The Best Warranty is an Emergency Savings Plan

Best Warranty for Your Money

Historically extended warranties have had a bad reputation.  Over the last 15 years, legislation has changed plans to the consumer’s benefit.  Now, the right product, person and situation may justify buying an extended warranty.  If you’re considering buying one, know the details of the plan and the fine print.  You can, however, provide yourself the best warranty protection and it may be cheaper than you think

Our Warranty Story

The compressor in our refrigerator died a week before Thanksgiving.  Spending several hundred dollars just before the holidays wasn’t in our financial plan.  We bought a new though and the salesperson suggested an extended warranty to cover the compressor in our new refrigerator three years beyond the manufacture’s warranty.  We’re considering it, but we have 30 days to decide.

We hosted Thanksgiving dinner for six people, including serving a 22 pound brined turkey, and another dinner for three last Friday.  The cold weather has helped.  Between that and our coolers, we’ve managed.  Something we felt needed to be replaced immediately, actually didn’t.  Having our emergency savings helped.  Sure, we hate that we had to spend several hundred dollars unplanned right now, but at least we can.  Having an emergency savings account was our best warranty.

Weigh the Costs

The great thing about having our emergency savings is that it was our best warranty option. Sure a $900 (gently dented, but immaculately clean) fridge was a big purchase for us. The nice thing is that we were able to forgo the pricey extended warranty. How you ask? Well here was our thought process. To have our fridge fixed, we would have had to order the part, wait for it to arrive, schedule an appointment, which meant one of us would be staying home from work and ultimately we would have had more food spoiled than we had hoped. In the end those costs outweighed the new fridge that came with a 10 year warranty on the compressor. We feel we saved time, money and the headache of getting the old one fixed.

Have you had a similar experience?

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Comment List

  • Tom 28 / 01 / 2016 Reply

    Very nice succinct post! I have always had the same thoughts about extended warranties, but could not have said it so well. I take a similar stance on insurance. I insure for the large things, but for smaller things just make sure I have some savings to cover them should the worst happen.

  • Jordan 01 / 02 / 2016 Reply

    Companies make so much money off their “extended warranties”. These things can cost you a fortune over your lifetime. If you get the extended warranty on your laptop, phone, fridge, camera, ect. Along with all your other electronics you will be paying a ridiculous amount. If you just save an emergency fund you can consider yourself having an “extended warranty” on all your products without having to pay for them up front. Think about this for a second. You’re talking about getting an extended warranty on an apple lap top. I think they proven that they work pretty well. That’s a risk you can take with an emergency fund.

    • John Schneider 02 / 02 / 2016 Reply

      Thanks Jordan. It really is nice having the emergency savings account and the freedom it provides us and the decisions we can make knowing we have our own backs. Sounds like you are the same.

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