[ALERT] Gadget Insurance and Extended Warranties - Comments Page 1

Great article! I have purchased extended warranties in the past for electronic devices and have only benefited one time via AT&T when I broke my phone....figure I could of just bought a used one or a new one for my insurance payments over the years. Regarding Square Trade I have purchased from them recently--Noted that Costco also has promoted them within their stores which is usually a good sign. thanks for your articles. Marshall

Do you feel the same way about Apple Care?

I got an 'extended warranty' when I bought an expensive BluRay DVD player from Amazon.com and I'm glad I did. It failed and after 3 repairs by the factory within one year was out of warranty.

I contacted Square Trade, returned the unusable player to them and got my full price back from them within a day after UPS picked it up.

The repayment came in an Amazon Gift Card and I used it to purchase another BluRay DVD player & another extended warranty from them.

Great tips in your Alert - Thank you!

Great article, thanks Bob

We have purchased extended warranties for all appliances-thank goodness! We bought 5 appliances from Lowe's and got a great deal on the extended warranty. It's a 5 year warranty which we used on 4 of the appliances. One had something wrong that was fixed 3 times. After the refrigerator had the same problem again, we were given our full purchase price. We bought another refrigerator and bought the extended warranty. Two weeks and 1 year after we bought it, we had some problems. The cost of repair would have exceeded our warranty cost, so we're ahead. This refrigerator was rated #1 on Consumer Reports and expensive. Even the repair man said he would always get an extended warranty.
Thanks for the advise on phone warranties. I have noticed Square Trade at Costco now, too. I plan to switch my phone warranty to them.
Thanks for your great articles!

I agree completely that extended warranties are a complete waste of money. However, there is one exception...kitchen stoves. It is impossible these days to buy a stove without electronic controls. Appliance manufacturers seem not to understand that high heat and computer chips just aren't a good match and are almost certain to fail long before the life expectancy of the appliance. When they do fail the cost of the repair is such that you are further ahead just to buy a brand new range. None of this is any accident....it is exactly what those manufacturers want you to do. In this one instance, your only semblance of protection is with the extended warranty.

Thank you so much, Bob! Any "insurance" is a "the house always wins" gamble. You're gambling against a worst-case scenario and the insurance provider is gambling that you never need it. Of course, the provider has sometimes pages of small-print caveats, which ensures you can never use it, or, if you do file a claim, you will pay them back.

Gambling is not a wise use of $$. Remember, THE HOUSE ALWAYS WINS!

Re: James Ford's question about AppleCare: I purchased it when I converted to Apple. I had no issues with needing any replacements, but I feel I certainly got my money's worth in advice (quickly) when I was having problems just operating the computer. Knowing then what I know now, I'd do it all over again.

Normally don't buy, but did purchase a Square Trade plan for $40.00 for a $300.00 tablet. Packed the tablet in my soft luggage and the charger pressed on the screen and broke it. Contacted them and they requested I send it to them. The unit was a little over a year old. They sent a new one, no questions, no hassle. These people treated me well.

The ONLY time I did was with our first big scren HDTV which at the time were still in its infancy.
It was not necessary but they came and cleaned it yearly for the 4yrs of coverage.
Great advice for the unexpecting consumer!

I purchased a 5 year insurance plan through Square Trade for about $60, on new Samsung fridge.

The refrigerator worked fine for about 4 years then starter having a water buildup at the bottom of the fresh food section.

After multiple attempts to fix it I was given the choice of another repair try or refund of the purchase price (about $950 dollars). At this point I opted for the refund. Square Trade gave me no hassles and promptly sent out a check for the full refund amount.

The only complaint I have is with the repair company chosen by Square Trade. The fix should have been taken care of without having to make repeated service calls.

I agree that the extended warranties for devices that need repair or replacement due to a defect is a big waste. The main reason I got it is for replacement coverage in case I lose my phone, which is probably more likely than it breaking down. But you are saying I can get a rider on my homeowners insurance? I will check that out?

If you have homeowners insurance, call your agent to see if you can add a rider for your electronics. I pay $27 per year (yes, per year)! It gives me $5000 coverage for all my computers and smart phones with a $50 deductible. It doesn't cover warranty stuff such as if the phone should stop working. But it does cover theft, breakage, dropping it on the street or in the toilet, etc. It probably doesn't cover the guy who swallowed his cell phone. http://www.livescience.com/54704-swallow-cellphone.html

Also, if you purchase on a credit card, many credit cards will automatically double the warranty up to one year. So a one year warranty becomes a two year warranty. Check your credit card agreements.

I agree with your advice about extended warranties on cell phones. My experience is the system is rigged against the consumer. I have however purchased extended warranties on many large kitchen appliances through the years (mostly from Sears) and for the most part have been satisfied with the outcome.
Thanks for your helpful and informative articles.

I got an extended extended warranty from Dell. I don't know what I could get if my computer dies. However, it includes fast tech support you can contact at any time. Just like in the old days.

I got an extended extended warranty from Dell. I don't know what I could get if my computer dies. However, it includes fast tech support you can contact at any time. Just like in the old days.

I just more than collected on my AppleCare for my iMac. I was just 2 months short of AppleCare expiring when my screen went black. After they fixed it I asked what the repair would have cost without the insurance and was told it would have been cheaper to buy a whole new iMac. Sooooo, one case where the insurance was worth the money.

I see some positive comments about Square Trade, but my experience is just the opposite.
I purchased a refurbished phone that offered Square Trade so I bought it. I also purchased Square Trade on 4 other electronic purchases.
After about 6 months, the camera quit working on the cell phone, so I contacted them and they had me send it in. After a few days, the said my claim was denied as they stated they had discovered previous water damage which was causing the camera malfunction. I'm meticulous to a fault with my electronics, so I know it was nothing I was at fault for.
I was furious that they would offer insurance on refurbs or used items if this was indeed their policy.
I will NEVER use Square Trade again and anyone who uses them when buying used or refurb items needs to be aware of this.

Having worked for many years in the electronics industry, I've come to understand that with consumer electronics, it's usually an either/or situation. Meaning that if an electronically controlled product is going to die, it is likely to happen right out of the box, or in the first three months, or so, which is usually covered by the manufacturers 90 day or 12 month warranty, or it will likely live its expected life. Devices with motors, such as washers, dryers and dishwashers, or compressors, such as refrigerators or air conditioners, are more mechanical devices, and are more likely to die sooner than purely electronic products, such as TVs and computers, which will become technologically obsolete, and discarded, before they die.

Most product warranties only cover manufacturer defects, not damage due to power surges, breakage, loss, severe impact or liquid submersion, etc. For those situations an extended warranty, also known as a service plan, sold through either the retailer or a third party, such as Square Trade will cover those situations, and often offer occasional cleanings or tune-ups, depending on the plan's terms.

For best reliability, one should try to stick with those made by the original manufacturer, such as Sony, Samsung, LG and HP, as opposed to now fourth and fifth tier brands such as RCA, Maganvox, Sylvania, Westinghouse and Polaroid, who's manufacturers have been out of business for many years. Those brand names were spun off and gobbled up by distributors who have put them on products of lower quality or technology, in the hope that consumers will purchase those products based only on their well-known names.

I have always felt that insurance in general was at best a bet against yourself. I never buy extended warranties and I don't buy other insurance unless it's mandated by law and I can't get around it.

Insurance started out as a scam by the gangs in New York. Back then it was called extortion. They would tell a shop owner that if they didn't pay, something would happen to their shop. Those that didn't pay had the same gang break in and tear the place up.

Those who don't study history are doomed to repeat it.