My husband and I are typically frugal people. We don’t make a ton of purchases and we try to shop around to get a good deal on an item. I will say, however, that when we do make a purchase together it’s usually a big one as both of us enjoy messing around with electronics like video games.
Within the past year we’ve also had to buy a new washer and dryer set as our old one was breaking down and didn’t clean our clothes properly. With these purchases, we’ve been offered extended warranties. You know how it goes- the salesperson usually gives you a list of what could possibly go wrong and what the warranty covers. They tell you how wonderful it is and how if your purchase breaks down, it will be repaired or replaced ASAP.
If you turn it down withe the sales person, many electronic stores offer a warranty as you go to the register to buy your appliance or television. They really push getting a warranty.
Can Warranties Provide You with TV Insurance?
My mom usually buys the extended warranty and we usually pass up on the offer. The big question for many is, are warranties worth the price or are they a needless drain on your wallet? Besides looking at the numbers, I would recommend examining other possibilities than warranties.
There is a way to increase your protection without spending an extra dime.
Did you know that your credit card can provide you with an extended warranty if you make a purchase with it? It’s true. Some credit card issuers will extend the warranty for a purchase for an additional year at no cost. You simply have to follow their procedure and file a claim. the best time to call is before you make the purchase to see what’s covered and if the claim process is doable for you.
Alternative to Electronic/Appliance Warranty
Have you ever considered self insuring your big purchases like electronics and appliances? It can give you more control over your money.
The big advantage of being self insured is having the freedom to use your money as you please. You may only need to use the warranty money for an item or two and still have money in the bank. Perhaps you make some great choices and don’t use the money for repairs and instead use it for your next purchase. Have the money saved transferred to a high interest savings account and see it grow.
Making Sure You Have the Right Amount Insurance For You
I’m hoping you can also share your own stories about warranties and whether they worked for you. Do you get extended warranties on your electronic and television purchases? How much did it cost you? How many times have you had to use it?
I’m happy to be wrapping up this insurance series. It’s been informative to me as my husband and I get our own finances squared away and refined, especially with a baby on the way. If you’re getting your insurance needs squared away, here are some posts on GPT to help you out:
- Life Insurance: When and Why
- Health Insurance and Your Needs
- Disability Insurance: Is It a Waste of Money for Young People?
- Buying Rental Insurance
- Travel Insurance: Do You Need It on Your Next Trip?
- How to Negotiate Your Home Insurance Like a Pro
- Get the Best Deal with Your Car Insurance
Photo Credit: Alan_D