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The following is a guest post from Bailey Harris. Bailey writes about online car insurance quotes for www.insurancequotes.org.
In theory, these warranties sound like a good idea, but many people consider them unnecessary–some even call them a scam. It’s a debate that will probably go on for a while because the answer is subjective.
Are extended auto warranties a scam? The truth is that it depends on the buyer and the situation.
An extended warranty will kick in after that and provide coverage for whatever length of time you choose. You will also have to decide exactly what is and isn’t going to be covered. Of course, the longer the period of time and the more detailed the coverage, the bigger your payments will be.
How about you all? Have you ever purchased extended warranties for your car or other assets? If so, was it, in your opinion, worth the added cost?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- Great article here Bailey! I very much enjoyed it, as it is not a topic that often gets posted about on My Personal Finance Journey.
- @ Are auto warranties scams? Personally, I believe that they are not scams (regardless of how expensive they are), unless they mislead the purchaser to believe that they are buying a certain type of coverage, when in reality, they are not.
- @ Are extended warranties worth the cost? The answer to this question is slightly more complex. However, I believe that the answer in most every case is “no,” they are not worth the added cost. Most of the time, these warranties are just ways for the dealer or selling party to make more money.
- Instead, I prefer to keep a sizable emergency fund to enable me to have the reserves needed to cover costs of unexpected occurrences.
***Photo courtesy of http://www.mediabistro.com/agencyspy/files/original/scam.jpg