Is a NewEgg Extended Warranty Worth It?

You spend a lot of money on your electronics and tech accessories, so it makes sense to protect them, right?

NewEgg sells an extended warranty through SquareTrade which promises to protect your equipment long after the manufacturer’s warranty expires. Of course, it’s an additional cost and as we all know, warranties aren’t always worth it.

So how does the NewEgg extended warranty stack up? Here’s what we discovered.

What is the NewEgg Extended Warranty?

The NewEgg extended warranty is offered by SquareTrade, an Allstate company. The warranty covers mechanical and electrical failures under certain circumstances and provides you with extended support to figure out if you should repair or replace the item.

The warranty comes with many benefits, but like any extra coverage, it has its downsides. We show you both sides below so you can decide for yourself.

How Does the NewEgg Extended Warranty Work?

Like most electronics, New Egg’s products come with a manufacturer’s warranty. The length of the warranty varies by product, but on average, they are good for 90 days to 1 year. Any issues you experience with your product should first be discussed with the manufacturer to see if the issue falls under their warranty. Most mechanical and electrical failures not due to misuse, drops, or spills will likely fall under the manufacturer’s warranty.

After the first year, the NewEgg extended warranty may cover issues your electronic products have. It also covers you during the first year for accidents, like drops and spills.

Along with coverage for your product, the NewEgg extended warranty offers:

  • 24/7 customer support
  • A guarantee to repair or replace your covered item within 5 business days, if it takes longer, you can request a refund for the amount paid for the plan
  • Free shipping (both ways) for repairs
  • No deductibles
  • 100% coverage for parts and labor

In addition to electronics, the NewEgg extended warranty is good on other products including:

  • Cellphones
  • Jewelry and watches
  • Furniture and rugs
  • Mattress protectors
  • Glasses

How to File a Claim?

It’s best if you file a claim online. You’ll have proof of the claim and get the fastest service. Click here to start the process. You’ll need the product and the receipt to file the claim and you must file the claim within 30 days of discovering the issue.

When you file the claim, representatives will first try to troubleshoot the issue with you. If they cannot fix the problem by walking you through simple steps, they’ll ask you to send the product in or bring it to your closest location so they can determine if they will repair or replace the item.

Sometimes, SquareTrade will ask you to take pictures or a video of the problem you’re noticing so they can further diagnose the issue and/or make decisions so as not to waste anyone’s time. For example, a video may help them determine that the product can’t be repaired and must be replaced. This would eliminate wasting time sending the product in and having it evaluated only to find out it must be replaced.

What’s the Cost?

The cost of the NewEgg extended warranty varies based on the product and the length of the coverage. Most extended warranties through SquareTrade are for 3 years, but the cost can vary from $18 to $399+. 

What’s Covered on the NewEgg Extended Warranty?

Before you buy a NewEgg extended warranty, you should know what it does and doesn’t cover. Like we said earlier, during the manufacturer’s warranty period, everything falls under the general coverage unless it was an accident. After the manufacturer’s warranty expires, the NewEgg extended warranty may cover:

  • Mechanical failure
  • Electronic failure
  • Button failure
  • Hard drive failure
  • Power surge failure
  • Screen issues
  • Speaker issues
  • Defective batteries
  • Defective charging ports
  • Defective audio jacks
  • Accidents and spills (if you pay for accident coverage)
  • All parts and labor for covered issues

The plan lasts for the duration of the term (usually three years) or until you use up the plan’s value, whichever occurs first. The value of the plan is typically equal to the amount of the purchase price. 

What’s Excluded from the Plan?

Like most warranties, there are some exclusions from the NewEgg extended warranty including:

  • Damage occurring from misuse
  • Lack of maintenance or care
  • Theft or vandalism
  • Light bulbs
  • Batteries (except in certain stated situations)
  • Commercial use products

What’s the NewEgg No Lemon Policy?

The NewEgg extended warranty has a no lemon policy. This policy means if any covered product had two repairs for the same issue and needs a 3rd repair within a 12 month period, will be replaced. If you don’t want the item replaced, you’ll earn the cash value of the product. The cost of the replacement is limited to the total protection amount. 

How do you Transfer the NewEgg Extended Warranty?

If you give the product away or sell it to someone, you can include the NewEgg extended warranty with it. To transfer it you can log into your SquareTrade account or call 1-877-927-7268. Representatives are available 24/7 to help you transfer your warranty.

What are the Benefits of the NewEgg Extended Warranty?

Even though an extended warranty costs more money, it has benefits including:

  • Provides peace of mind should your item not work after the manufacturer warranty expires
  • Makes it easier to own the product for a longer period knowing you can have it repaired or replaced if need be
  • All benefits start day one but default to the manufacturer’s warranty if it’s still effective first
  • Coverage lasts up to 3 years
  • You can transfer the warranty to the next owner for free

What are the Downsides?

  • You must pay for the extra coverage which increases the cost of the product
  • You must buy the coverage within 30 days of buying the product
  • You must go through the manufacturer’s warranty first, which can be a hassle
  • The claims process can be tedious 

NewEgg Extended Warranty FAQs

Can you buy an extended warranty after you purchase a product from NewEgg?

Ideally, you should buy an extended warranty when you buy the product. If you didn’t and you decide you want the protection after the fact, you have 30 days from the date of purchase to get coverage. If you bought the item online, your 30 days starts the day you receive the item.

How do you use the NewEgg extended warranty?

If you buy the NewEgg extended warranty when you buy the product or within 30 days, you can call NewEgg customer service or file a claim online. Either way, the representatives will tell you how to proceed.

Generally, they try to troubleshoot the issue with you, so you don’t have to bring it into the store or ship it. If they can’t, they’ll ask for more details and proof to decide if they will replace or repair the item.

When does the NewEgg extended warranty start?

Technically, the extended warranty starts when the manufacturer’s warranty ends. But if you buy accidental coverage, or there is an issue the manufacturer’s warranty doesn’t cover in the first year, your NewEgg extended warranty may cover it.

What does free shipping both ways on the NewEgg extended warranty mean?

If you must ship your item to NewEgg or they must ship it back to you – the shipping charges are covered both ways. You don’t have to pay any charges to ship the product.

Does it cost anything to transfer the NewEgg extended warranty?

No, it is completely free to transfer the NewEgg extended warranty to the next owner. You just need basic information about the party taking ownership of the product to switch it over.

Final Thoughts – Is the NewEgg Extended Warranty Worth It?

It costs more money and doesn’t cover everything, so is the NewEgg extended warranty worth it?

It depends on a few factors. First, ask yourself how long you’ll keep the product. If this is a short-term purchase, it doesn’t make sense to buy a warranty that doesn’t start until after one year in most cases. But, if this is a long-term purchase, protecting your investment may make sense.

Also, look at the cost of replacement and compare it to the warranty cost. At what point does it make sense to pay for the coverage or take a chance and risk having to buy the product or a similar product again?

While we love protecting our investments, sometimes we can ‘overprotect’ them by buying into every plan that’s thrown at us. While the SquareTrade plan is good, unless you’re buying a rather expensive item, you may want to skip the warranty this time and take your chances.

Kim Pinnelli is a personal finance freelance writer and contributor. She lives in the Chicago suburbs, writing from home for the last 13 years. Kim enjoys helping people understand personal finances and writes on topics about saving money, investing, planning for retirement, and ways to increase income. In her free time, Kim enjoys hanging out with her 3 children, reading, crocheting, and spending time outdoors.

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