Extended Warranty: The Most Important Thing You Need to Know
Have you heard about extended warranty?
Announcements
Think about the following situation: you bought an appliance just the way you wanted it. However, one day, it simply decides not to turn on anymore.
In this case, as it is a relatively new appliance, just contact the store's support, right?
The problem is that when you called the company and looked for the paperwork, you discovered that the warranty expired a few days ago.
So what should you do now? If you had purchased the extended warranty service, you would have found a quicker solution.
To help you, we have created this article that will explain everything about extended warranty and why this purchase is so important. Let's go!
What is an extended warranty?
Extended warranty is a type of insurance, paid for by the consumer.
The service is regulated by SUSEP (Superintendence of Private Insurance).
Basically, it consists of maintaining the purchased product after the legal warranty, which is only 90 days, or contractual warranty, determined by the manufacturer, has expired.
It is important that the customer is aware of the warranty rules and terms.
After all, the purchased item will only be insured for what is described in the policy.
This means that the service may provide coverage for one type of damage but not another.
How does the extended warranty work?
With an extended warranty, you have the option to get additional warranty against damage.
It is usually offered for products such as cell phones, refrigerators, washing machines, televisions, among others.
The aim is to increase the duration of the original warranty, which is always offered when purchasing any new product.
There are some basic elements that are part of this type of insurance:
• Risk
• Insured
• Insurer
• Award
• Compensation
We must remember that coverage depends on the terms that were defined at the time of contracting.
Therefore, do not close anything without first being sure of your rights and the main benefits of this service.
What are the main types of extended warranty?
There are three types of extended warranties available on the market. Learn how each type works:
Original warranty extension
In this modality, the guarantees and exclusions made by the manufacturer are offered.
Extended original warranty extension
Here, the service offers greater coverage, as in the package, you can find everything the manufacturer offers, in addition to additional features.
Reduced warranty extension
In the reduced warranty extension, the coverage is less than that offered by the manufacturing company.
It is a type of insurance that is normally taken out when purchasing vehicles and goods that only have a legal guarantee.
In short, it is a protection that insures any product purchased in Brazilian territory.
Why is extended warranty important?
The extended warranty becomes valid as soon as the legal or manufacturer's warranty ends.
So, let's say the manufacturer gave you a one-year warranty, right? But to be on the safe side, you decided to purchase an extended one-year warranty.
This way, you can go two years without worrying about it, because in case of problems, you can count on coverage!
In other words, this insurance, in a way, helps you save money.
After all, with this service, if something happens, you won't need to make new purchases any time soon or spend extra on technical services.
For these reasons, we recommend hiring the service!
What are the main advantages of the extended warranty?
You already know how the extended warranty works and why it is important.
But now, it's time to understand how this service can bring more peace of mind and convenience to your daily life. Take a look:
1. Product protected for longer
As we said, when you hire this service, you will have the product in question, whether it is a household appliance or electronic device, protected for a longer period.
These products in question represent relatively high expenses.
Therefore, if you have to buy a new refrigerator or washing machine, for example, you will incur losses that may affect your finances and make you have to use your emergency reserve.
Therefore, the extended warranty service offers excellent value for money, because if there is a problem with these items, you won't have to worry about making a new purchase and spending more money.
2. Consumer receives a refund or a new product in the event of a claim
If the only solution is to actually buy a new product, you won't need to worry about this.
In fact, that’s one of the reasons why you’re hiring the service, isn’t it?
3. It's cheaper than paying for repairs
In some situations, the cost of repairs ends up being more expensive than expected.
And the extended warranty is almost always cheaper than the cost of the repair!
Is it possible to cancel the extended warranty service?
This is one of the main questions for those who want to hire this service for the first time.
Well, the National Council of Private Insurance (CNSP) defined very specific rules for the marketing of this insurance.
If within a period of seven days you decide that you want to cancel your subscription to the service, you are entitled to a refund of the premium amount.
After the cooling-off period, you must find out about the conditions established for cancelling the contract.
It is important to remember that no consumer is obliged to purchase an extended warranty.
Before signing any contract, check whether the extended warranty meets your main needs.
Why is extended warranty considered a type of insurance?
This service has the five basic elements of insurance.
Therefore, the risk is fully insurable, as it has all the conditions to do so.
Furthermore, the extended warranty is made through a contract between two parties, whereby one of them, upon collection of the premium, has to compensate the other for any possible loss.
Conclusion
Now you know everything about extended warranty and the reasons why it is worth taking it out.
However, as we said, always read the contract carefully to make sure that this service is worth it for you!
