Advice: Extended Warranty

[jpream]

Please read, this may help you save some money.. Yeah, it's a bit long but worth it. (And this is NOT an advertisment)

I've seen numerous postings and reviews with people saying that they purchased an Extended Warranty for a product they had just purchased. These Extened warranties can cover your product (mostly on a limited basis) for up to 5 years, but cost hundreds of dollars depending on the value of the covered product.

You may be better off insuring the product through your own insurance company!! Typically, your insurance company can add a rider to your policy that covers the product from breakage due to mfg defect (even if out of original warranty), breakage caused by an accident, and loss due to theft. This is MUCH more that most extended warranties will cover. And the cost is almost always cheaper..

For example: I had purchased a Nikon camera and a pile of accessories, total worth was about $1500. Through my insurance company, a no deductable add-on to my policy which covers a loss due to anything other than purposely smashing it with a hammer, was just $1.15 per $100 each year. So for a total of $17.25 each year I got coverage FAR beyond what almost ANY extended warranty can provide.

Do the math, $17.25 a year for 5 years is only $86.25!! If your curious how much I saved, look for an extended 5 year warranty for a camera worth $1500. And my coverage will continue as long as I choose, as long as I own the camera.

So do your self a favor and check with your insurance company BEFORE purchasing an extended warranty. It is definately worth a call..

[foodbiz]

I don't know about this... I always have a harder time dealing with an INSURANCE company than a Manufacturer...

[Beemer]

It is food for thought though.
Thought provocative folks are always welcome around here jpream.
Welcome to Techimo.

Cheers!

great info, but how long does it take to get your product back or the money to cover the charges from the insurance company?

i just paid 300 bucks for 3 more years of warranty for my laptop.

that means if something goes wrong, they will send airborne express out to pick up my laptop, over night it, repair it, then overnight it back to my door.

although coverage by theft or accidents sounds great

[elroy]

I bought a policy through my homeowners to cover a saxaphone when my daughter was in high school. It cost about $4 a year. But I was under the assumption it only covered theft or vandalism not breakdown/mechanical failure. Thanks for the info, might come in handy.

[Nighthawk]

I think the rider I've got on my computer/palmtop only covers theft or damage (fire, flood, etc). I'm sure it wouldn't have given me a new palmtop like my Best Buy extended warranty did when the screen started getting flaky.