Are Extended Warranties a Good Investment?

The fear of spending hundreds of dollars (or more) to repair a broken stereo or electronic component is often enough motivation to buy an extended warranty. Extended warranties are usually the last decision you'll make before completing the purchase of an audio component or system. Salespeople are also very motivated to add the warranty coverage to the sale. But, are extended warranties always a good investment? The answer to that question depends on the type of product and the warranty coverage offered. Sometimes it's a good value, other times it's not. Here are some things to consider before making a decision to buy extended warranties.