At the checkout, online or in the store, you are often offered a protection plan for a TV, laptop, phone or appliance. Before you pay for one, it helps to know what you already get for free: the manufacturer's warranty and the protections that state and federal law give you. This guide follows the Federal Trade Commission (FTC). General information only, not legal advice. Facts checked November 9, 2026.
Three kinds of protection
| What it is | Cost | |
|---|---|---|
| Written warranty | The manufacturer's or seller's promise to stand behind the product, for example to repair or replace it for a set time. | Included in the price |
| Implied warranty | Unspoken promises created by state law: the product will do what it is supposed to do ("a car will run and a toaster will toast," in the FTC's words), and it fits a particular job if the seller advised you it would. | Free, by law |
| Extended warranty or service contract | A separate contract for repairs or maintenance for a set time, often sold at checkout or later by phone or mail. | Extra |
What the law already gives you
- You can read the warranty before you buy. The FTC says that whenever there is a warranty, the law says it must be available for you to read before you buy. Stores can show it near the product or give it to you when you ask; online and catalog sellers must include it or say how to get it.
- "Full" or "limited". Under the federal Magnuson-Moss Warranty Act, a written warranty on a consumer product that costs more than $10 must be labeled "full" or "limited". A full warranty includes free repair for any owner during the warranty period and a replacement or a full refund if the product cannot be fixed after reasonable tries.
- Implied warranties. They apply even without a written warranty, unless the seller says in writing that there is no warranty or sells the product "as is", where state law allows it. They can cover problems a written warranty does not, and in some states they last as long as four years.
- No brand-name parts trap. Generally, a company cannot make you use its own parts or repair service to keep your warranty, unless it provides them free or the FTC has given it a waiver.
- A seller that sells you its own service contract cannot take away your implied warranties. Federal law does not let a business disclaim implied warranties on a product if it gives a written warranty or sells its own service contract on it.
Sources: FTC: Warranties and the FTC's guide to federal warranty law.
Before you buy a protection plan: questions to ask
- Does it cover more than the warranty you already have? The FTC says a service contract is not a good value if it does not offer more coverage than the warranty that came with the product. Many plans start only after the manufacturer's warranty ends, or cover the same repairs for the same time.
- Who stands behind it? The plan is only as good as the company responsible for the coverage, which may be a company you do not know. Search its name with "review" or "complaint", and ask your state consumer protection office.
- What does it really cost? Look beyond the price: deductibles or fees per repair, shipping to a repair center, transfer fees and limits on what it pays.
- What is covered? The FTC's rule of thumb: if it is not listed in the contract, assume it is not covered. Check accidental damage (drops, spills), batteries and whether a claim can be denied because of missed maintenance.
- How do claims work? Who does the repairs, how long they take, and whether you have to send or bring the item back.
- Could you cover a repair yourself? The FTC notes that putting money in a savings account can be a better option for some people.
Source: FTC: Extended warranties and service contracts. If you use a credit card for big purchases, also read your card's terms: some cards add their own benefits, which vary by card.
Watch out for "your warranty is about to expire" calls
The FTC warns about companies that call or send mail years after you bought something, often a car, saying "act now, your warranty is about to expire." Unsolicited calls from a company with no connection to your seller are probably illegal. Do not give personal or financial information or make a first payment before you have read the contract. Report these calls to the FTC at ReportFraud.ftc.gov and to your state attorney general.
If something breaks
- Find the warranty and the receipt, and read what the warranty requires.
- Contact the seller first. If that does not solve it, write to the manufacturer at the address in the warranty, by certified mail with a return receipt, and keep copies.
- If the company still does not resolve it, report it to the FTC and your state attorney general. If you paid by credit card, you may also be able to dispute the charge (FTC).
Frequently asked questions
Is an extended warranty worth it?
It depends on what it adds to the coverage you already have, its total cost with fees and deductibles, and the company behind it. The FTC says it is not a good value if it does not offer more coverage than the product's own warranty.
Does the law require a warranty?
No. Federal law does not require a business to give a written warranty. But implied warranties under state law apply unless the product is sold "as is" where state law allows it.
What is the difference between a full and a limited warranty?
A full warranty includes free repair for any owner during the warranty period and a replacement or full refund if the product cannot be fixed. A limited warranty gives less, so read what it covers.
Will using another shop void my warranty?
Generally no. A company usually cannot require you to use its own parts or service to keep your warranty unless it provides them free. It can refuse to cover damage caused by those other parts or that service.
Someone called saying my car warranty is expiring. Is it real?
Be very careful. The FTC says unsolicited calls like this from companies with no link to your seller are probably illegal. Do not share personal information or pay, and report the call at ReportFraud.ftc.gov.