So you're at the checkout, about to click "purchase" on your online order, when a box pops up asking if you'd like to pay an extra $70 for an extended warranty. You're splurging on a brand-new, $600 DSLR camera... so you hesitate.

Should you buy the extra insurance? Is the $70 worth it?

Probably not, say the experts. Here's why:

New products rarely require repairs.
According to Consumer Reports, research reveals that most products usually don't break during the two-to-three-year period after the manufacturer's warranty expires and the service plan is in effect. So you might not need that coverage.

Repairs aren't expensive.
When electronics and appliances do break, the repairs generally don't cost as much as the average warranty.

Repairs may be covered.
When you purchase a major appliance or expensive electronic device, it usually comes with a service plan. Time frames range, but generally cover 90 days up to a year.

So -- what do you do? For starters, do your research. When making a major purchase, read reviews and compare products. If you buy a high-quality, top-rated laptop, for example, you are less likely to encounter the need for repairs in the first place. Also, be sure to to purchase a protective case for your smartphone -- and if you have small children or pets, put expensive items out of reach.

Also -- if you're purchasing something expensive like a pair of diamond earrings or a piece of art for your home, contact your insurance agent to discuss upping the coverage on your homeowner's policy.

Happy Holidays!

Source: Consumer Reports, Best Extended Warranty Buying Guide.
Photo Credit: George Vail, Chegou!

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