When you buy a big ticket item, extended warranties typically aren’t worth it. Paying with the right credit card typically offers some kind of purchase protection. If you’re still worried about your item crapping out, though, skip the warranty and save the amount you’d spend on it.
Consumer Reports put together a massive buying guide for extended warranties. Overall, the found those plans rarely come in handy. Here’s what they suggest instead:
Save the money you’d otherwise spend on service plans. Place it in a savings account, where you’ve socked away six months to a year of living expenses, or put it in a designated product repair/replacement fund. Then, when a product breaks, you’ll have the money to repair or replace it. Of course, you first should try your other options, such as contacting the manufacturer or retailer if you think the problem was the result of a defect, or using coverage you may have from your credit card. Another benefit is that the money you’ve set aside will be available if you need it for some other reason, such as paying your living expenses if you lose your job.
As they suggest, this is basically like having an emergency fund. If you don’t already have one, this is a good way to get started. You’re probably fine just skipping the warranty altogether, but just in case, try to save what you’d spend on it. That way, if your product does crap out, you’ll have a backup plan. Read Consumer Reports’ full guide for more detail.