When peace of mind costs more than the repair
November 6, 2025
- Extended warranties make sense on expensive-to-fix items (fridges, ranges, laptops with accidental damage) when the plan clearly covers the parts most likely to fail
- Skip them on cheap, easily replaceable products or when the manufacturer already gives you a long parts/labor warranty youd just be paying twice
- Always read the exclusions and who runs the plan; if it wont cover the big failure or makes you pay shipping/inspection, walk away
Extended warranties are like that Snickers bar staring at you when youre checking out. Theyre super convenient, quite tempting, and often not what you need. But sometimes they actually do make sense. The trick is knowing when an extra year (or three) of coverage is smart and when it just puts money in the sellers pocket.
Below is my plain-English guide on when to buy the extended warranty, when to skip it, and the smart ways to actually use it.
First, what an extended warranty really is (and isnt)
What it is: Its a service contract that you buy separate from the manufacturers warranty that already comes with the product. It can extend how long you're eligible for a repair, give you accidental damage coverage, or even include perks like a loaner device or an in-home repair service.
What it isnt: Dont look at an extended warranty like a magic shield that will protect you from everything. Many plans exclude things like consumables (batteries, filters, pads), cosmetic issues, acts of God, and anything they consider misuse.
Also, be aware that things like deductibles, return shipping, and required inspection fees can chip away at the value.
When an extended warranty is a bad idea
1.Cheapor easy-to-replace items
Unfortunately, many small kitchen appliances and electronics fall into this category. The low price point has made them disposable in recent years.
Im talking about things like toasters, blenders, basic microwaves, entry-level headphones, and even budget printers. A goodrule of thumb is if the warranty costsmore than30% of the replacement cost, skip it. Instead, put that money in the proverbial stuff breaks jar and youll come out ahead in the long run.
2.Products with strong manufacturer coverage already
Some brands already include longer part warranties on critical components like compressors and motors. Or theyll offer first-year bumper-to-bumper plus extended parts coverage. Doubling up your warranty can often be an unnecessary purchase.
Here are some examples worth considering (make sure you register your purchase to take full advantage):
Major appliances: Whirlpool, GE, LG, Samsung fridges/washers/dryers often have 1 year everything + 510 years on key parts like the sealed system or motor. Paying the retailer again to extend year 1 doesnt add much if the expensive part is already covered.
High-end vacuums: Dyson and Shark frequently give 5-year (Dyson) or multi-year (Shark) coverage on the motor. So buying a 3-year extended plan on top of that is unnecessary.
Power tools: DeWalt, Milwaukee, Makita all have solid limited warranties, and some offer 35 years on the tool.
Apple/Samsung devices (first year): Phones, tablets, and most smart watches already get a 1-year manufacturer warranty. If youre not prone to drops, buying a plan from a retailerjust duplicates the first year coverage.
3.Plans with exclusions that make them useless
Beware of buying an extended warranty that doesnt protect you from the biggest risks. Surprisingly, these definitely do exist and people still buy them.
Im talking about a plan for your phone/tablet that excludes the screen or battery. Or a plan for your fridge that doesnt cover the sealed system which is the compressor, condenser, and refrigerant lines. Or a plan for your TV that doesnt cover pixel defects. All hard passes.
Also, watch for maintenance required clauses which translates to we only cover it if you maintained it, and its up to you to prove it.
4. Shady warranty administrators
Walk away if the company behind the warranty is tiny, has no national service network, or requires you to ship heavy items at your expense.
Filing a claim is probably going to be a major headache and theyll most likely stall, deny, or annoy you so badly that you'll give up for the sake of your own sanity.
When an extended warranty can be a good idea
1. High-failure, expensive-labor items
Major appliances like fridges with ice makers, ranges with electronics, and washers with control boards are often expensive to diagnose and fix.
If the extended warranty covers parts and labor past the manufacturer warranty, and lists the control board, compressor, or the sealed system as covered, it can be worth it.
2. Portable electronics with accidental damage coverage
Tablets, laptops, and phones typically dont just break. Instead, they get dropped, spilled on, or even sat on. Damage protection plans fordrops, cracks, and liquid is different from yourbasic defect warranty.
So, if youre buying for kids, college, or field work, a plan like this can easily pay for itself on the first oops.
3.Products you cant live without
If a device is super important to your life and it would be a hardship to not have it, an extended plan can buy you time and often a loaner while you wait for the repair or replacement.
Think things like hearing aids, a work laptop, and a fridge or freezer if you live in a rural area.
4.When the plan price is genuinely low
I always recommend that you do some quick math to figure out the risk vs reward.
For example, if your $1,200 oven has a well-known $450 control board failure and your extended plan costs $119 for three extra years, Id consider that to be reasonable insurance. Especially if there was no plan deductible.
How to actually use an extended warranty (and win)
Build a repair file on day one
Im a huge proponent of creating a file folder with the serial number, purchase date, receipt, warranty PDF, photos of the unit, and a list of any issues (even small ones) with dates.
When something fails, youll be able to submit a solidclaim in minutes and youll find that administrators love organized customers.
Speak the adjusters language
Try to use precise terms when filing a claim. Spend a little time researching the problem so you can use the proper term.
Examples include control board failure, sealed system not cooling, pixel defect cluster, or hinge assembly cracked. Ive found that when youre vague, and just say its broken, youre inviting delays.
Dont be afraid to ask for a full swap
Many states have a lemon law in place on major appliances which entitles you to a replacement or refund after a certain number of repairs have been attempted.
Be sure to document all of the work done and be in communication with the repair company and you might just score a free replacement. Its often the quickest way to get on with your life.
Dont miss maintenance proof
If the plan requires regular maintenance (espresso machines, HVAC add-ons, certain appliances), keep basic logs and photos of what youve done. A 30-second note can be the difference between being approved or denied.
