Extended warranties generate massive revenue in the U.S. In 2024, consumers spent an estimated $48.4 billion on protection plans for items such as vehicles, electronics and appliances, according to market research firm IMARC.

However, many financial experts advise against purchasing these warranties in most situations. They’re often overpriced and rarely provide value.

Filip Telibasa, CFP, owner and planner at Benzina Wealth, notes that millionaires avoid extended warranties because “[m]ost know these are high-margin offerings meant to prey on emotion, not logic.”