What You Should Know About Product Protection Plan

Clyde compiled a list of 10 important things to know about product protection plans—from what to look for in the fine print to understanding the average cost—to help you decide whether a protection plan can save you money in the long run.

Protection Plans Aren’t One-Size-Fits-All

Before considering any extended warranty or protection plan, check the manufacturer’s warranty. Federal law requires that customers be able to read the manufacturer’s warranty before making any purchase that costs more than $15.

For Products Built To Last, Long-Term Protection Plans Can Represent Major Saving

The longer you expect to own a product, the more it makes sense to invest in long-term protection plans like extended warranties.

Compare The Cost Of The Protection Plans To Average Repair (Or Replacement) Cost

You’ll also want to compare the cost of your monthly payments to the average repair before buying a protection plan or extended warranty.

Always Read The Fine Print For Filing And Processing Claim

Even terms you might think you understand can be defined differently. Some warranties define a product’s lifetime as the amount of time a product is available from that manufacturer, for example.

It’s Important To Weigh The Likelihood Of Product Damage That Aligns With The Plan

Once you know what kinds of damages or defects would be covered, consider how likely you are to take advantage of that plan.

Within five years, most cars lose more than half of their initial value. Electronics also depreciate quickly because so many new products come onto the market constantly.

Keep Overall Depreciation In Mind

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