Do extended warranties ever make sense?

When the sales clerk asks if you would like to buy an extended warranty to protect your purchase, what do you say?

The companies that sell these protection plans claim they're a good value, providing convenience and peace of mind.

Consumer Reports says they're not worth the money. The editors say most products that fail, do so within the manufacturer's warranty period. If something breaks during the term of the extended warranty, the repair costs tend to be less than the cost of the service plan, they say.

On the other hand, some extended warranties now offer protection against accidental damage; something that is not covered by the manufacturer's warranty.

Drop your cell phone in the toilet, step on it, run it over with your car and you'll get a new phone after you pay the deductible.

Remember, you don't have to buy an extended warranty on the spot, so don't let anyone pressure you. Look for a service plan that gives you a 30-day free trial and lets you cancel at any time with a pro-rated refund.

More Info: Thinking about buying an extended warranty? Read this first