The Reality Reports

Every product you buy comes with a promise, and most people never read it. A warranty is a written commitment from the maker that the product will work as described for a set period of time. If it breaks because of a covered defect in materials or workmanship, the company may agree to repair it, replace it, or provide another remedy. Understanding that promise before something goes wrong can save you money and frustration. Warranty terms vary by product and company, so knowing what is covered, how long the coverage lasts, and what you need to make a claim can make a major difference.

Extended warranties are offered on everything from phones and televisions to appliances and cars. They promise protection after the original warranty ends, but that protection comes at an added cost. Sometimes the coverage is useful. In many cases, however, saving the money for future repairs is the better choice.