You may also be obligated to take certain action, such as notifying the company of problems. You may not benefit from the extended warranty if the product is unlikely to need servicing or if the potential costs of repair is very low. You may have other expenses after you buy an extended warranty. Extended warranties, like insurance policies, often have deductible amounts. You may be charged each time an item is serviced.
Some expenses are limited or excluded.
In addition, you may have to pay cancellation or transfer fees if you sell the covered product or wish to end the contract. If the extended warranty is offered by a local retailer or dealer, you may only be able to get local service. Some vehicle service contracts may have a mileage radius and procedures for repairs outside the radius. Read your contract to see what requirements apply. Consider the possibility that problems may develop while you are traveling or after you move away from the area.