Do you need an extended warranty? |
 |
| Vincent Drayne/NYT Wirecutter |
It’s a big weekend for big-ticket items. Sales on major home appliances, including mattresses, fridges, and washing machines, abound. (Most are lousy deals, by the way. These are good, though.) Analysts estimate that of everyone shopping Memorial Day discounts, roughly 30% will purchase an extended warranty to go along with it.
Should they be? Probably not. Most people lose a lot of money on them writes Liam McCabe in his latest deep-dive. And yet we fall for them anyway. Let’s break down some of the math, shall we?
Over time, for every $100 bet, here’s what you can expect to lose (on average) on …
- Blackjack: 50 cents
- Craps: $1.41
- Quarter slots: $8
- Extended warranties: more than $70
|
— roughly the amount Best Buy reportedly earned from extended warranties last year, accounting for around 40% of its entire net earnings
— the amount of in-effect protection policies Allstate reported in 2025, which generated $2.8 billion in premium payments from policyholders
Want to learn more about the casino-like business of extended warranties? Take our quiz.
We independently review everything we recommend. When you buy through our links, we may earn a commission. Learn more ›
One last thing: A message from Liam |
 |
| Aubrey Patti/NYT Wirecutter |
|
|
 | Were you forwarded this newsletter? Sign up here for The Recommendation. Independent reviews, expert advice, and intensively researched deals from Wirecutter experts. Get it in your inbox |
|
|
|
Thanks for reading.
You can reach the Wirecutter Newsletters team at newsletters@wirecutter.com. We can’t always respond, but we do love to hear from you.
