A. There is a rule of thumb to determine if an extended warranty for cars, iPads, smartphones, homes or any other luxury products is worth it or not -
if the cost of extended warranty exceeds 20% of the cost of the product, chances are - it is not a good investment!
The reasons are simple:
1. Most new products are required by law to provide some basic warranties already.
2. Many common causes of the problem - for example, you dropped your smartphone to the ground and broke it - wouldn't be covered by the warranty.
3. There is usually a deductible which means your actual cost will be higher.
4. All major credit cards already provide some sorts of warranties free, although it's not easy to file a claim with a credit card company for such coverage, see table below for more details.