Purchasing a furniture protection plan can be a smart move in the event of an unforeseen incident. It is important to remember that when you purchase a furniture protection plan, it will not replace your homeowners or renters insurance policy.
What is extended purchase protection?
Purchase protection is an umbrella term for a range of insurance benefits that cover physical items you buy with the credit card. This could cover for damage to your new goods, extended warranty, price-drop protection and more.[1]
Why do I need a protection plan?
Product protection plans typically offer coverage for unexpected product issues, including defects, malfunctions, and accidents, for time periods longer than standard manufacturer warranties.[2]
Is a protection plan the same as a warranty?
Warranties are guarantees from the manufacturer against defects, while vehicle protection plans are offered at an extra cost by either your dealership or a third party and act more like insurance policies. These policies help cover the costs of vehicle repairs, should something go wrong.[3]
Is extend protection plan worth it?
Extended car warranties are worth it if you want your coverage to continue after your factory warranty expires. Without a warranty, you are left to cover repair costs on your own. An extended warranty can also be worth it if you value peace of mind when it comes to budgeting for repair costs.[4]
Does purchase protection cost money?
Purchase Protection is free, and automatically covers eligible orders. Purchase Protection means that you can request a refund if: You didn’t receive your order. The product arrived damaged or different than described on the listing (example: the condition isn’t accurate).[5]
How do protection plans make money?
Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets. Like all private businesses, insurance companies try to market effectively and minimize administrative costs.[6]
Is a protection plan a one time payment?
Payment protection plans charge the customer a small, recurring monthly fee based on the amount borrowed and the conditions covered.[7]
When should I buy a warranty?
Manufacturers usually require that you purchase an extended warranty on the day the vehicle is purchased or before the factory warranty expires. Third-party contracts can be purchased for new or used vehicles at any time. Some third-party provider coverage extends up to 250,000 miles.[8]
Does purchase protection cover damage?
Typically, credit card purchase protection applies to purchases you make with your credit card for a specific amount of time. With this important coverage, you can be reimbursed for an item or receive a replacement if your purchase is damaged or stolen, usually within 90 to 120 days.[9]
What is not covered by the warranty?
A description of damage not covered by the warranty is provided on the The most frequent causes for exclusion of liability under the warranty include: moisture or liquid penetration, mechanical damage — i.e. damage to the device as a result of a fall, impact, etc.[10]
What happens if I replace something covered by warranty?
If the item is covered by warranty, the manufacturer will repair or replace it free of charge.[11]
Why is it recommended to not purchase extended warranties?
About 1 in 5 consumers who use an extended warranty is dissatisfied with the repair, and service can take a long time or require multiple tries to get it fixed. There’s also the risk that the warranty provider will go out of business. Consider how much repairs would cost.[12]