CENTRAL OHIO -- Stores are offering holiday shoppers warranties or protection plans, but are they worth the cost and will they will honored if the company goes out of business?
Many retailers are on the brink of going out of business. In fact consumer experts are warning shoppers not to buy gift cards this year in case the company files for bankruptcy.
How about warranties, though?
Many electronic products offer warranties -- for a price.
NBC 4 Mike Jackson gets answers on whether those warranties will be honored if the company collapses.
Usually offered on costly products, an extended warranty kicks in after the manufacturer's warranty runs out.
The insurer will repair or replace the item for a specified period of time. With a big-ticket item, it's like having added insurance in case something happens, but that extra has trickled down to less expensive products.
You may want to pass on an extended warranty for a cell phone; the warranty could equal or exceed the cost of a new phone.
What if you buy an expensive new television? You may want to pay for that extra piece of mind, but what if the company closes its doors before the warranty expires?
Many extended-warranty plans are provided and administered by third parties and typically are not affected by a retailer or manufacturer going bust.
Some warranties are good for a year; others are as short as 90 days. Before you buy, you can research the warranty when you check out the specifications on a manufacturer's Web site.
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