Should - You Buy Extended Warranty

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.

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

If you are buying a product with a proven track record of durability, the statistical likelihood of needing a major repair is low. If you plan to keep a car or

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

Instead of paying for a warranty, financial experts like those at Kiplinger and Investopedia often suggest putting that same amount into a dedicated . This way, if the product never breaks, you keep your money; if it does, you have the cash ready to cover it.

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.