It happens every time you buy anything with moving parts: they ask if you would like to buy the service warranty. Now, I was brought up to believe “That’s how they GET you!” as in, it’s a scam to squeeze more of your money. It can’t be that simple, right? There has to be SOME value to it.
So, Consumer Reports took a look. The first myth they bust is the old paranoid notion that “They make things to fall apart, so you will buy a new one!” Actually, they say overall repair rates have remained the same for years, with some things like LCD TVs and Laptops actually dropping. (Not MY laptop, of course. I’d like to drop it off a bridge.)
Other than that, they don’t show much love for warranty. The chief statistic being: “People with contracts who were offered a free repair or replacement for their product didn’t save much money overall. The median cost for the contract or warranty was $136; the median cost for repairs was $152.” One benefit I CAN see, is that the day you buy the laptop, you may have that money. The day it breaks, you may not. On the other, OTHER hand, they already said that laptop repair rates have been cut in half in the past years. So, who knows?
How do you decide? It may help to know what the likely problems may be for various purchases, and how much they might cost to repair. The article lists refrigerators, ranges, clothes washers, vacuums and more. Really informative read, so check it out!
How about you? Have you ever purchased the service agreement? How did that work out? Let us know over at the MindField Online Facebook page!