Extended warranty on electronics is a good bet in the long run

Kunal MahipalUntil recently, the term extended warranty was something that mostly vehicle owners were familiar with. Now, with such plans available even on consumer electronic products, it is important to not only be aware of them but also to know how to avail them. So, if you are in the market for that latest microwave oven or swanky air-conditioner, here’s a quick lowdown on extended warranties and how they may prove useful in reducing long-term ownership hassles.What is an extended warranty?Manufacturers usually offer a standard warranty on products which is basically a promise to repair or replace a product within a specified time frame in the event of any manufacturing defect. An extended warranty is a service agreement that helps to increase or extend this period of time. Simply put, if the standard warranty offered by the manufacturer on your new air-conditioner is one year, you can opt to extend this to three years by purchasing an extended warranty for two additional years.Extended warranties are offered by service providers other than the manufacturer and consumers are often given the option to include the additional coverage either at the time of purchase or when the standard warranty is approaching its end date.Why isn’t the manufacturer’s warranty enough?Picture this. You have had a great run with your new washing machine for the past two years. At the start of the third year, your machine’s rotor decides to stop spinning. Unfortunately, for you the company warranty card states that the period of warranty was for two years comprehensive. You have no choice now except to cough up a hefty repair bill. Not to mention the hassles of following up with the company’s authorized service centre till you get your machine fixed.No such problems if you have an extended warranty.Extended warranty lets you rest easy!Here’s how:

• Firstly, you are safeguarded from any manufacturing defect for a longer period of time as compared to standard warranty.

• It helps save you money in the long run. An extended warranty at 5 to 7% of the product cost is a small price to pay for shielding you against expensive repair cost amounting to as high as 80% of the product cost, if anything should go wrong with your product. The long-term benefits are too good to ignore.

• Some service providers offer special doorstep services. They ensure your product is fixed by an authorized brand technician at your home. If the product needs to be transported to a workshop, the cost of transportation is borne by them.