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TITLE: How Much is In-store 'Insurance' costing You?

AUTHOR: Colin Mc Caig

EMAIL: mailto:colin@cmcaig.com

AUTORESPONDER: mailto:warranties@demandmail.com

WORD COUNT: 475

KEY WORDS: Extended warranties, bad deal, shop around

DESCRIPTION: Extended warranties may seem a great deal, but
frequently turn out to be a costly luxury.

'How Much is In-store "insurance" Costing You?'

by Colin mc Caig

I saw it coming, but many of us still don't.

No sooner had I handed my card over to pay for my new DVD,
than I was hit with that famous question that meets the
unwary at the point of sale...

'Would Sir care to insure his purchase against breakage...'

It's a fact that high-street outlets still sell millions of
this 'insurance' each year.

Unfortunately, for Joe Public, though, they're rarely worth
the paper they're written on.

Indeed, in the majority of cases, it's generally cheaper to
pay for breakage as you go, particularly as many extended
warranties can come to more than *half* the cost of your
actual purchase.

Add to this, that we live in a competitive world with goods
bought today far more reliable than 10-20 years ago, you
really have to question who's getting the best deal here.

In fact, I can still think of a cheap video recorder I
bought 4 years ago. It came with a 1-year guarantee and
it's still going strong today.

So how do you make sure you're not caught out?

Well, here are a few pointers:

1. Don't fall for the standard 'hard sell' techniques until
you have all the facts up front. These are frequently
employed to foist unwanted warranties on the unwary.

2. How open is the retailer about the cost of their
insurance? Is the cost of the warranty displayed alongside
the goods?

3. Does the warranty include a 1-2 month money-back
guarantee if you don't make a claim in that period? And
after this, would you be entitled to a pro rata refund?

4. Is there an information booklet explaining your
statutory rights? This should state that you have the
right to cancel and that warranties are available
elsewhere.

On that last point, did you know that warranties bought
in-store can be up to 40% more expensive than those
available from other insurers and outlets?

And if you're a credit card holder, many cards now cover
your goods for a year beyond the retailer's offer.

Mmm...suddenly that 'insurance' isn't looking so great a
deal after all.

So, next time, don't feel pushed into an immediate
decision.

One final tip: If you have cash to pay, then why not make
the sales assistant work for the sale? You'll often find
their commission has already been 'priced in' to the item
they're trying to sell you.

Haggling is common practice in many countries, so don't feel
embarrassed! You'll find many stores prepared to do so to
win business - particularly if surrounded by a lot of
competitors!

So, There you have it...the next time you go shopping for
that new washing machine, try shopping around a little
first. That way, you can stop your 'insurance' becoming a
costly luxury.

© 2004 Colin Mc Caig

RESOURCE BOX:
============================================================
Want to know how some beat the debt trap and master their
money with ease? You can find out by grabbing Colin's
'Debt-Busting Secrets' mini-course. Send a blank email to:
=======>>>> mailto:colind@demandmail.com
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About the Author
Want to know how some beat the debt trap and master their
money with ease? You can find out by grabbing Colin's
'Debt-Busting Secrets' mini-course. Send a blank email to:
=======>>>> mailto:colind@demandmail.com