Insurance

The Most Straightforward Guide to Extended Warranties

Jacob Stein
 on 
November 28, 2018

Warranties and insurance policies can be pretty confusing. But because warranties and insurance policies are such critical investments, it’s important that consumers have a clear picture of what they’re investing in.

At Clyde we believe that product coverage should be honest, simple, and straightforward. So, here’s our straightforward guide to how extended warranties work:

1. Extended warranties are also known as service contracts.

There are a number of differences between them and the manufacturer’s warranty. A lot of jargon is used in the insurance industry so it’s a good idea for shoppers to be familiar with some of these key terms.

2. Extended warranties are purchased separately from the product itself.

Unlike the manufacturer’s warranty, an extended warranty does not come included in the price of the product.

3. Extended warranties offer a greater level of product coverage.

Extended warranties not only increase the coverage period but they also typically protect products from a greater number of defects resulting from a wider variety of causes, such as accidental handling. Perhaps the greatest reason consumers should consider investing in an extended warranty is that accidents are a part of life.

4. A request for compensation is called a “claim.”

If a product does get damaged, the owner can file a claim with either the administrator or the underwriter of the coverage plan. Typically the administrator or underwriter will require some sort of proof that the product has been damaged and then they will compensate the owner of the product for their damages.

5. Extended warranties are not the same as insurance policies.

One of the main differences is that they won’t protect against loss or theft. Yet, purchasing an extended warranty is an affordable way for consumers to gain a rock-solid level of protection for some of their most valued purchases.

Insurance jargon can be intimidating and dissuade shoppers from purchasing coverage plans. This shouldn’t be the case. Clyde’s goal is to make product coverage as transparent and straightforward as possible in order to highlight that these plans can add a ton of value to the shopping experience.  

Interested in learning more? Drop us a line at hello@joinclyde.com!

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