When Warranties Are a Waste -- Savings Experiment

There's something reassuring about buying a warranty. Paying that little extra for peace of mind ensures that, whether or not you ever use it, you know that your phone, computer, refrigerator or microwave is completely safe from breakage -- and your wallet is safe from paying for the high cost of a replacement.

But what if your wonderful warranty is nothing more than a drain on your wallet? In many cases, warranties cover repairs that are unlikely to happen, duplicate coverage that you already have, or charge you too much for the service that they provide. By answering a few simple questions, you can determine if your warranty is a great deal or a huge waste of money.