How to Save Money On Your Next Product Warranty

When you are looking to purchase a warranty on a car or other item, you need to know what you are buying.  Do you really need to pay $14.99 for a replacement plan on that toaster oven you just picked up?  Sure, it is new, but if it breaks within the return period you can bring it back, and if it breaks later on, you can probably find it used for about the same price as the warranty.

Now consider what you can save when it comes to a major warranty.

The biggest type of warranty where people pay more than they should is with their auto warranty.  It is absolutely critical that you pay attention to all of the fine print whenever purchasing it.  In many cases, the policy you buy will not cover normal wear and tear, but only mechanical defects.  If your car is used, you can bet that there will be some sign of wear, which means that your warranty company is going to be able to get out of paying you.

Another thing to consider with warranty coverage is the deductible.  Many plans charge a deductible per repair or even per problem.  This means that you are paying hundreds of dollars per issue with your vehicle in addition to the warranty price. 

Unless you are having a major problem, the issue is likely to cost less than your deductible, which means that your warranty costs are just money down the drain.  By reading the fine print, you can often save a small fortune on your warranty.