What to Know About Extended Warranties Before You Shop

Nobody wants to lose their investment in appliances or electronics because of unexpected malfunctions or damages. Meanwhile, a high-quality extended warranty can give consumers a chance to plan and budget for protection that they may need weeks, months, or even years after they make a major purchase.

Even though most retailers offer extended warranties at the time of purchase, good shoppers can find alternative protection that offers a better value. The types of incidents providers cover, how long they last, and even the effort it takes to file and settle claims can vary considerably.

That's why consumers shouldn't make impulsive decisions about which warranty to buy. Learn more about how warranties work, what to look for in a protection plan, and where to buy the best coverage.

Electronics, appliances, and many other products generally come with a manufacturer's warranty. Sometimes, people also refer to these as a factory or limited warranties.

This list highlights the reasons that some companies may call them limited warranties:

In contrast, an extended warranty will extend the product's protection, and some also provide coverage for issues caused by accidents. Sometimes, manufacturers or retailers sell their own extended warranties; however, extended warranties are also available from third parties.

According to Investopedia, extended warranties work similarly to insurance contracts. The fine print spells out what they cover, how long they last, and how a customer can make claims to get their products repaired or replaced. As with insurers, warranty providers hope to make a profit on the deal, so they use past claims data to make predictions about typical kinds and amounts of claims.

Beyond the basics that apply to all protection plans, details can vary, depending upon the type of product and even the protection plan. For instance:

Other details that vary can include the way customers can get service and the kinds of damages they will cover. For example, a warranty could provide local or even in-home service but another one might require mailing malfunctioning products to a service center in another city.

How do you know that your extended warranty will actually step up and cover problems when they occur? The FTC has published some advice on its official website:

Upsie provides an affordable, transparent, and no-hassle alternative to the warranties retailers offer at the time of purchase. As an example, for major appliances like washing machines and refrigerators, the purchaser can wait up to eleven months to buy and activate their two-year to five-year protection plan. Upsie will send certified repair techs to the home to perform repairs for all claims.

For another example, compare Upsie vs. Best Buy warranties for mobile phones. Best Buy restricts repairs to their own Geek Squad repair centers. In contrast, Upsie uses a large network of certified repair shops, so customers can make choices about where they get their phones serviced. They can even request to go to Apple’s Genius Bar. Customers can purchase an Upsie smartphone subscription warranty for new and old smartphones in good working condition.

For all products covered by Upsie, customers can rely upon friendly and helpful guidance from the 24/7 claims service center. Helpful reps will help determine the best solution, which might include local or mail-in repairs (or even product replacements). Find out more about how Upsie works to learn why Upsie provides a better value.