Holiday Shoppers Should Be Wary of Extended Warranties

At this time of year, retailers are discounting items such as TVs, cameras, etc., and accepting a smaller margin.

However, they try to make up for it by more aggressively pushing extended warranties - which are a big source of their profits.

Unless you are buying something really expensive (like a 3D TV), these warranties are not worth it. Most electronic devices are covered by the manufacturer for one year, and that is where defects will show up - not during the extended warranty period ( years 2-4).

If you do decide to get the extended warranty:

1. Read the fine print of what is and isn't covered.

2. Keep proof of coverage.

3. Hang onto any receipts, serial numbers, or UPC symbols you may need.