Extended Warranty Service Plans
Forgive me if this subject has been discussed to pieces. Here goes: We currently have the Good Sam Extended Warranty to cover things like major appliances, etc. We have $300 deductible. Would like t...
Forum Discussion
This is how you figure out if an extended warranty is sensible or not:
Look online for the useful life of the items you are looking to place on an extended warranty. For instance the average lifespan of a refrigerator is say 10 years. You subtract out the years its under the manufacturer's warranty. Let's say that it's 2 years thus leaving you w/ 8 years. Now just multiple the cost per year of the extended warranty by 8 years and compare that to the price of a new fridge. IF the extended warranty costs more than the new fridge than it's not worth it.
Look online for the useful life of the items you are looking to place on an extended warranty. For instance the average lifespan of a refrigerator is say 10 years. You subtract out the years its under the manufacturer's warranty. Let's say that it's 2 years thus leaving you w/ 8 years. Now just multiple the cost per year of the extended warranty by 8 years and compare that to the price of a new fridge. IF the extended warranty costs more than the new fridge than it's not worth it.
