a claim. If the paperwork seems confusing about what is covered and what is not covered you can always call the customer support center. Make sure you get the person's name you are speaking with and ask them to explain the warranty to you in detail. From there you will have to fill out a claim form and send in proof of purchase such as your receipt. The warranty information should tell you where to send the merchandise or give you a list of repairmen in your area that service those machines for the warranty company.

Will I be dealing with the manufacturer or a separate company?

That depends on the manufacturer and the item that has stopped working. Many manufacturers use an outside company to handle all of their warranty claims. This can be frustrating for the customer because they are forced to deal with someone that did not make the sale. It can also be difficult juggling between the two companies. A typical example of a manufacturer or supplier not handling the warranty or claim information is cell phone providers. Most use an outside company to handle all of their warranties and claims.

If I had a cell phone or electronics covered by an extended warranty does it include if the product were to become wet and stop working?

Most extended warranties do not cover when an item is damaged due to the user's fault. This includes getting the cell phone or electronics wet. They will protect against faulty equipment wiring and internal pieces being broken but if they determine that it was the user's fault you could be charged for the repairs and your claim denied. That is why it is so important to read through your warranty information carefully to see what is covered and what is not covered by the extended warranty.

What does an extended warranty not cover?

An extended warranty does not cover you dropping the equipment and in most cases it does not cover the equipment getting wet. If you are at fault for the equipment ceasing to work most warranties are void. Some car extended warranties will only cover certain engine parts. It may not cover faulty brakes or the air conditioning unit going out. Once again it is very important that you have the details of the extended warranty carefully explained to you so that you know what is covered and what is not covered by the warranty agreement.

Why does some consumer advocate groups speak against getting an extended warranty?

The reason some consumer advocate groups speak out against purchasing an extended warranty is because most of the time the item is not susceptible to damage and you are only lining the salesman's pocket. They usually get a commission based on how many extended warranties that they sell. Many times the cost of getting the item repaired is going to be far less than what the extended warranty costs.

What products does consumer advocate groups recommend purchasing extended warranties on?

There are two products that consumer advocate groups recommend purchasing an extended warranty on and that is digital cameras and projection televisions. These are two pieces of equipment that usually need repairs often and the repairs are often expensive. You have to factor in how much it would cost to repair the device with how much you are paying for the extended warranty. If repairing the device is relatively cheap compared with the cost of purchasing an extended warranty then you have your answer about whether or not to have an extended warranty at all.

Just enter your name and email to get your FREE Extended Warranty gift immediately ! Name:                  Email Address: Your name and email address will not be sold, shared or disclosed to anyone. We promise to respect your privacy.

Technorati Tags: Extended Warranties, Common Extended Warranty Questions