Should You Buy Extended Warranty -

For many consumers, the cost of the warranty exceeds the likely cost of repairs. However, it can provide significant "peace of mind" for those who cannot afford a sudden, large repair bill.

If a $2,000 engine or transmission repair would be a financial disaster, paying a smaller, fixed amount for a warranty functions like an insurance policy. When to Skip It should you buy extended warranty

Many credit cards (like those from American Express or Chase ) automatically extend manufacturer warranties by a year or more for no extra charge. For many consumers, the cost of the warranty

Read the fine print; many warranties exclude "wear and tear" items or require high deductibles that make small repairs not worth claiming. For many consumers