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How Much is In-Store "Insurance" Costing You? by Colin McCaig 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. © Colin McCaig is dedicated to helping others become debt free. Get his free three-part mini-course. Learn the powerful secrets to becoming debt-free, using only the money you have today. Send a blank email to: mailto:colind@demandmail.com

 

 

 

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