Are extended warranties worth it?

When we buy something, we want it to last. But if it fails prematurely, we want the company we bought it from to replace or fix it. Unfortunately, that's not always the way things work.

Manufacturers have severely cut the length of standard warranties for numerous products.

If buyers want the comfort and security of a lengthier warranty, they have to pay extra for it. Furthermore, products have become more complex and so are costlier to fix; also, many devices are now portable and thus are more at risk of failure. These and other factors are feeding a significant growth in sales of extended warranties for which consumers pay billions in every year.

But are these plans really worth your money?

I guess the first thing to think about is how many items you are buying. If you buy 10+ computers for a business it may pay to get the warranty as a computer that isn’t working isn’t making you many.

If you are just buying one gadget and your careful with your stuff then you probably don’t need it. If you bash your tech and play and work in non-tech friendly environments then it may be worth it.

Cost is probably the last decider. If you’re buying a $400 laptop it’s probably not worth getting the 3-year warranty as in 3 years it won’t be worth anything. But if you are buying a $4000 TV it may pay to get the warranty depending on how much it is.

Apple and Acer have recently changed their standard warranty to 2-years so maybe your choice should be brand specific.

So overall take into consideration cost, how likely is it to break in the way you use it and the amount of products you are getting and that will give you a better idea on whether you are going to need the extended warranty or not.