What Is an Online Warranty?

What Is an Online Warranty?

An online warranty is a merchandise warranty offered through the Internet, usually from a third party. This form of product protection typically covers items such as electronics or appliances but may also be offered on other merchandise.

Many new items come with a one-year manufacturer's warranty with some restrictions. Online warranties purchased through third parties may extend a manufacturer's warranty, or they may offer less restrictive conditions than those of the manufacturer's warranty; they may also do both. Additionally, online warranties can often be purchased for used items, while manufacturer's warranties typically only cover new goods. Online warranties can come with restrictions, however, including only covering approved items or brands.

A number of online warranty companies exist, and they generally offer extended warranties that are less expensive than those offered by merchandise retailers. They are able to do this because their operating costs are not as high.

Electronic Warranty offers warranties on tech merchandise for up to 70 percent below those of retail stores. Consumers can email or send in their receipts for online storage, so they are easy to find if needed. Electronic Warranty provides customers with free quotes via its website.

Square Trade is a popular online warranty company. It sells coverage for mobile phones, computer equipment, televisions and other items. This company offers extended warranties only and does not offer coverage for loss or theft. Claims can be filed online or over the phone.