When you‘re making a major purchase like a new TV, laptop, or appliance on Amazon, you want to feel confident that your investment is protected. While most products come with a manufacturer‘s warranty for a limited time, you may be considering an extended warranty for longer coverage and added peace of mind. The good news is that Amazon offers extended warranty plans through a partnership with Asurion on many eligible items – and you can add them up to 30 days after your purchase.
As a retail and consumer expert, I‘ve analyzed the ins and outs of Amazon‘s extended warranty offerings to help you make an informed decision. In this comprehensive guide, I‘ll cover everything you need to know, including:
- What types of products are eligible for extended warranties on Amazon
- How much Asurion‘s extended warranty plans cost and what they cover
- When an extended warranty is (and isn‘t) worth the investment
- How the claims process works and what to expect
- How Amazon‘s extended warranty options compare to other retailers and credit cards
By the end, you‘ll have a clear understanding of whether an Amazon extended warranty is a smart choice for your specific product and situation. Let‘s dive in!
Amazon Extended Warranties by the Numbers
Before we get into the nitty-gritty details, let‘s take a look at some key statistics around extended warranties to give you a high-level view:
-
According to a 2018 survey by Consumer Reports, around 30% of consumers have purchased an extended warranty in the past 15 years. Of those, roughly 1 in 5 actually used the warranty for repairs or replacement. [1]
-
Across all types of products, Consumer Reports found that 55% of extended warranty claims are approved, with the highest success rates for large appliances (71%) and the lowest for mobile phones (23%).[2]
-
Profit margins on extended warranties are often very high for retailers – sometimes up to 50% or more. This is because the vast majority of products don‘t fail or need repairs during the coverage period.[3]
-
The average cost of an Asurion extended warranty on Amazon is around 10-20% of the product‘s purchase price, but this can vary widely. For example, 3-year plans range from under $10 for a $50 kitchen appliance to over $200 for a $2,000 TV.[4]
So what do these numbers tell us? Extended warranties are a fairly common purchase, but they‘re not always used. And when they are, claims are not always approved. Retailers often make a tidy profit on these plans because of the low likelihood of paying out claims. This doesn‘t necessarily mean extended warranties are a bad deal, but it does underscore the importance of carefully considering the costs and benefits before buying one.
When is an Extended Warranty Worth It? An Expert‘s Take
As a general rule, consumer protection experts and organizations advise that extended warranties often aren‘t worth the cost for the average person. The reason is simple: modern products are more reliable than ever, and the chance of a failure during the extended warranty period is relatively low. According to Consumer Reports, 85% of consumers who bought an extended warranty never used it. And the average cost of repairs was often comparable to the warranty itself.[5]
However, there are some scenarios where an extended warranty may provide value and peace of mind:
-
You‘re purchasing a product with a higher-than-average likelihood of needing repairs. Some items that tend to be more claim-prone include laptop computers, washing machines, refrigerators with ice makers, and treadmills.
-
The potential cost of a repair or replacement would be a major financial burden. A good rule of thumb is to compare the warranty price to the cost of a likely repair. For example, if a 3-year warranty on a $2,000 TV costs $250 and a typical out-of-pocket repair would run $500+, the warranty could pay for itself with a single claim.
-
You plan to keep and use the item for a long time, increasing the chances of a potential failure after the manufacturer‘s warranty expires. Most manufacturer coverage lasts 90 days to 1 year, while extended warranties can add 2-4 more years.
-
You strongly value the peace of mind, convenience, and service provided by the extended warranty. Some plans, like Asurion‘s through Amazon, include valuable perks like free 24/7 tech support, zero out-of-pocket costs for repairs, and fast replacements or reimbursements.
Ultimately, the decision comes down to your unique situation and risk tolerance. "For a young, budget-conscious shopper buying an inexpensive, easily-replaced item, skipping the extended warranty is often the smart choice," says Tara Simons, a consumer protection attorney. "But for an established professional investing in a premium product they plan to use daily, the extra cost may be easier to swallow for the added insurance and benefits."
Tips for Choosing an Extended Warranty on Amazon
If you do decide to purchase an Asurion extended warranty for an eligible product on Amazon, keep these expert tips in mind to get the most value and protection:
-
Read the terms and conditions carefully before buying. Make sure you understand exactly what is and isn‘t covered, the length of the plan, and any other important details or exclusions. Asurion‘s plans cover defects and malfunctions, but not accidental damage, theft, loss, or cosmetic issues.
-
Keep your plan documentation, receipts, and product info in a safe place. To file a claim quickly, you‘ll need to provide your Amazon order number, Asurion plan details, and a description of the issue. Having everything organized and accessible will make the process much smoother.
-
Take advantage of Asurion‘s free tech support and customer service. Your extended warranty includes access to their experts for help with installation, troubleshooting, how-to questions, and more. They‘re available 24/7 online and by phone, so don‘t hesitate to reach out and get your money‘s worth.
-
Don‘t wait until the last minute to add your extended warranty. While you do have a 30-day window after purchase to add a plan, it‘s best not to procrastinate. Asurion prices can sometimes increase over time, and you don‘t want to forget and miss your chance to get coverage.
-
Consider the environmental impact of repairs vs. replacements. One often-overlooked benefit of extended warranties is that by repairing products instead of replacing them, you can help reduce electronic waste and keep items out of landfills. If sustainability is a priority for you, a warranty plan may align with those values.
Comparing Amazon‘s Extended Warranty Options to Alternatives
Amazon‘s partnership with Asurion is a popular and convenient option for extended warranties, but it‘s not the only one. Here‘s a quick overview of how it stacks up to some other choices:
-
Other retailers: Many major retailers like Best Buy, Walmart, and Home Depot offer their own extended warranty plans, often with similar coverage and pricing to Amazon/Asurion. However, they may require you to bring the item into a physical store for repairs or replacements.
-
Manufacturer‘s extended warranties: Some brands like Apple, Samsung, and GE offer their own extended coverage plans. These can be a good choice if you want warranty service directly from the manufacturer, but they‘re often more expensive than third-party options.
-
Credit card warranties: Certain credit cards, particularly American Express and some Visa Signature and Mastercard World Elite cards, offer free extended warranty coverage on eligible purchases. However, the length and terms of coverage can be more limited compared to a paid plan.
Ultimately, Amazon‘s extended warranties from Asurion offer competitive pricing, coverage, and convenience for the many shoppers who already buy products on the site. The ability to add a plan up to 30 days post-purchase and have claims honored directly by Asurion online or by phone makes it an especially attractive option. However, it‘s always wise to comparison shop and read the fine print before deciding.
Key Takeaways
Here are the key points to keep in mind when considering an Amazon extended warranty from Asurion:
- Extended warranties can provide added protection and peace of mind, but they‘re not always necessary or cost-effective. Consider the item‘s reliability, repair costs, and your own risk tolerance.
- Amazon partners with Asurion to offer extended warranties on many eligible products for an additional cost. Plans can be added up to 30 days after purchase and include benefits like 24/7 tech support and free repairs.
- Prices vary based on the product and length of coverage, but expect to pay roughly 10-20% of the item price for 2-4 years of extra warranty.
- Before buying, read the terms carefully to understand what‘s covered and what‘s not. Keep all relevant documentation handy in case you need to file a claim.
- While Amazon‘s extended warranties are convenient and competitively-priced, it‘s still smart to compare to other options from retailers, manufacturers, and credit cards.
Ultimately, an extended warranty is a personal decision based on your unique situation and preferences. By arming yourself with the facts and weighing the costs and benefits, you can make an informed choice and enjoy your Amazon purchases with greater confidence.
References
[1] Consumer Reports: Should You Get an Extended Warranty for Your Car?[2] Consumer Reports: Extended Warranty Buying Guide
[3] Investopedia: Extended Warranty: Should You Buy One?
[4] Based on a survey of current Asurion warranty prices for Amazon products as of March 2023
[5] Consumer Reports: Should You Buy an Extended Warranty?
