Hundreds of AARP member benefits. One convenient place to explore them. Check it out!
by Sid Kirchheimer, AARP Bulletin, February 11, 2011
Q. What happens to my extended warranty if the store where I purchased it goes out of business?
A. In most cases, you'll still be covered because extended warranties are typically provided by third-party companies. But before you agree to buy that extra protection, read the actual contract. You'll want to see who is the service provider and investigate that company's reputation through an online search. You'll also want to check the fine print for limits and exclusions on coverage.
Consumer Reports and other expert sources say that extended warranties are usually not worth their cost. They are heavily promoted by retailers because stores typically keep 50 percent or more of the warranty's cost, often a higher profit margin than they make selling the covered product.
Here are the realities: Products seldom break down within the extended-warranty window, and when they do, the repair typically costs about as much, or less, than the price of an extended warranty.
A better approach: Before shopping, check with your credit card issuer. For purchases made with plastic, many provide free extended warranty coverage for up to a year beyond the original manufacturer's warranty. And if a product fails not long after the original warranty has expired, try approaching the retailer or manufacturer for a replacement. Ask for the manager, stress that you're a good customer and ask whether something can be done for you.
Sid Kirchheimer writes about health and consumer issues. Have a question for Sid Kirchheimer about a new product, a new kind of bank account? Check out the Ask Sid archive. If you don’t find your answer there, send a query.
Please leave your comment below.
You must be logged in to leave a comment.
Members save 25% on their first healthy meal delivery order of 99+.
Exclusive program for members from The Hartford.
Get tips and resources to protect yourself from fraud and see the latest scam alerts in your state.
AARP members receive exclusive member benefits & affect social change.
You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
Your email address is now confirmed.
Manage your email preferences and tell us which topics interest you so that we can prioritize the information you receive.
Explore all that AARP has to offer.
In the next 24 hours, you will receive an email to confirm your subscription to receive emails
related to AARP volunteering. Once you confirm that subscription, you will regularly
receive communications related to AARP volunteering. In the meantime, please feel free
to search for ways to make a difference in your community at