I received an email this morning in which the writer explained the following situation. They had purchased an HP computer from Staples, which, from the description, sounded like a low end system in the $400 range. Near the end of the one-year warranty, a screen appeared asking if the owner wanted to purchase an extended warranty, which the owner chose not to do. As luck would have it, the system blew a gasket about two weeks after the warranty expired. (The writer didn’t state exactly what the nature of the problem was.) Neither Staples nor HP would assist in any repairs since the original warranty had expired and the writer wanted to know what to do.
This brought to mind the nature of the extended warranty beast. I have heard all of the pros and cons about extended warranties. It seems that the only time an extended warranty is a wise choice is when someone gets to collect and get what ever it is repaired.
The cons state that extended warranties are a waste of money since it is usually a money maker for the insurance company who handles the claims. Which makes sense. Especially when it comes to life insurance because none of us wants to make a claim if you are the insured. I guess that wouldn’t be you anyway, but would be your next of kin. 🙂
But what has your experience been? Good buy or a waste of money?
In the case of a $400 computer I would be reluctant to purchase an extended warranty since the policy might cost just as much as a new system. Just my 2 cents.