Ugh, this question gets me every time no matter where I am & no matter what I am buying. The very nice salesperson does his/her best to make me feel like an idiot if I don’t purchase it but my head tells me that I’m not supposed to – right?

Since I’m admittedly no expert, here’s what I’ve found from others who are more knowledgeable than me in this area. Mark Huffman from ConsumerAffairs.com offers the 5 Reasons NOT to Buy An Extended Warranty:

  1. They Usually Cost More Than They’re Worth.
  2. Warranty Work May Be Unreliable.
  3. The Warranty May Not Cover What You Think It Does.
  4. Warranty Underwriter May Go Out Of Business.
  5. The Extended Warranty May Overlap the Manufacturer’s Warranty.

Gary Altunian from About.com poses the following questions about electronics & their extended warranties.

  1. Does the Product have Moving Parts or is Delicate?
  2. Is the Product Based on New, Unproven Technology?
  3. Is In-Home Service Provided?

Specifically for auto extended warranties, there’s a considerable amount of research online, and Stacy Johnson from WiseBread had pulled together a great article that puts it all in one place. Overall it seems like a gamble and by buying an extended warranty you are essentially betting that your item is going to break & the companies are betting that it won’t. Who’s got more stacked in their favor?