 Helping you save money by avoiding things you don't need to buy, here's Dave Ramsey with today's Ramsey Reality Check. Don't buy an extended warranty. Extended warranties are insurance. 87% of the cost of the warranty covers commission, overhead, statistical payout, and profit. In other words, put 13% of what you would pay into a bank, and that will, on average, cover the cost of fixing the item. To get free resources to take control of your money, go to DaveRamsey.com.