Q. I have read consumer reports, and they say it is a 50/50 gamble with extended warranties. I have not decided if I will purchase the warrenty or not. Does anyone have a name of a good warranty company?
A. There are two things that make it worthwhile for a company to sell you an extended warranty.
1. They hope the buyer will fail to even remember that he bought the warranty, or they hope the buyer will not comply with the warranty "rules." Almost all warranties require certain concessions to be made on the part of the buyer. Say for instance the warranty states that the car can't be "fooled with." A year later, you install a CD player in the car - warranty voided, sorry.
2. They sell warranties under the assumption that any repairs covered by the warranty will cost less for them than what the purchase of the warranty brought them in the first place.
Buying an extended warranty depends on a few things:
Your past experience. That will usually tell you all you'll ever need to know.
The product in question.
The environment the product will be used in.
The amount of time you plan on keeping the product.
Resale value of the warranty. Can you transfer it to a new buyer, therefore increasing resale value of the product?
Basically, evaluate all those things, make a decision, and go.
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