Remember how often you have heard salesmen at retail showrooms recommending extra warranty packages that will cover all repair costs incurred within three years"? Turns out it’s a bad deal, and you won’t gain much, but will lose a lot of money every year.
What to choose from - Manufacturer Warranty or Extended Warranty?
There’s no such thing as double insurance.
You can’t be blamed for believing that every electronic item comes with an extended warranty plan. And car insurance companies are happy to cover all your repair and damage costs. But hang on, there’s no such thing as double insurance. So if you got manufacturer warranty that covers your repair costs for a year, why would you want to dole out a fancy premium for an absolutely useless retail warranty plan will more or less be a waste at least for the first year.
Think again – does your GPS look like it will need repairs?
Frankly speaking, repairs on electronic appliances, such as a GPS, probably won't be needed at all. The best part is, it will either be detected in the first year when you have the manufacturer’s warranty or it will be detected when it’s too late, at the wear out stage, probably when you are itching for an upgrade. Either way you don’t need the extra insurance.
Buy now – insure the extras later
Smart car insurance buyers have a game plan. They will spot a new car at the auto show or a leading dealer, and they will defer the purchase of the extended warranty plan. So the car is in your garage, and you are enjoying the goodies and the gizmos, but hey, ask around. What you will hear will be music to your ears, in most cases; the cost of the repair is generally lower than the cost of the extended warranty plan. So cut your losses without cutting corners, and just say no the extras.