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If you’re making a big purchase, like a laptop or couch, or even a small one (seriously, Amazon sells extended warranty coverage for $20 charging cords now), you might be asked if you want to pay extra for an extended warranty on the item. Do you? Probably not — and here’s why.

Extended warranties aren’t free

An extended warranty costs you extra on top of the purchase price of the item you’re buying, and paying for one may not end up being worth it. Extended warranties are huge money makers for the companies that sell them — estimates vary, but as much as 50%-70% of its cost could be the profit margin for the retail store where you buy one.

And if you elect to buy the warranty and end up needing to use it, you could find yourself shelling out money there, too. You may need to pay fees or deductibles before the coverage kicks in, or you might need to cover the cost to ship an item for repairs or to be replaced. Certain parts or types of damage might not be covered.

If you’re bound and determined to get the extended warranty, at least ask for a copy of it so you can read it ahead of time and see just what it covers (and what it’ll cost you to use it, on top of what you’re already paying for the coverage). And consider the possibility you may not need it at all.

Do you even need that warranty?

In addition to being expensive, the extended warranty might not even be necessary.

The retailer may work with you

Depending on where you’ve bought the item you’re considering getting an extended warranty for, you may have built-in protections from the retailer. Costco is one example of a retailer with a stellar return policy. There are exceptions to its “returns at any time” policy, and they include electronics, appliances, and TVs — these are purchases that people may buy an extended warranty for.

But in this case, Costco may still help with your problem — for example, it offers a free extended warranty on top of the manufacturer’s warranty on your TV. It might not be worth paying for an extended warranty, but getting one for free sounds pretty great.

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Your credit card might cover you

One of the major reasons why it’s worth making a big purchase with a credit card is free purchase protection. If the item breaks or is stolen within a certain period after purchase (often 90 or 120 days), you can get a refund, or have it repaired or replaced.

Coverage limits vary (some higher-end cards might cover as much as $10,000, for example), and you may be limited in how many claims you can file in a year. Check the fine print for your credit cards to choose the right one for a purchase.

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The manufacturer’s warranty could suffice

Before shelling out extra money, take the time to explore the warranty the item comes with automatically. Chances are good you’ll be covered if something goes wrong within a certain period.

And honestly, after the warranty period is over, if something breaks, it’s worth reaching out to the manufacturer anyway and asking for help. It’s good customer service, and some companies prioritize this.

Researching your purchase could give you confidence

Finally, consider why you think you need that extended warranty to begin with. A 2019 study uncovered a big reason why many people opt for the extended warranty — they believe the item they’re buying is more likely to break than it actually is.

If you’re shopping for a new TV, computer, appliance, or piece of furniture, spend some time researching how that item performs for consumers like you. Read product reviews, and lean on ratings from major authorities in the consumer testing space (such as Consumer Reports).

If you feel confident that the item you’re buying is a solid product with little chance of breaking or failing on you, you’re likely to feel better about turning down the extended warranty — and will save money in the process. Oh, and while you’re at it, aim to take good care of the item you’re buying — if it’s a cellphone, buy a protective case and treat it gently.

An extended warranty might seem like a wise purchase if you’re buying a big-ticket item — but is it really necessary? In most cases, the answer is no, thanks to existing protections you’re entitled to. And forgoing the extended warranty will improve your bottom line.

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Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.