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Is Extended Warranty Worth It?

Updated on April 16, 2016
VirginiaLynne profile image

VirginiaLynne is a homeowner who likes to share her creative ideas for home renovation and home maintenance tips.

What to Buy with Credit Card Extended Warranty?

Dishwasher. We replaced our dishwasher using our Capital One MasterCard Extended Warranty.
Dishwasher. We replaced our dishwasher using our Capital One MasterCard Extended Warranty. | Source

Check Credit Card Warranty Protection First

Tempted to pay for an extended warranty on an appliance or electronics? No one wants to be burned when their flat screen breaks one month after the warranty expires. However, most people don't realize that you can get extended warranty benefits for free with many credit card purchases. You may already own a credit card which offers extended warranties on purchases, or if you don't, it can be well worth your while to get one

How Can I find out if My Card has Extended Warranty Protection?

This is one credit card perk everyone can use. Lots of cards have it, but many people don't know about it. You may have it on one card and not on others, so it pays to check before you make any big purchase. If you aren't sure your current credit card has extended warranty protection, find out by:

  • Calling the number on the back of the card
  • Checking the information on the card online.
  • Or, digging out your credit card agreement and looking at the fine print

Do Credit Card Companies Pay on an Extended Warranty Claim?

Yes! In fact, the morning I wrote this article, I cashed a check today from Capital One MasterCard for $469 for extended warranty protection on a dishwasher that had a complete electrical panel failure just two months after the original warranty expired. However, I almost didn't get that check because I had forgotten about my credit card extended warranty protection

How Does Credit Card Extended Warranty Work?

I'll tell you about our experience to show you. I've been a loyal Sears customer on appliances for years, but my latest experience has changed my mind. After my second Kenmore Ultra Wash failed just a couple of months after the warranty expired, I got fed up. The repair bill for the $700 machine was $500! The Kenmore person said for an additional $200 on top of that repair bill, I could get an "extended warranty" for another year! Give me a break

Put Phone on Credit Card with Extended Warranty

Consider putting your phones and other electronics on a credit card with extended warranty to get additional coverage.
Consider putting your phones and other electronics on a credit card with extended warranty to get additional coverage. | Source

Do you Have Extended Warranty?

Probably so. After fuming a bit and wondering who I could complain to about this, I remembered reading something about extended warranty in the fine print of one of our credit cards. Luckily, when I checked, I discovered we had purchased this dishwasher on the Capital One MasterCard which had an extended warranty which extends the original purchase warranty for one additional year. As I did a bit of research, I found out that most credit cards offer this service, but a lot of people don't realize it

Policies for Extended Warranties on Mastercard, Visa, Discover and American Express

Not all credit cards offer extended warranties, and the warranty coverage is unique to each card. It pays to look up the fine print on your card. Most cards offer a one-year extension beyond the manufacturer's warranty, but some may do this for just a second year (like our MasterCard) while others may offer an additional year beyond a 3 to 5-year manufacturer warranty (some American Express cards). On all cards you need to:

  • Buy the merchandise using that card.
  • Keep your original receipt, warranty information from the manufacturer, and credit card statement (if you go paperless, be sure to download statements each month since many credit card companies only provide one year of back statements, but your claim may be for up to 2 years back).
  • Contact the credit card company as soon as you realize the item is broken to find out what you need to do. Most companies have a limit on the time you can make a claim.


How to File a Claim on your Credit Card Extended Warranty

Our experience with our extended warranty through Capital One credit cards was a completely different experience than the hostile sales talk with the Kenmore service representative. Capital One responded to our email quickly and courteously, giving us all the information we needed. Moreover, they sent us reminders after a couple of weeks to let us know of our time limit for turning in the paperwork.

What did we have to send them to file our claim? Beyond the initial email, which told them what happened, Capital One had us send them (scanned and emailed copies):

  • Extended Warranty Claim Form
  • Original Sales Credit Card Statement from the Purchase (remember to save these!)
  • Appliance Repair Estimate
  • Original Sales Receipt
  • Original Warranty from Kenmore

We had 180 days to send all the forms in. Within a couple of weeks of getting all the information, they sent us a check.

Tips on Credit Card Purchases

Check Extended Warranty Policy: When you are thinking about what credit card to use on a purchase, you might want to consider the policy of the extended warranty. With Capital One MasterCard, they just send you a check for the amount of the repair to the item. In the check, they included the amount we had to pay to have the dishwasher evaluated by a repairman. Because we had not remembered about the extended warranty when we had him visit, I had to go back to him to have him prepare a more formal "estimate" to send into the credit card company. In the future, I would know that I needed that from any repairman.

Don't Buy Extended Warranty from Store: The extended warranty from the credit card is "secondary." That means that if you purchase one from the store, you use that one first. However, I just got the card agreement from Citi and found out that they extend the warranty after any store warranty. That could be a good deal if you purchase an appliance which tends to break within 5 years or so. With a store warranty and the credit card one, you might have a good chance of getting your money back.

Replace Rather than Repair: Once we got the check, we had the option of repairing or replacing the item. Rather than using the money to repair the Kenmore which broke so quickly, we decided to buy a new Amana Standard Tub without all the bells and whistles. Of course, this time, I knew to be careful to buy the dishwasher with my Capital One card, knowing that I now had two years of warranty protection!

Have you made a claim using credit card extended warranty coverage? Please leave a comment and tell us your experiences.

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    • VirginiaLynne profile image

      Virginia Kearney 5 years ago from United States

      I don't like doing them either. That's why I find this method so much better. The credit card company has a lot more clout than I do in going after someone who makes a faulty product.

    • seigfried23 profile image

      seigfried23 5 years ago

      Great hub. Personally, I never do extended warranty because of the difficulties my family faced in recouping coverage we were owed on items.