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The Ultimate Extended Product Warranty Quiz
by Staff
Just bought a new, big-ticket electronic item? Being pressured by the salesperson to purchase an extended warranty? Not sure if by doing so you are making a good investment or getting ripped off? Take our quiz and learn more about the pros and cons of purchasing an extended warranty.

When does a product's extended warranty begin?

  • from when you purchase the item
  • from when your manufacturer's warranty expires
  • six month from when your manufacturer's warranty expires

Statistically, when is a product most likely to break?

  • as soon as the manufacturer's warranty expires
  • early on, or many years down the road
  • after five years

How much profit do retailers usually make from extended warranty?

  • 1 to 5 percent
  • 10 to 20 percent
  • 40 to 80 percent

Why may it be a good idea to purchase extended warranty on an expensive item?

  • If you're already spending that much money, you may as well spend a little extra and go all out.
  • Expensive items usually cost a lot to fix.
  • Expensive items are more complicated and therefore more likely to break.

What percentage chance is there that a PC will break within the first three years of purchase?

  • 10 percent
  • no greater chance than any other product
  • 37 percent

What is another product that is likely to need repair in the first three years of purchase?

  • a rear projection TV
  • an oven
  • a hair blow dryer

What kind of personality is best off buying extended warranty?

  • the spendthrift
  • the absent minded, clumsy type
  • the anxious type

What does extended warranty for a cell phone usually cover?

  • lost or stolen cell phones
  • lost or accidentally damaged cell phones
  • water damage

Why may it be a good idea to get extended warranty for a BlackBerry?

  • It is an item that often gets stolen.
  • It is an item that is used hard.
  • It is an item that breaks easily.

Where is the most inexpensive place to purchase an extended warranty?

  • online
  • direct from the manufacturer
  • in the mall

Which credit card companies give you an automatic extended warranty?

  • Capital One and Simmons First National
  • Bank of America and HSBC
  • American Express and higher end Visa and MasterCard

What are two products that rarely break?

  • irons and toasters
  • PCs and televisions
  • refrigerators and ride-on mowers

When requesting a repair using your extended warranty, what is the procedure?

  • You must fill out an online form.
  • You must mail them the defective product.
  • You must return the item to the store you purchased it at.

What is a common extended warranty trap you need to be aware of?

  • A product will not be replaced, only repaired.
  • The warranty does not cover regular wear and tear.
  • Often, the warranty altogether costs more than it does to replace the item.

What is the total annual amount spent on warranties?

  • $1 billion
  • $5 billion
  • $15 billion