Should You Buy Extended Warranty [2026]

Instead of paying for a warranty, financial experts like those at Kiplinger and Investopedia often suggest putting that same amount into a dedicated . This way, if the product never breaks, you keep your money; if it does, you have the cash ready to cover it.

Items with complex electronics or proprietary parts (like electric vehicles or high-end appliances) can be prohibitively expensive to fix out of pocket. should you buy extended warranty

If a $2,000 engine or transmission repair would be a financial disaster, paying a smaller, fixed amount for a warranty functions like an insurance policy. When to Skip It Instead of paying for a warranty, financial experts

Avoid buying the warranty at the moment of purchase for new cars. You won't use it for several years while the manufacturer's warranty is active, and you can usually buy it later. The "Self-Insurance" Alternative If a $2,000 engine or transmission repair would

Many credit cards (like those from American Express or Chase ) automatically extend manufacturer warranties by a year or more for no extra charge.

Read the fine print; many warranties exclude "wear and tear" items or require high deductibles that make small repairs not worth claiming.