Warranties

So far in this book we have defined the various types of warranties:

• Manufacturer's warranty

• Lifetime warranty

• Standard warranties

• Cell phone insurance

• Extended warranties

• Insurance

Our focus is on extended warranties and why you may want to invest or not invest into this type of warranty for your mobile device.

It is amazing that today you can purchase an extended warranty on almost any product. There are even companies that sell low priced snorkeling masks and will try to sell you an extended warranty. In general, extended warranties have a very high profit margin, so many companies will sell these warranties; even on toys.

Here is the scenario—you have an expensive mobile device and/or smartphone. You have obtained this device via a discount as part of a package that you purchased that comes with voice, data, and a device. One example is where you want to purchase a $500 device, but if you purchase the mobile service at the same time then you get the device for $150.00. Many companies...