Debunking 5 common myths about extended warranties for electronics

When you buy expensive home tech, like a TV or a laptop, you may be wondering, “do I need the extended warranty?" The answer: It depends.

Most U.S. households have invested $11,500 on technology, according to a 2022 CTA US Consumer Tech Forecast and 24th US Ownership Study. That tab will only grow if—and when—your devices break and you need to replace them.

Extended warranties can save you a lot of money and the hassle of buying something new. But it's important to know what you're getting up front. We'll walk you through the facts—and myths—surrounding electronics extended warranties.

What's an extended warranty?

An extended warranty is a contract that covers the cost of repairing or replacing home tech, from TVs and laptops to gaming systems and tablets.

Extended warranties, also known as protection plans, typically kick in after a manufacturer's warranty expires.

If you're considering one, it's important to weigh the cost of your electronics compared to the cost and terms of the plan. You'll want to look closely at the extent of the coverage—read the fine print to make sure the repair or replacement process isn't a hassle—when deciding whether an extended warranty is for you.

Top electronics extended warranty myths

When it comes to extended warranties, there are plenty of myths out there. We rounded up five of the most common so you can avoid them.

Myth #1. You don't need an extended warranty because a manufacturer's warranty will cover everything. False

Most manufacturer's warranties don't cover many of the common problems customers face with their electronics, like accidental damage, normal wear and tear, or even theft. Many extended warranties do.

Plus manufacturer's warranties usually expire after a few months or years, depending on the device. An extended warranty will give you peace of mind for longer.

Myth #2. An extended warranty costs more than repairs. False

It's expensive to repair or replace your tech, which may lead you to wonder, “are extended warranties a better deal? And what does an extended warranty cost anyway?"

Well, let's say you pay a monthly fee for a protection plan, such as Asurion Tech Care. This covers all your favorite home devices—if any of your big-ticket items, like your TV or laptop, break down over the next five years, you'll likely save money.

To find out what it'd cost to replace your devices, check out our home tech calculator.

Myth #3. Extended warranties are limited and inflexible: False

Extended warranties and protection plans vary. Some are valid for a year, while others last 3 to 5 years or renew until canceled. Some offer full refunds, others cover just the repair costs, and still others may ask you to pay shipping fees or deductibles. It's crucial to check the terms of your plan and get one that works for you.

Myth #4. You only need an extended warranty if you plan to keep a device for a long time: False

It's true that an extended warranty for TVs or laptops, for example, pick up coverage when a manufacturer's warranty expires. But even if you only keep a device for a short time, an extended warranty can help boost the manufacturer's warranty. For example, an extended warranty will cover many issues with your laptop like drops, spills, and cracked screens, while a manufacturer's warranty usually doesn't cover such everyday problems.

Myth #5. Buying an extended warranty from a store is your only choice: False

It's a good idea to research extended warranties and home tech protection plans besides those offered in stores. You may get a better deal, better coverage, and better terms like prepaid shipping, fast service, and a replacement device or reimbursement for electronics that can't otherwise be repaired.