Do you know which of the things you own came with a warranty? If so, do you know what it covers? Should you get an extended warranty? What about insurance? We’re here to give you some pointers.
Warranty
Put simply, a manufacturer’s warranty, oftentimes referred to simply as warranty, covers manufacturing problems that you notice only after having bought a product and most durable goods come with one. Under warranty, the product will be repaired or exchanged, if it does not work as described or intended. But there are often limitations:
If you alter the product. For example, if you take apart your phone, then put it back together and it stops working, or if you tune your car and check your engine light comes on, in most cases, your claim will be rejected under warranty.
The problem is not a manufacturing error. Again, some warranties might still help you in those situations (possibly against a fee), so it’s still worth trying, but if you drowned your phone in the toilet, the manufacturer won’t help you replace it under warranty. Similarly, if it got heat-damaged, because you left it in the sun on your most recent beach outing, warranty usually won’t fix the problem.
You're past the warranty validity date. Unless you bought something with a lifetime warranty, you usually have a limited amount of time to make claims under the product warranty. Most phones come with no more than twelve months of warranty. You want to make sure that you check the various functionalities before your warranty expires and make all claims in time. Savvee can help you keep track of those dates.
Extended Warranty
Given the limitations of warranties, what is the added value of extended warranty? Extended warranties, as the name implies, will give you something extra compared to the basic warranty explained above. Which aspects it “extends” specifically depends on the product it covers, but like a warranty, extended warranty only covers a specific item. Therefore, if you get extended warranty for your new phone, it won’t automatically cover your partner’s phone as well, though sometimes you can get family-covers.
Extended warranty can expand the duration of your basic warranty, but it can include additional services, like favorable rates for additional repairs. To determine whether it is worth it, you should evaluate the following factors against the cost of buying it:
Would I suffer financial hardship if my item broke? Would buying a replacement or paying for the repair out of pocket strain your budget significantly?
How badly do I need this item? Does it impact my daily routine or would I not even miss it? (think of the power tool you bought for your DIY-project months ago, that has since been languishing in your garage: you probably wouldn’t miss it too much)
How likely is the item to break within the extended-warranty-period? If you know the brand, have owned similar items in the past, know your friends’ experiences or have read up on it online, you should have a good basis to assess that risk.
Even if all those questions push you towards an extended warranty, remember: extended warranty is a special type of insurance. So before you throw your money at it: check your household insurance, the accident you are concerned about might already be covered there, and always compare different providers to get the best deal.
Insurance
Insurance can give you more flexible coverage, compared with warranty or extended warranty. There are two types of additional support you can get:
Insurance can cover more than (manufacturer’s) defects: if you are worried about theft or other ways of losing your phone (like dropping it off a cliff while trying to take a selfie), insurance may be a good fit for you.
Insurance is not necessarily limited to a specific device: if you have household insurance with coverage of your phone, it will still cover you, even when you replace the item (just make sure you keep the insured value high enough to avoid underinsurance).
In addition, there are a lot of insurance providers to choose from. And don’t just compare quotes and get the cheapest: make sure you compare what is actually covered and negotiate for better terms (more coverage / lower premiums / goodies). If you can not be bothered to put in the work yourself, you can go to a broker, who will make the comparison for you.
Savvee wants you to get the most out of your things, and the right insurance cover can help you do just that. Savvee can also help you keep track of warranties and insurance coverage you have and simplify the claims process. The app is free and available for iOS or Android!
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