Should You Buy Extended Warranty -

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

Items with complex electronics or proprietary parts (like electric vehicles or high-end appliances) can be prohibitively expensive to fix out of pocket. should you buy extended warranty

Deciding whether to buy an extended warranty—often called a service contract—depends largely on your personal finances, the reliability of the product, and your tolerance for risk. If a $2,000 engine or transmission repair would