Editing Extended warranty (section)

== Overview ==
An extended warranty is coverage for electrical or mechanical breakdown. It may or may not cover peripheral items, wear and tear, damage by computer viruses, re-gassing, normal maintenance, accidental damage, or any consequential loss.<ref>{{cite news| url=https://www.nytimes.com/2009/05/28/garden/28repairside.html | work=The New York Times | title=Should You Buy an Extended Warranty? | first=Julie | last=Scelfo | date=2009-05-28 | access-date=2010-03-27}}</ref> Most state insurance regulators have approved the inclusion of normal wear and tear, accidental damage from handling, rental car and towing, power surge and other coverages in addition to the standard coverage for defects in materials and workmanship. The indemnity is to cover the cost of repair and may include replacement if deemed uneconomic to repair. It is important for consumers to read and understand the terms and conditions offered at the point of sale. In retail consumer electronics, extended warranties cost 20% to 30% of the price, and give sales associates up to 15% commission at some retailers.<ref>[http://www.cbc.ca/consumers/market/files/money/extended_warranties/ "Extended warranties: A deal or dud?" article] from CBC Marketplace</ref><ref>[http://www.warrantyweek.com/archive/ww20061024.html "Extended Warranty Pricing"] from WarrantyWeek.com</ref>

[[Consumer advocate]] groups, such as the [[non-profit]] [[Consumers Union]], advise against purchasing extended warranties unless they can be purchased at manufacturers cost. David Butler of the Consumers Union says, "The extended warranty is definitely in the best interest of the company because if the product breaks down they want you to be satisfied with it and buy another one when the time comes, but isn't often in the best interest of the consumer unless it can be purchased at cost with no or very little markup." Consumers Union said in 2006 that only two products deserved extended warranty consideration: [[projection television|projection TVs]] and [[digital camera]]s, as both are expensive to repair and require frequent repairs.<ref name="cbcnews">[https://www.cbc.ca/news/skip-extended-warranties-consumers-union-urges-1.597026 "Skip extended warranties, Consumers Union urges"] from [[CBC News]]</ref>  In spite of such advice, consumers frequently purchase extended warranties because they overestimate the frequency of failure.<ref>{{cite news |last1=Kwok |first1=Roberta |title=What companies don't tell you about extended warranties |url=https://qz.com/1735597/are-extended-warranties-worth-it/ |access-date=1 November 2019 |work=[[Quartz (publication)]] |date=1 November 2019}}</ref>