Angie's List: Should you add the extended warranty when you buy electronics or appliances?

1. Get all the facts: When considering buying a warranty have the store employee completely explain the extended warranty to you. Often, they tend to explain only the portion that sounds good. Ask your salesperson what happens to the warranty if the store goes out of business.
    
2. Know your options: Your credit card company might offer an additional warranty if you use its card at purchase. Many expensive items can be added to your homeowners’ insurance policy for less than the cost of an extended warranty. Some retailers offer extended warranties at no cost.
    
3. Check the terms: Your manufacturer’s warranty is free, so don’t buy extended warranties that start from the date of purchase. Buy those that start when the factory coverage ends. Most extended warranties do not cover accidental damage. Your homeowners’ insurance may cover accidental damage, though.
    
4. Consider a third-party provider: These providers tend to cost less for the consumer, up to 40 percent less in some instances, and may have a quicker claims process.
    
5. Research the product: Before you buy, determine how the product has performed in the past. Can you afford to repair or replace it if it breaks? Would you be more likely to replace it anyway, rather than bother with and wait for a repair? How quickly will the technology change and will you be ready to upgrade by the time this one wears out?

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