These days it seems as if everything comes with some form of extended warranty. The salesperson wants you to purchase that warranty "just in case" something were to happen. But how do you know that the warranty is a good deal? Is it a case of luck on whether or not the item you purchased will tear up and leave you holding an expensive repair bill?

Perhaps it is a case where you pay out hundreds of dollars in extended warranty only to never need it. Extended warranties are funny that way. On some products we automatically make that extra purchase but on others we skip the warranty. In this article we will cover what an extended warranty is, what products are covered, and even whether or not you should invest your money in an extended warranty.

What is an extended warranty?

An extended warranty is also known as a service contract or service agreement. It is a written agreement that states that if the merchandise is damaged it will be fixed or replaced without any cost to you. The extended warranty is a guarantee for when the regular warranty either does not cover a certain product or you want it for a period of time that is longer than what the original warranty covers.

If something were to happen how do I make an extended warranty claim?

The first step is to locate your warranty paperwork. This is the time to carefully review what your coverage is as well as what is necessary to fill out a claim. If the paperwork seems confusing about what is covered and what is not covered you can always call the customer support center.

Make sure you get the person's name you are speaking with and ask them to explain the warranty to you in detail. From there you will have to fill out a claim form and send in proof of purchase such as your receipt. The warranty information should tell you where to send the merchandise or give you a list of repairmen in your area that service those machines for the warranty company.

If I had a cell phone or electronics covered by an extended warranty does it include if the product were to become wet and stop working?

Most extended warranties do not cover when an item is damaged due to the user's fault. This includes getting the cell phone or electronics wet. They will protect against faulty equipment wiring and internal pieces being broken but if they determine that it was the user's fault you could be charged for the repairs and your claim denied. That is why it is so important to read through your warranty information carefully to see what is covered and what is not covered by the extended warranty.

Why does some consumer advocate groups speak against getting an extended warranty?

The reason some consumer advocate groups speak out against purchasing an extended warranty is because most of the time the item is not susceptible to damage and you are only lining the salesman's pocket. They usually get a commission based on how many extended warranties that they sell. Many times the cost of getting the item repaired is going to be far less than what the extended warranty costs.