Are Extended Warranties on Holiday Electronics Worth It?

For most holiday electronics, an extended warranty is not worth buying. A separately purchased extended warranty is generally a service contract, which means paid repairs that can duplicate free coverage during the same period. Consumer Reports generally advises shoppers to skip these plans because most covered repairs do not happen inside the limited paid window.

That advice fits holiday gifts, where an included manufacturer warranty plus possible card benefits already handle early defects.

Verification note: Program terms and availability can change. This page was checked against linked sources on November 14, 2026.

What you already get without paying

The Federal Trade Commission notes in Federal Trade Commission guidance on service contracts that buyers should compare any paid contract to the included manufacturer warranty first. The paid plan may cover the same repairs during the same time without added benefit. For example, Apple states its one-year limited warranty covers defects in materials and workmanship under normal use for one year from retail purchase.

It does not cover normal wear and tear or damage from accident or abuse. Experian explains in Experian explanation of credit card warranty benefits that paying with an eligible credit card can add up to one extra year to the manufacturer warranty at no cost. That free extension can duplicate a paid plan.

Why paid plans often cost more than repairs

Consumer Reports generally advises skipping extended warranties because most covered repairs do not occur during the limited paid-coverage window. On average, that timing makes plans a weak value. Consumer Reports found in Consumer Reports price comparison median plan prices of about $126 for major appliances and $21 for small products.

The typical repair without a plan cost only about $26 more than the plan itself.

How to read the terms before you pay

Under federal law, the Federal Trade Commission treats a separately purchased extended warranty as a service contract. Buyers should get price, backer, coverage, exclusions, deductibles, and claim rules in writing before paying. Ask for these items in writing: Retailer phone and device plans add per-claim service fees tied to device price, plus claim limits, according to Best Buy Geek Squad Protection FAQs.

Subtract those fees from any hoped-for savings and check accident, loss, and battery terms.

• price and company backing the plan
• covered repairs and specific exclusions
• deductible or service fee per claim
• claim limits and filing steps

When shoppers still take a second look

A SquareTrade study of 30,000 laptops projected 31% would fail in three years, with 20.4% hardware malfunctions and 10.6% accidental damage. Because SquareTrade sells warranties, that seller-funded sample overstates risk for all owners. The gap matters for gifts that may face drops or spills.

Manufacturer coverage often excludes accident damage, while retailer accident terms add fees and limits. Subtract the deductible and any free extra card year before you decide.