PFwise.com
Search
  • Home
  • Blog
  • Tools
  • Know-how
    • Insurance 101
    • Annuity 101
    • College Planning
    • Real Estate
    • Retirement Planning
    • Smart Investment
    • Stock Ideas
    • Tax Planning
  • About Us
  • 中文
  • Resources
    • Personal Finance Reading List
    • Financial Aid Resources
    • Personal Finance Calendar
    • Retirement Planning Calendar
    • ETF list
    • Financial Glossary
  • Newsletters Archive

Is Extended Warranty Worth it?

1/21/2014

0 Comments

 
Picture
Q. Should I spend $100 to buy an extended warranty for my new smartphone?

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.

Program What It Covers What's Not Covered Product Exclusions How to File a Claim Cost
MasterCard Extended Warranty Doubles the manufacturer's warranty or a purchased service contract, up to 12 months. Covers repairs or replacement up to $10,000 Normal wear and tear; damage from power surges; failures covered by product recalls; shipping costs; losses due to natural disasters; mold damage Cars and boats; software; antiques; pets; plants; perishables; consumables; refurbished or used items; data storage media such as DVDs; real estate or permanently installed items such as ceiling fans Call 800- MC-ASSIST within 30 days, then submit a signed claim form, credit card receipt and statement, itemized purchase receipt, manufacturers' warranty, plus an itemized repair estimate Free
Visa Extended Protection Doubles the manufacturer's warranty up to 12 months. Covers repairs or replacement up to $10,000. Maximum annual benefit: $50,000 Normal wear and tear; items lost during delivery; theft or damage from baggage handlers; losses due to natural disasters Cars and boats; software; antiques; pets, plants; perishables; consumables; medical equipment; used items; items purchased for resale; real estate or permanently installed items like ceiling fans Call 800-882-8057 or go to Visa.com/eclaims within 60 days. You'll need a claim form, your card receipt, itemized store receipt, manufacturer's warranty, any other applicable warranty, repair order, a description of the item and its serial number Free
Discover Extended Warranty Doubles the manufacturer's warranty or a purchased service contract, up to 12 months. Covers repairs or replacement up to $10,000. Maximum annual benefit: $50,000 Damage not covered by the original warranty; repairs at an unauthorized facility; normal wear and tear; power surge damage; shipping costs Cars and boats; services; plants; software; perishables; used or refurbished items; items purchased for resale Call 800-DISCOVER within 45 days and submit a claim form with the store receipt, Discover statement, manufacturer's warranty, any purchased warranty, and proof that you've repaired or replaced the broken item. (They'll reimburse you.) Free
American Express Extended Warranty Doubles the manufacturer's warranty up to 12 months. Covers repairs or replacement up to $10,000. Maximum annual benefit: $50,000 Damage from natural disasters or power surges, unless covered by manufacturer's warranty; failures covered by product recalls; shipping costs; maintenance; damages to computers or their components covered by a purchased service contract Motorized vehicles; motorized devices used for landscaping, demolition or construction; real estate or motorized devices installed in a building; plants; pets; perishables; consumables; items purchased for resale Call 800- 225-3750 or file at AmericanExpress .com/ onlineclaim within 30 days. You'll need to provide your card receipt, original store receipt, original manufacturer's warranty, service contract, a repair estimate and the defective item Free

0 Comments



Leave a Reply.

    Author

    PFwise's goal is to help ordinary people make wise personal finance decisions.

    Archives

    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013

    Categories

    All
    Annuity
    Book Reviews
    College Finance
    Finance In Formula
    Financial Scams
    For Entrepreneurs
    Healthcare
    Insurance
    Investment
    Miscellaneous
    Real Estate
    Retirement
    Savings
    Savings Ideas
    Stock-ideas
    Tax
    Tax-related

    RSS Feed

Copyright © 2013 - 2022 PFWise.com, All Rights Reserved. 
IMPORTANT DISCLOSURES
PFwise.com does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that any material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
About Us | Contact Us 
中文