Nowadays, extended warranties are mostly offered on everything. From furniture to appliances and vehicles. Are they worth what you are paying for it?
To put it simply, these warranties are insurance policies and are mostly overpriced.
Take car warranties for example. Problems, if any, usually arise during the first year and these are covered by the dealer and/or manufacturer’s warranty. After that, it’s mostly due to wear and tear, which the extra warranty does not cover anyway.
The same scenario exists for other major purchases like appliances and furniture. As we pointed out in tip number 1, a dollar saved is similar to 2 dollars earned.