Extended warranty

Extended warranties are one of the most profitable sources of income for electronics stores – but they almost never make sense for customers.

Why they're usually NOT worth it:

❌ You already have 2 years of statutory warranty in Germany/the EU (free of charge!)
❌ The probability of a defect in years 3–5 is statistically low
❌ The extended warranty often costs 10–20% of the product price
❌ Many types of damage (drops, water, wear and tear) are NOT covered

Sample calculation: laptop for €800. Extended warranty to 5 years: €120. Probability of a defect in years 3–5: approx. 8%. Expected benefit: €800 × 8% = €64. You pay €120 for €64 of expected value – a bad deal.

Exception: for very expensive devices (TVs over €2,000, professional cameras) an extended warranty CAN make sense – but only if it also covers accidental/drop damage.