Updated: Dec 9, 2019
Domino's Pizza is advertising "pizza insurance" for its pies should you drop one before it gets to your kitchen table. I had to investigate how much this insurance costs and wondered who would purchase it. It turns out, there is no cost to this insurance. It is a marketing promotion and a good one if you ask me. (I got sucked in.) This got me thinking about extended warranties on other items, big and small. Should you buy and extended warranty?
On the pro side of extended warranties, they provide you with peace of mind. They prevent out of pocket expenses, should you use it. And insuring items that are very expensive might be a good idea.
On the con side of warranties, they are overpriced. Companies offer these to increase revenues and profits. If the item is not expensive and you can afford to repair or replace it on your own, you should consider that.
Other factors to consider are special circumstances. For instance, I purchased "loss" coverage for my teenage daughter's cell phone. I never used it, but I thought the odds were that she might lose it.
Deciding to purchase an extended warranty or insurance is an individual choice, these and other considerations should be evaluated before signing on the dotted line. Also, you may have 24 or 48 hours after your purchase to make a final decision on the warranty.