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Warranties sold this way are simply not worth the money. So, only consider a warranty on the more expensive products. Most importantly, at least understand what the service experience will be like after the sale before buying additional coverage.
If you're spending $800, $1,500 or $3,000 for an appliance, then it's definitely worth getting one, Triminio says. Others, though, don't believe they're worth the cost. For example, warranties may run for as little as one year or extend up to five or more years, and cost less if purchased for a longer period of time.
Are Home Warranties Worth the Cost? The cost of buying a home warranty is around $300 to $600 a year for a basic plan, with higher prices for more comprehensive plans or if your home is larger than average. In some cases, a home warranty can help you save substantially on expensive home repair services.
If you're spending $800, $1,500 or $3,000 for an appliance, then it's definitely worth getting one, Triminio says. Others, though, don't believe they're worth the cost. For example, warranties may run for as little as one year or extend up to five or more years, and cost less if purchased for a longer period of time.
Extended warranties are rarely worth your money. Products don't break on their own, and when they do, the price of repairs is usually lower than what you'd spend on an extended warranty. But take a moment to ask yourself why a company would offer you an extended warranty. The answer is: because they're profitable.
The warranty doesn't pay for routine maintenance such as oil changes and tire rotation. New cars come with a bumper-to-bumper 'factory' warranty for at least three years or 36,000 miles. Over the years, manufacturers have realized that including a stronger warranty is a good selling point.
The warranty doesn't pay for routine maintenance such as oil changes and tire rotation. New cars come with a bumper-to-bumper 'factory' warranty for at least three years or 36,000 miles. Over the years, manufacturers have realized that including a stronger warranty is a good selling point.
While it may sound like a good idea in theory, extended warranties often come with a high price tag and don't necessarily cover everything that could go wrong. Plus, many people who buy extended warranties never use them. In that case, an extended warranty becomes a cost with no financial return.
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