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Extended warranties are ubiquitous. They are no longer limited to big-ticket purchases such as refrigerators, washing machines, and computers. Even when you buy a cheap $50 printer, the salesclerk may offer an extended warranty to go with your purchase. Most people bite the bait and think the cost is well worth it for a little peace of mind. Here are five reasons, though, why you should reconsider next time you’re being offered an extended warranty.

1. You’re paying more than you should. Most extended warranties are impulse purchases. They’re offered to you at the same time you purchase the product. You don’t get to shop around for the best deal on a warranty. No wonder these warranties are overpriced. Electronics retailers such as Best Buy supposedly make a big chunk of their profits from extended warranties.

2. You’re already covered. Many products already come with manufacturer warranties. If you think those aren’t good enough, you should know that your credit card may provide extended warranty coverage as well. American Express cards double the manufacturer’s warranty for a period of up to a year. Many Visa and Mastercard credit cards offer similar protection. Read your card member agreement or call your bank to inquire about the exact terms.

3. You will lose it. Many people actually lose or misplace their warranty documentation. Some folks even forget they purchased a policy.

4. You won’t be covered. Many extended warranties won’t cover accidental damage or normal wear and tear, which are the reasons most household products break down. Policies that do cover accidental damage, on the other hand, are more expensive and can cost more than the actual repairs that may be needed.

5. You won’t need it. The quality of most consumer products has improved significantly. Many products are much more durable than people assume. If they break down at all, it’s usually after the extended warranty period has expired.

The only time you really should consider getting an extended warranty is for truly high-priced items such as laptops and big-screen TVs, which are not only more likely to break down but also have a relatively high cost of repair. Even these items, however, are coming down in cost fairly quickly.

Photo Credit: Gesika22

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