Definition

An extra service plan that covers repairs or replacements after the manufacturer’s warranty expires. It can provide peace of mind but may not always be necessary.

What to consider

  • Decide if the extra cost is worth the protection for your high-value items.
  • Review what exactly is covered before purchasing.
  • Consider your past repair history to inform your decision.

Real world scenarios

  • Helen buys an extended warranty for her new laptop, confident that repair costs won’t blindside her if issues arise later.
  • Upon purchasing a fridge, Omar debates the extended warranty’s price. He ultimately decides the peace of mind is worth it.
  • Arthur checks the manufacturer’s standard coverage first, ensuring he isn’t paying twice for overlapping warranties.

Related terms

Insurance & Financial Protection