The pitch: You’re purchasing a new appliance or piece of electronic equipment, and the person ringing you up suggests that for a nominal price, you tack on an extended warranty that supplements or goes beyond what the manufacturer offers.
The truth: Some of these warranties duplicate coverage you already have from the manufacturer. You might be locked into using a particular service provider, or face inconveniences like having to ship the item somewhere at your expense or be without it for weeks while repairs are completed. The warranty might not cover wear and tear or damage caused by drops or spills. Also, check the terms of the credit card you’re using to buy the item; some extend this kind of coverage for free.
The exception: Based on a recent suggestion by Consumer Reports, computers — especially laptops and especially if you’re a student or frequent traveler and lug your machine around a lot — can break down after the standard warranty expires.