Should You Buy Extended Warranty -

Instead of paying for a warranty, financial experts like those at Kiplinger and Investopedia often suggest putting that same amount into a dedicated . This way, if the product never breaks, you keep your money; if it does, you have the cash ready to cover it.

Many credit cards (like those from American Express or Chase ) automatically extend manufacturer warranties by a year or more for no extra charge. should you buy extended warranty

If you are buying a product with a proven track record of durability, the statistical likelihood of needing a major repair is low. Instead of paying for a warranty, financial experts

Avoid buying the warranty at the moment of purchase for new cars. You won't use it for several years while the manufacturer's warranty is active, and you can usually buy it later. The "Self-Insurance" Alternative If you are buying a product with a

Deciding whether to buy an extended warranty—often called a service contract—depends largely on your personal finances, the reliability of the product, and your tolerance for risk.

For many consumers, the cost of the warranty exceeds the likely cost of repairs. However, it can provide significant "peace of mind" for those who cannot afford a sudden, large repair bill.