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3.2. Extended warranty

An extended warranty is designed to cover faults and issues for a particular product after the manufacturer’s warranty has expired. Often sales or customer service staff will try and sell you an extended warranty when you make a purchase, but many credit cards offer this protection as a complimentary extra for purchases made with the card.

It is worth noting that the value of extended warranties has come under fire from consumer advocate group CHOICE and ABC TV’s series The Checkout, both of which have shown that these warranties usually don’t offer more value or coverage in the long run.

TIP: Keep all your proof of purchase and manufacturer warranty details somewhere safe just in case you ever need to claim extended warranty insurance through your credit card.