All Things Music

Not All Warranties Are The Same, Do You Know The Difference?

Before you go buy your next warranty make sure you know what you are buying. There are two types of warranties; Extended and date of purchase –

Extended Warranty: An extended warranty, sometimes called a service agreement, or a maintenance agreement, is a prolonged warranty offered to consumers. Coverage begins after the manufacturer warranty ends eliminating duplicate coverage.

Date of Purchase Plans: A Date of Purchase warranty, sometimes called a service agreement or replacement plan, is a warranty offered to consumers where coverage begins the date of purchase.

Here’s the difference. If you buy a new item it usually comes with a 1-year manufacturer warranty, which supersedes the warranty coverage – read any contract and you’ll see this. At any rate, let’s say you purchased a 3-year date of purchase plan you really purchased 2-years. Most new electronics come with a 1-year manufacturer warranty so the first year you’re protected under the manufacturer’s warranty.

Now, if you had purchased a 3-year extended warranty coverage would commence 12 months AFTER the date of purchase. Do you see the difference? ALWAYS buy an extended warranty and not a plan that begins date of purchase, especially for new items!

WarrantyFeed sells true extended warranty coverage and their prices are 60% lower than retailers. In fact, on average, you’ll pay only 10% of the products purchase price and they are the only warranty service to remind its customers when their extended warranty coverage becomes effective. How’s that for service?

To sum it up. Extended Service Plans. GOOD. Date of Purchase Plans. BAD. Any questions?

About the Author

Do you own a Web Store? We invite you to join WarrantyFeed and become a dealer today.