Checkout line anxiety: Should you purchase that extended warranty?

45706676_MWho hasn’t been in this position? You’re at the store buying a new television, laptop, digital camera or cell phone and the cashier puts the question to you — Do you want an extended warranty on that? You have only seconds to answer the question and you probably don’t know a lot about these extended warranties. No pressure!

Let’s take a closer look at how you can respond — and ease a little of that checkout line anxiety.

Don’t be afraid to ask questions, such as these: When does the warranty start? What’s covered? What’s not covered? Does the cost to replace the item warrant extra coverage? Don’t worry about holding up the checkout line. These are all valid questions.

You should know that any defects during the first year are typically covered under a manufacturer’s warranty anyway. (Just save the purchase receipt to make sure you can take advantage of the manufacturer’s warranty and mail in any necessary paperwork). Another thing to consider is that if you made your purchase with a credit card, you may already have a purchase protection plan that doubles the manufacturer’s warranty for up to a full year.

Extended warranties are a big money maker for retailers. Why is this? People seldom actually file claims through extended warranties. Plus, the retailers are charging a lot of money for them, up to 20 percent of the purchase price. It turns out that in most cases, a manufacturer’s warranty is sufficient coverage. So consider saving yourself some money — and anxiety — and just say ‘No, thanks’ to extended warranties in the checkout line.