5 Reasons Not to Purchase the Extended Warranty - home appliance manufacturer
If you have recently purchased a home appliance, a computer device, or a used car, you may get an extended warranty.
In many cases, it will be difficult for the salesperson to convince you to buy it-
Overview all the benefits of the warranty and the negative emotions that you can generate if your purchase fails too early.
The question is, does the extended warranty have good value for consumers?
The answer is loud no, they are not.
These policies are a huge deal for those who provide them, but for consumers, they are a terrible deal.
There are five reasons: it must be.
Insurance companies pay all their fees and make money on the policies they issue.
The only reason they do this is, on average, you pay them more than they pay you ---a lot more.
Related content: 7 methods companies that establish and improve personal credit scores continue to provide these policies and insist on getting their sales staff to work to push them forward because they are very profitable.
If these policies are profitable for companies that issue them, then there is no unprofitable for consumers who purchase them.
So, on average, insurance is a proposition of failure.
In your life, you will buy hundreds of appliances, computers, mobile phones, car repairs, etc.
It's quite possible that you will pay these from your own pocket much better than buying insurance to pay them.
When our daughter was in her teens, she was probably the exception to prove the rule.
Her phone often looks like it was tied to the bumper of her car with a long wire and then dragged on the road.
It often loses keys, cracked screens, etc.
Unless you abuse your property in this way, you will not purchase an extended warranty.
That's not to say that all insurance is a bad idea. -it’s not.
If the loss you protect is economically devastating (
Like the loss of your own home)
It is recommended that you protect yourself with insurance.
While homeowner insurance, on average, is a failure proposition, you can't afford the risk that you are the unlucky person whose house has burned down.
However, the cost of premature television failures, car repairs or new computers, while disappointing, will not have devastating economic consequences.
Therefore, it is recommended that you use the mean.
Do not buy extended warranty.
Most of the products you buy have some kind of manufacturer's warranty.
If your purchase fails prematurely, it is likely that this warranty will make up for your loss.
If the manufacturer's warranty has expired, you may be protected if you pay for the purchase by credit card.
Many credit cards offer some form of warranty protection, but not all.
Find out what other protections may be needed for your purchase.
Buying what you already have is a ridiculous waste.
Related: 3 reasons why having no money will make you a better entrepreneur most extended warranty has a lot of details.
You won't see it.
Almost no one has done so.
The company that issued the extended warranty knows this.
However, they know exactly what the fine print says.
Their lawyer wrote the letter to protect them.
When a claim is made, if there is anything in the fine that allows the company to avoid paying the claim, they will take advantage of that.
You may find that no matter what causes the damage, your purchase is not included. You lose.
The company that issued the policy won.
Remember, these companies make money by avoiding claims.
How much is the value of second-hand computer or second-hand mobile phone?
There may be fewer answers than you think.
These purchases start to depreciate significantly at the moment you buy them.
If you are covered by the market value of the purchase rather than the replacement cost, even if you get the settlement, it may be much less than you need to get the replacement.
This is another thing in the fine print you won't read.
Companies that publish these policies rely on breakage.
That is to say, many people who have suffered insurance losses will not make claims.
They will forget that there is insurance to buy.
They will remember that it was covered, but could not find the document that proved it.
Many insurance losses are unclaimed for whatever reason.
Again, the company that posted the policy won and you lost.
The key is that you feel much better about yourself through small purchasesinsure.
That is to say, don't buy extended insurance with too high price.
If you suffer a loss prematurely, pay for the replacement yourself.
You will be an economic winner in the long run.
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