Financial protection
None of this is expert advice. It's what people worked out for themselves, usually the hard way — what actually helped, and what they'd tell someone standing where you are. Take what fits and leave the rest.
If you only read a few
Recognize that extended warranties are designed to generate profit for companies, not to help consumers.
Companies would not sell this insurance if they paid out more than they took in; around 80% of what they take in is profit.
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Own basic hand tools and learn basic maintenance to repair simple appliances yourself.
Most appliances are simple machines, and DIY repairs can save hundreds or thousands of dollars.
one person who lived it
Work out extended warranties by calculating what percentage of the purchase price they represent to judge the implied risk.
This helps determine if the seller is betting there is a significant chance the item will break during the plan period.
one person who lived it
Notify your investment and banking institutions that you were affected by a data breach so they can place a note on your account.
It does not hurt to have a heads up, though results may vary depending on the institution.
- Effectiveness varies by institution.
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Check if your driver's license number was used as a proxy for your SSN in older records, which may complicate identity verification.
In some past locations and times, driver's license numbers were treated as public SSNs.
- Specific to certain regions like Virginia in the 90s.
one person who lived it
Consider alternative mechanical breakdown insurance (e.g., Geico) for cars instead of dealership extended warranties.
It can be cheaper (e.g., $13/year vs $1700) while covering component failures up to a certain mileage with a small deductible.
one person who lived it
Read the fine print of your contracts or accounts, as it is worth the effort.
The detailed terms contain valuable information.
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Consider extended warranties for high-risk essential items like vehicles or electronics used by clumsy people or children, especially if they cover accidental damage.
These warranties can be worth the fee if you are prone to dropping items or cannot afford out-of-pocket breakdown costs.
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If you drive on harsh terrain like dirt roads where major repairs are nearly certain, consider buying an extended warranty.
The likelihood of expensive parts or labor breaking is essentially guaranteed in such conditions.
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Do not buy extended warranties for TVs under $800, as they typically last 5+ years beyond the warranty period.
The TV will likely be fine for the duration, and the extended warranty will expire by then.
one person who lived it
Check if your children's Social Security numbers were affected by the breach.
Children's numbers can be compromised.
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Check the manufacturer's existing warranty before purchasing an extended one from a retailer.
Manufacturers often provide substantial warranties (e.g., two years for headphones, ten for microphones) that are not always obvious on the product.
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Be skeptical of articles claiming settlement funds are running out, as this may be misinformation encouraging acceptance of inferior options.
Such claims may encourage people to accept free monitoring instead of claiming their money.
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Recover costs for ID theft insurance purchased after the breach if documented.
You can recover charges and time if you have documentation.
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Be skeptical of 'today only' warranty offers, as urgency tactics often indicate a bad deal designed to prevent research.
Sellers do not want to give you time to research why the deal is bad.
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Be wary of dealer-offered warranties for Jeeps, as they may be inferior to genuine Mopar parts despite being cheaper.
Dealer warranties are described as 'basically shit' compared to the real Mopar ones dealers try to upsell.
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Keep proof of purchase, original receipts, and warranty documents to help with credit card warranty claims.
Claims will not be processed without proof of purchase.
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Focus on protecting your Social Security Number, as it is permanent and cannot be canceled like a credit card.
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Avoid buying shipping insurance for packages.
It requires betting money against the carrier's ability to perform the job you already paid them to do.
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Record the name and call reference number when speaking with customer service about warranties.
This information allows you to file a complaint if they fail to provide complete information.
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Recognize that binding arbitration clauses in insurance contracts may prevent you from suing companies like Anthem for data breaches.
- Arbitration may be conducted by ex-judges whose livelihoods depend on the company's goodwill.
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Expect companies to focus on profit over security unless laws impose mandatory fines or jail time that make securing data cheaper than ignoring it.
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Understand that binding arbitration decisions are final even if they seem legally indefensible or ridiculous.
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