Should I buy an extended warranty?

I go back and forth on extended warranties. Typically I'm already a little stressed about spending money when buying something where a warranty might be advisable. (TV, Washer, Dryer, etc). Although I did have someone try to sell me an extended warranty on a mouse I bought at Staples. For only $3.95 I could get an extra two year warranty on the $12.00 mouse. I declined.

My best warranty experience happened earlier this year. Our washing machine went on the blink. It was about 5 years old and I didn't even know if I had an extended warranty or not. However, I occasionally scan warranty documents into my computer, so I did a file search, and sure enough I found the warranty. I had 23 days until expiration. Yes!

Here are a few things to remember when considering whether you should purchase an extended warranty:

1. Usually they just add on to the existing manufacturer's warranty. So if Sony gives you a one year warranty on your TV then, the extended warranty doesn't kick in until after that.
2. If a product is defective it typically will fail within a short period of time. This isn't always the case, but if you are going to have a problem, it is probably going to be within the manufacturer's warranty period. The exception to this will be where you heavily use a product and just wear it out. Having an extended warranty on my washing machine is probably a good thing (we do a lot of laundry!), but having one on my treadmill - Not so much.
3. Put the warranty somewhere you can find it. Scanning it on to your PC is a great idea, but a paper file will work just as well as long as you can find it. Some stores put your warranty info into their computer, so even if you lose it you can still make a claim, but I wouldn't count on them having your back.
4. American Express used to have a program where when you purchased something with their card, they would double the manufacturer's warranty. Not sure if they still are doing this, but might be worth a call to them, before making a big purchase.

For more information on warranties, see this recent article in USA Today.