Extended warranties are pushed hard at checkout because they are highly profitable for the seller. That does not make them always wrong, but it should set your default to sceptical.
Why they are usually poor value
The failure curve works against them. Electronics tend to fail either early — within the manufacturer warranty, where you are already covered — or after several years, by which time you may have replaced the device. The middle period an extended warranty covers is statistically when failures are least likely.
The price is high relative to repair cost, and coverage is often narrower than people assume — many cover only manufacturing defects, the same thing the standard warranty covers, and specifically exclude accidental damage, which is what actually happens to phones.
The two cases where they can make sense
Accidental damage protection on an expensive fragile device. This is different from an extended warranty — a plan covering drops and cracked screens can be worthwhile on a premium phone where a screen replacement costs a lot. The maths depends on your history: if you have broken screens before, the probability justifies it.
Devices with expensive, hard-to-source components — large TVs, premium laptops with soldered parts — where a single claim can exceed the plan cost.
What to check before agreeing
- What exactly is covered — defects only, or accidental and liquid damage?
- Is there a claim limit or a payout cap?
- Is there an excess you pay per claim?
- Who services it, and what is the turnaround?
- Does it duplicate coverage you already have — some credit cards provide purchase protection?
The pressure tactics to recognise
These are sold with urgency — available only at purchase, emphasis on how expensive repairs are — and staff often earn commission. You are entitled to take time. If a plan is only worthwhile because you must decide in thirty seconds, it is not worthwhile.
The alternative worth considering
Put the money you would spend on extended warranties into a small self-insurance fund. Across several devices over several years, most people spend less this way and keep what is left. Combine that with a good case and screen protector, which prevents damage rather than paying for it afterwards.
The default answer
Decline, unless you are buying an expensive fragile device, you have a history of damaging things, and the plan explicitly covers accidental damage on reasonable terms. Read what is covered rather than what is claimed at the counter.
