Should you buy that extended warranty?

Set of home kitchen appliances in the room on the wall background. - stock photo appliance tile home tile / Getty Images

When purchasing electronics, home appliances, and other devices, many retailers now offer an extended warranty, sometimes called a protection plan or service contract. But is the peace of mind worth the extra price?

Here are BBB's tips on what to consider before you purchase an extended warranty:

Determine whether an extended warranties is worth the cost. Review the manufacturer's warranty first. Since most products already come with a free manufacturer's warranty, extended warranties often provide overlapping coverage you might not really need. For example, if you buy a washing machine with a 5-year manufacturer's warranty with decent coverage, do you really need the 2-year extended warranty offered by the store? Probably not.

Check your credit card benefits. If you make a purchase with your credit card you may already qualify for an extended warranty, free of charge.