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Extended Warranties

         The extended warranty can be a good thing. On bicycles, electronics, car seats, and so forth, they can be an excellent protection. They usually offer complete replacement or refund for a stated period of time. You need to consider the manufacturer's warranty, the seller's policy, and how you have to recover any loss or damage. You also need to consider who is going to be using the product you are buying and how it will be used.

         If you have to pay for shipment back to the factory, you may lose the value. If they offer service to your home or reimbursement for shipping, it may be worthwhile. If you can't keep up with paperwork and phone numbers, it may not be for you just because you're too disorganized. Most sellers have a 90 day warranty, with less for electronics, anywhere from 15 to 30 days.

         If you are the only one who will ever use the product and are not accident prone, you probably don't need the warranty. On the other hand, if you know you can knock over noise machines or radios on occasion, you might want to be able to replace it two years from now. Around children you probably want a warranty. Certain toys you know are going to be broken within a few months, so you don't want to pay an extra $10 for coverage. On the other hand, a bicycle rusts, the seat wears out, you probably could benefit from the warranty. They don't usually cover flat tires or dead batteries (as in a child's motor car). Sleeping bags and theme blankets do not need warranties.

         I-pads, toddler computers and learning devices, probably should be warranted. Home printers, especially if other family members will be using it, need coverage. A home office that will use a printer every day will need a warranty, as long as every day wear and tear is included. Swim pools and swing sets could benefit. Power tools and lawn equipment are another example.

         So how does the company that sells these policies make a profit? They bank on people forgetting that they have the warranty. Or that they don't want to go to all that trouble two years from now. Or the item is truly of excellent quality and has no mishaps. To get the most out of the warranty once purchased, the buyer should register the item online or over the phone. That becomes your backup if you lose the receipt and pamphlet. Keep a notebook or file of such things with the date purchased. Review that folder or notebook quarterly at least. When you see the deadline is almost there, examine the product. Is the paint faded? Is it still working correctly? Is it sluggish or torn? Make your claim before the deadline and get a replacement product. Your kids have outgrown it? Get it replaced anyway and give as a gift to someone else.

         Understand these warranties are not upheld by the company that sells it, except car dealers. It's a third party. So you need to keep those phone numbers or websites.Keep your receipt at least as long as the retailer's return policy is good. Once you're past the 15 or 30 or 90 days, even a receipt won't help. But they make returns a lot easier up to that deadline. That's your responsibility as a consumer.