Extended Warranty Scams and What to Look for

Extended warranties protect your electronics, appliances, cars, and homes. With extended warranty scams becoming more and more common, it’s important to know the difference between a legitimate warranty company and an extended warranty scam.

What Is a Warranty?

A warranty is a plan that guarantees a device, object, or property from damage. If the device sustains damage during the warranty period, the warranty company will cover the cost of the repairs. There are several types of warranties you can purchase, including electronic, appliance, car, and home warranties. Each warranty has a different set of parameters.

Electronics Warranty

Electronic extended warranties are for smartphones, laptops, monitors, tablets, and other common electronic devices that you’ll find in the home. A good electronic warranty will lay out clear deductibles, plan pricing, and give you access to the terms and conditions before you purchase the plan.

An example of a good electronic warranty is Upsie’s laptop warranty. Upsie has different plans based on the price of the laptop, ensuring that customers only pay for the protection they need. For instance, an Upsie warranty for a $999 MacBook costs $121.99 for two years and $179.99 for three years. The plan includes accidental damage protection and has a deductible of just $25.

When looking through Upsie’s plans, you’ll find clear pricing and deductibles, as well as a list of what Upsie’s plans cover. Upsie’s transparent plans make it so customers never have to guess what the coverage includes.

Appliance Warranty

Appliance warranties protect large and small appliances from manufacturing defects. In most cases, the manufacturer only includes a one-year limited warranty. However, most people expect their large appliances to last over five years and up to ten years. The short length of the manufacturer’s warranty and the long lifespan of the appliance leaves a huge gap in coverage.

By purchasing an appliance warranty, you can protect your large appliance from defects for up to five years. Again, Upsie’s large appliance warranties are a great example of a good warranty. Upsie has clear pricing, no deductibles, and transparent coverage for large appliances, including refrigerators, washers and dryers, ovens, and more.

Car Warranty

Car manufacturers sell their vehicles with a manufacturer’s warranty to protect the vehicle from defects until you drive a certain amount of miles. Customers can also purchase an extended warranty from a qualified dealer.

Car extended warranties offer similar terms as the manufacturer’s warranties and protect the vehicle from defects. However, warranties from different providers often vary in terms of coverage and practicality. It’s important to note that car warranty scams are one of the most common types of warranty scams.

Home Warranty

When you purchase a home, you become responsible for plumbing, lighting, heating, and air conditioning systems. If something breaks or malfunctions, you could end up paying thousands of dollars in repairs. However, if you have a home warranty, the provider will cover the cost of repairs should something malfunction.

Home warranties are different from home insurance. While home warranties cover systems from manufacturing defects, home insurance protects the home and appliances from damage and loss from expected damage. Some examples include fire, flood, or weather damage.

What Is a Deductible?

Many warranties come with a deductible. So, for example, if you have a Macbook warranty from Upsie, you would pay a small $25 deductible before you get the device repaired. However, some warranty companies have higher deductibles. For example, AppleCare’s deductible for the same Macbook is between $99 and $299 for every repair.

Car warranty deductibles and home warranty deductibles also range from $0 to several hundred dollars, depending on the contract. The most important thing to know is that deductibles are incredibly common and are not a sign of a warranty scam.

Some warranty plans may not have a deductible. For example, Upsie’s warranties for appliances don’t have deductibles. In addition, Upsie offers a subscription smartphone warranty for $9.99 a month. A huge perk of the subscription plan is that it has a $0 cracked screen deductible.

Signs of an Extended Warranty Scam

When you purchase a warranty from a company, you should always double-check to make sure that the company is legitimate. This means checking the company’s history, contact information, and location. If you see red flags on the website, don’t make a purchase. Some common red flags include:

  • Inconsistent info
  • Poor grammar and unprofessional website design
  • No clear deductible
  • Hidden terms and conditions
  • No contact info
  • No social media present
  • Low reviews

Some of the most frequent warranty scams come from callers claiming that your car warranty is about to expire. Car warranty scams offer the customer a comprehensive warranty for several thousand dollars. However, the entire thing is a scam. Customers should avoid callers who claim to be selling car warranties. You can also check with your real warranty provider to see the status of your current car warranty.

Another type of scam comes from companies that don’t really offer the coverage they claim. To avoid these scams, thoroughly read the website and double-check the terms and conditions. If you can’t find the terms and conditions, you’ve found your first red flag. You can also contact the company’s customer service team to clarify your questions. However, if you can’t find any contact information, avoid the company altogether.

When it comes to purchasing a warranty, trust your intuition. If something feels off, avoid the company. Focus on companies that are well-reviewed, have social media, and have clear warranty information on the website.

Best Warranty For Your Tech

Finding a good warranty for your tech can be daunting, especially if you don’t know where to start. Luckily, Upsie offers affordable, comprehensive, and transparent warranties for all of your home devices. For example, Upsie has warranties for:

  • Smartphones
  • Laptops
  • Smartwatches
  • Video game consoles
  • TV and home theaters
  • Large and small appliances
  • Headphones and earbuds
  • Power tool
  • Fitness equipment
  • And more

Upsie clearly lists the coverage, price, and devices so customers can find all of the information easily. In addition, Upsie explains the entire warranty process on the How It Works page and has a customer service team available daily from 9 AM to 4 PM CST to answer any questions.

Rest easy knowing that Upsie protects your tech with the most affordable and comprehensive available.

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* This article is over 6 months old and may or may not be updated.