You finally pick out the HDTV you've been saving for and just before you hand over the credit card at the store, the salesperson says you ought to purchase the extended warranty to protect your investment.
What's that? You don't want to spend an extra $200 for a "product service plan" on top of a $1,500 television?
Should you?
"No," says Melissa Valentino from Consumer Reports, who says their advice for extended warranties hasn't changed much from its August 2010 report: "Skip extended warranties on most electronics as they aren't likely to break down during the extended service contract period," says Valentino.
"Service plans often cost more than you'll recover, and many have fine-print terms that can limit or disqualify your claim," she adds.
The report summary on television warranties is as follows:
It's generally not worth the money to buy an extended warranty for an LCD or plasma TV. Our survey data from thousands of TV buyers show that sets of both types from most major brands have had a very low rate of repairs for the first three years of use, and most repairs cost less than $200. A warranty often costs just as much if not more than that. Use a credit card that doubles your warranty, or shop at a retailer like Costco, which adds one year to the standard coverage. Detailed repair rates by brand are available to subscribers.
Consumer Reports also says to buy reliable brands and models, and follow the manufacturer's usage and maintenance recommendations.
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