Following the festive season sales, leading e-commerce platforms like Amazon and Myntra are enticing Indian customers with Black Friday sales, offering a plethora of discounts and other enticing offers. Traditionally observed on November 24, symbolising the commencement of the Christmas shopping season in the West, Black Friday has now expanded its influence in India as well.

So, if you are planning to avail of discounts and offers this Black Friday, you can consider buying a warranty or gadget insurance for an additional layer of protection. However, the realm of gadget protection can be confusing, with terms like warranty and insurance often being used interchangeably. But these two concepts are fundamentally different, providing varying levels of cover for your devices. So, first things first, what is the difference between a warranty and gadget insurance?

A warranty is typically a promise from the manufacturer to repair or replace your mobile in case of any manufacturing defects or hardware and software malfunctions during the stipulated time period known as the warranty period. One can also opt for an extended warranty period offered by few manufacturers at an additional amount.

“Gadget insurance, on the other hand, is taken to add an extra layer of protection to your new gadget. A mobile or gadget insurance typically covers losses arising out of any accidents, acts of God perils, theft, or burglary depending on what is chosen by the customer. The cover can also be extended to include any damages due to mechanical or electrical breakdown. Accidentally dropping your phone, for example, is the most common occurrence among mobile owners. Such incidents can be covered under your mobile insurance, however, the same might not be covered under a manufacturer’s warranty. Do note, if your insured gadget or mobile has any manufacturing defect such as a faulty screen, the same will be covered under the warranty,” said Adarsh Agarwal, Chief Distribution Officer, Digit General Insurance.

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Gadget insurance offers a more comprehensive coverage compared to an extended warranty, and for the same reason may cost more. To determine which is better entirely depends on your specific needs, preferences, and circumstances. If you are someone who prioritises cost-saving, is confident in your ability to take care of your device, and is primarily concerned with defects in the device and workmanship, a warranty might be sufficient. However, if you are someone who generally tends to be accident-prone or is worried about losing your device, then one should definitely consider buying a separate gadget insurance,” explains Agarwal.

One crucial aspect to remember regarding a warranty is its standard limited coverage period, often confined to one year from the date of purchase. However, many times you are also given an offer to extend available warranty at an added cost. Remember, opening the device or making any unauthorised alterations can render the warranty null and void. While a manufacturer’s warranty is attached to the product at the time of sale, an extended warranty can often be purchased afterward, depending on the terms of the manufacturer.

Fine print: Warranty vs Insurance 

There are, however, exclusions under both gadget insurance and warranties. For gadget insurance, damages due to misuse or abuse, illegal activities, intentional overloading or strain, excessive pressure or charging, and any financial loss caused by cyber-attacks or fraud are not covered. Under warranty, any accidental damage, such as drops or spills, or any unauthorised alterations to the gadget can void the warranty.

Warranty and gadget insurance terms or policy coverage may differ from manufacturer to manufacturer or insurer to insurer. Hence, check all the details carefully with them before opting for a suitable plan. Essentially, the choice between a warranty and insurance comes down to the individual’s personal needs and circumstances.