There is an episode of “The Simpsons” wherein Homer Simpson shoves a crayon up all the way up his nose until he involuntarily gasps, “Extended warranty? How can I lose?” We won’t bore you with the story details except to mention that Homer was undergoing a crude surgery to become as stupid as possible, and his exclamation about extended warranties don’t shine a flattering light on the contracts. As far as the real world is concerned, though, are there any benefits? Should you buy extended warranties to protect your electronics?
The most generalized answer is “It’s not worth it.” Think about it: electronic retailers are quite aggressive about getting you to buy an extended warranty. Why would they bother if they weren’t on the winning side of the deal?
There are certainly reasons to get more specific, though, and there are exceptions to every rule. For instance:
Most items come with a manufacturer’s warranty that lasts a year – Most manufacturers will cover the cost of fixing or replacing your item if it breaks for a reason that isn’t your fault. These warranties typically last around a year, and according to Consumer Reports (which has done extensive research on extended warranties, and how much use we get out of them), it’s not all that common for electronics to fall apart after the manufacturer’s warranty expires.
Modern electronics are engineered to be replaced in a three-to-five year period, anyway – Ours is a product-driven culture, and today’s top-notch smartphone or tablet will be ready for the trash heap within three years, easy (cue hands linked behind back, guilty scuffing of shoe on pavement). The money that you’d use on an extended warranty is often better saved for the next generation of technology.
LCD and plasma TVs rarely need repairs within the first three years following purchase – Of course, televisions usually last a little longer than three to five years, especially HD LCD and plasma sets. Polls done by Consumer Reports indicate that televisions are actually hardy pieces of tech, and very few need to be replaced or repaired within the first three years off the shelf.
The cost of repair is often the same as the cost of the warranty – Extended warranties aren’t cheap, and oftentimes, the cost of an item’s repair matches the price of the warranty.
There are exceptions, particularly for PCs – Ultimately, only you can determine if an extended warranty is worth your money. If you’re accident prone, clumsy, or just have a talent for losing things, you may find that an extended warranty is money well-spent. Moreover, Consumer Reports’ polls point out that unlike many electronics, new PCs are actually likely to require repairs within three years—and manufacturer’s warranties for computers are gradually becoming less generous.
If you need more help researching the benefits and drawbacks of extended warranties, visit:
Should You Buy an Extended Warranty? at Yahoo
Should I Buy a TV Extended Warranty? at About.com