Are Extended Warranties Worth It?

There is no single answer, because "extended warranty" covers very different products. This page sets out what to compare, using the terms on a card issuer's page, Apple's AppleCare page and US federal law, read on October 26, 2026. The plan's own terms are the ones that apply.

Three kinds of coverage

What a credit card can already give you

Some cards add time to the maker's warranty at no extra cost. Chase, for example, says its Sapphire cards add one year to an eligible US warranty of three years or less, up to four years from the purchase date. A laptop with a three-year warranty bought on the card could therefore be covered for four years.

The catch is scope. Chase says the extra year covers only what the original warranty covered, and payment is limited to the lower of the repair cost, a like replacement or the amount you charged. Motorized vehicles, items bought for resale or business use, and rented or leased items are excluded. To claim, you need the itemized receipt, the original warranty and a repair estimate or invoice.

Card benefits differ by issuer and card. Check your own card's guide to benefits before you pay for a plan.

What a paid plan adds

A paid plan earns its price when it covers things a warranty never does. AppleCare+ and AppleCare One, for example, add repairs for accidents such as drops and spills, battery service once capacity falls below 80 percent, and theft and loss coverage on some plans. Those repairs carry service fees: on iPhone, Apple lists $29 to $99 for screen or back glass damage, $99 for other accidental damage and $149 for a theft or loss replacement. AppleCare One starts at $19.99 a month for up to three Apple products.

A quick way to decide

Ask these questions before you buy a plan at checkout:

1. What breaks it? If the likely risk is a drop or a spill, a defect-only warranty, and any card extension of it, will not help.
2. What does it already have? Read the maker's warranty length and your card benefit first. A plan that only repeats them adds little.
3. What does a claim cost? Add the plan price and the service fee, and compare that with the repair or replacement price.
4. Who stands behind it? Note whether the store, the maker or a third party pays claims.

Your rights stay in place

Under the federal Magnuson-Moss Warranty Act, a seller who sells you a service contract at the time of sale, or within 90 days after, cannot disclaim the implied warranties on that product. A plan does not take away the basic legal protections you already have.

Store plans on Wiki Shopping

For store-specific terms, see Best Buy protection plans, AppleCare plans and the Costco warranty.

Sources

Chase, Apple and the US Code (Cornell Legal Information Institute), listed under Sources below. Checked October 26, 2026.

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