Should You Buy Extended Warranty Info

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

If you are buying a product with a proven track record of durability, the statistical likelihood of needing a major repair is low. should you buy extended warranty

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 Many credit cards (like those from American Express

If a $2,000 engine or transmission repair would be a financial disaster, paying a smaller, fixed amount for a warranty functions like an insurance policy. When to Skip It You won't use it for several years while

Read the fine print; many warranties exclude "wear and tear" items or require high deductibles that make small repairs not worth claiming.

If you plan to keep a car or appliance well past the manufacturer’s original coverage period, a warranty can bridge the gap during the "vulnerable" years.

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.