What is a Pro Rata Warranty?Updated 17 days ago

A pro-rata warranty provides partial coverage for a product after the original replacement warranty period has expired. The partial coverage is a credit value offer which is calculated based on the remaining time in the pro-rata period and the corresponding percentage of the original purchase price.

A 3-year + 2-year pro-rata warranty means the product comes with a 3-year (36-month) repair/replacement warranty period, followed by an additional 2-year (24-month) pro-rata warranty period.

Since the total coverage period is 5 years (60 months), a monthly value is calculated by dividing the original purchase price by 60. This monthly value is then multiplied by the number of remaining months within the coverage period to determine the available store credit.

§If the product is found to be defective during the repair/replacement period, it will be repaired, replaced, or refunded.

§If the defect is confirmed during the pro-rata period, a pro-rata value will be calculated and provided as store credit toward the purchase of a new product.

Example:

A product is purchased for $549 and is confirmed to have a defect after 41 months of use. The product’s value per month is calculated as follows:

$549 ÷ 60 months = $9.15/month

Since there are 19 months remaining in the 60-month coverage period, the pro-rata value is calculated as:

$9.15 × 19 = $173.85

The customer is entitled to a $173.85 credit, which can be used toward the purchase of a new product or issued as a standalone store credit. Since the pro rata period is an additional benefit beyond the standard limited warranty, the usual options for repair, replacement, or refund do not apply during these pro rata years.