A warranty is a promise from a seller or manufacturer that a product will work properly for a certain period of time, and if it doesn't, they'll repair or replace it for free. When your family buys a new dishwasher, it might come with a two-year warranty. If the dishwasher breaks during those two years because of a defect (not because someone used it incorrectly), the company will fix it without charging you.

Warranties usually come as written documents that explain exactly what's covered and for how long. A laptop might have a one-year warranty covering mechanical failures but not accidental damage from dropping it. Some warranties are limited, covering only certain parts or problems, while others are more comprehensive.

When a company offers a warranty, they're essentially saying, “We stand behind this product.” That confidence matters. A company willing to warranty its product for five years is telling you it believes it will last. A warranty that expires after 90 days might suggest the opposite.

Many stores offer extended warranties you can purchase for extra money, giving you coverage beyond the manufacturer's original warranty. Whether these are worth buying depends on the product's cost, how long you plan to use it, and how reliable it typically is.