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Extended warranties are probably not worth the money.

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I have always been suspicious of the “extended warranty” offered in the checkout lanes of some of my favorite retailers. I have always said no – it just seemed a little too scammy to me. Turns out my instincts were right.

Today, Consumer Reports is launching a full-on campaign to warn electronics buyers that extended warranties are NOT worth the money. Most retailers push the extended warranty, and for some of the big-ticket items, we may be tempted to shell out the extra money to reduce our risk. BUT, here’s what Consumer Reports says:

• Products seldom break within the extended-warranty window (typically around three years), our data show.
• When electronics and appliances do break, the repair often costs about the same as the cost of the warranty.

They DO recommend the warranty for certain items, so be sure to check out their site if you are in the market for electronics.

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