Are Extended Warranties Worth It?

The question of whether to purchase an extended warranty on a new air conditioning unit is something that likely crosses the minds of everyone who makes his or her way up to the register. Extended warranties are more commonly offered on many larger appliances and electronic purchases and are often pushed very hard by retailers.

It's very easy to get caught up with the idea that an extended warranty is a worthwhile purchase to make after spending a great deal of money on a new air conditioner, however, the truth of the matter is that often these extended warranties are pushed so hard simply because they are extremely profitable for the stores offering them.

Though it is hard to make sweeping, across-the-board recommendations, when it comes to purchasing extended warranties, it's almost never worth your money.

These extended warranties for air conditioners and other appliances typically last for a period of 3 years - a very short time in the life cycle of such a major appliance, particularly when a one year warranty is often included as a standard feature of your purchase anyway from the manufacturer. Generally speaking, larger appliances typically go seven years or so before requiring service, which is well beyond the life of an extended warranty. Most people never make use of their extended warranties, resulting in an 80-90% profit structure for the stores that sell you their warranties.

Keep in mind that extended warranties also have many restrictions built into their policies that might not offer you the level of freedom and service you anticipate.

Though we suggest you skip the extended warranty altogether, we also want you to get the best bang for your buck. If you insist on purchasing an extended warranty for your air conditioning unit, make sure you get the facts. For instance, will service be provided for you at your home, or will you need to bring you the unit somewhere to be repaired? Will a loaner air conditioning unit be given to you while yours is being serviced? Are there any deductibles that you will be responsible for paying before service or a replacement unit can be offered?

Really consider the value an extended warranty on your air conditioning unit will provide for you before making any final decisions. Consider that if extended warranties were not so profitable for stores, they would never be pushing them as much as they do.