When buying an expensive item such as a new television or a new dishwasher, you will often find that the product comes with a guarantee. This guarantee is a promise form the manufacturer to repair the good if it proves to be faulty within a set period of time. while this type of promise is free, in many cases you will need to make sure that you register the product within 4 weeks of purchase in order to validate the guarantee.

While guarantees are good enough in most cases, some people choose to take out extended warranties. While a warranty is indeed a very useful item to be assured of protection against faults of manufacture and the promise of customer support, many consumers may find themselves paying extra for coverage that is provided under their general legal rights. For example, a warranty may state that all repairs will be carried out free of charge for a certain time period. However, there may also be a stipulation that states that any "unusual damage" will not be covered by such a policy. This can be a potentially dangerous loophole.
Or, a consumer may be under the impression that he or she has forty-five days to return a certain electrical good. Although this time period may apply to this type of product, it will most likely be different in reference to other items. Simply stated, correctly ascertain the time period for each individual warranty.

Be wary of "blanket coverage" policies. There are most likely still terms and conditions that void such a statement. This may include instances of normal wear and tear or neglect. It a salesman appears overly insistent, it is a good bet that there may be hidden clauses that should be elucidated before finalizing any purchase.

In some stores, consumers are often put on the spot to buy a warranty, not having had a chance to read the product guarantee first or really think about whether or not they need it. Don't give in to pushy sales tactics if your are not convinced of the value of a warranty. You have 30 days after buying the product to take out a warranty, so you really don;t need to make a decision or unnecessary payment on the day.

In addition, if you have taken out a warranty on a recently purchased product and decided that you do not want it, you can cancel it. You can get the full amount back if you have had the warranty less than 45 days and you can get a partial refund if you had the warranty for more than 45 days.

Summarily, some variables to remember are:
  • One is under no obligation to agree to a warranty when purchasing a product.
  • The retailer must provide the consumer with a written quote for the warranty if requested.
  • Always determine the coverage limits on the warranty.
  • Make certain that the guarantee is underwritten by an insurance provider.