Friday, April 29, 2016

Are Extended Warranties Worth It?

Extended warranties are for suckers, so I always thought.  Yes, I've bought a few and regretted it.  So perhaps net/net they are for suckers.

Today I love them.  

  • My oven broke yesterday with a "cannot communicate" error. I didn't know oven's communicated, maybe I need to start talking to it.  
  • I went to start my car this morning and it wouldn't start. Charged the battery and it still won't start (I'm guessing the alternator but hey, I'm not good with cars!).

I'll pay $75 for my oven to get fixed no matter what is wrong.  I'll pay $100 for my car to get fixed and no charge for the towing.  So no matter what happens, I'm out $175.  Unless the part is not covered (battery is not covered but that should be not much more than $100).

Even if I pay a little more year round for these warranties than I get in real dollars, the peace of mind of knowing how much it will be is worth something.  Even better, I don't worry if they are ripping me off, that is someone else's problem who will fight for me if something goes wrong.

The last extended warranty I bought just expired on my wife's 2008 minivan. I got more out of the warranty than I paid for that warranty.  It was a hassle though since I bought a 3rd party warranty from warrantydirect.com.  The benefit is I could take my car anywhere. The problem is they were a pain to deal with for the dealer and added delays in the process. They did, however, come through for me and lived up to the contract.

My oven is under warranty with most everything else in my house from ahs.org.  I had to work through customer service on an issue recently for a plumbing problem, but they came through and did the right thing.  My Dodge Journey is under warranty directly with Chrysler which means I have to take it to the dealer (not convenient) but everything is so much easier other than getting there and back (towing is included thankfully!).  I have a lifetime warranty (seriously) and pay $100 per incident for as long as I own my car (rental car and a few other things expire at 100,000 miles).
I bought my chrysler warranty from http://www.chryslerwarrantys.com/ and saved money while getting the same coverage.