Are Extended Warranties a Good Deal?

Money Monday focus for today is basically about buying insurance on stuff so you don’t have to pay full price to replace it when it breaks.

My parents had a Sears Kenmore washer & dryer for over 20 years and every couple of years they would renew the extended warranty.  They thought it was a good investment.

Compare that to my experience.  My wife and I also have a Kenmore washer that is over 20 years old.  We didn’t buy it new.  We bought it for around $100 ten years ago from a used appliance store.  No warranty either.  Works fine.

What about electronics, like a flat screen tv?  Check out this compelling article from the Dumb Little Man website which outlines a similar argument I gave my wife a couple years ago when we were replacing our tvs.