Are service plans from stores like Future Shop and Best Buy worth it?

Question

You know when you buy an expensive electronics item (e.g. - VCR, IPod, etc.), and they offer to sell you the store's service plan in case the item malfunctions so that you can bring it back for repairs.

Is it worth buying into those service plans from the stores? Or do you think the warranty provided by manufacturer of the item is enough?

Answer 1

Depends on the level of service you expect if your item does fail. The Warranty that comes with items for free is often not worth the paper it's printed on considering the number of hoops you have to jump through to make a claim and the number of loopholes manufacturers can use to say the service is not covered under warranty. If you have to mail your item off to a service center somewhere across the country from you and then wait until they are darned good and ready to send it back (hopefully fixed) leaving you without the item you paid for then that free warranty is not going to look so good to you now is it?

The service plans you refer to are MUCH easier to make claims under and in most cases much faster when it comes to making any needed repairs. In many cases the  retailer will opt for replacement with a new (and sometimes better) item in the interest of customer service.

Opinions on this subject vary greatly. A good rule of thumb is 10 percent of the items cost, on items over 200 dollars is a fair price for peace of mind if nothing else. I've seen more than my share of people who said "I'll take my chances." or "I think the manufacturer's warranty is good enough." who later wished they HAD purchased the service plan.

Answer 2

The basic warranty is not enough in most cases, as most people are financing their purchase and most warranties are for 90 days in part.

Conversely there is the headache associated with trying to get service for a electronics product where you bought a service plan. IN MOST CASES the salesperson will SAY ANYTHING to sell a service plan. And you take the information given in good faith and when the electronic device fails and you take it in "that is not covered" is what you get, "but I was told that by the salesperson" which they say "oh they don't work here anymore, and the waranty clearly states...."

So I think in some cases a service plan is a good idea, but in no way whould you take the word of a salesperson, have them show you in writing, the implied coverage.

You are much better off with a surge suppressor purchase before a service plan anyway.

Also stay away from the big box stores as these are infamous for the warranty bait and switch. Go to a local mom and pop, who depend on repeat customers and word of mouth, where you are not fighting Goliath.

Answer 3

I believe they are.  I bought a laptop from Circuit City 3 years ago and put their full service plan on it with accidental damage protection for around $300.  I have dropped and broken my laptop 3 times and have not paid to get it fixed.  Of course I have a 3 year old.

If you are getting a portable device, i.e. an IPod, that would be prone to being dropped then I would say its worth it if you can get the accidental damage protection.

Answer 4

It really depends on how often you use the equipment, and how rough you are with it.  If you've got an iPod that's going to be stuffed in a backpack and banged around a lot, it may be well worth the extra 15% to the price if it gets smashed.  Then again, as quickly as the technology changes, your current unit may be obsolete and ready to be upgraded to a newer model by the time it wears out.

It also depends on what the item is, and the fine print of the contract -- for example, if you had a service plan for your plasma TV and it breaks, YOU are the one responsible for lugging the TV over to the repair shop, if you bought it at Best Buy.  Some other stores (Sears is a notable example) will provide in-home service for your equipment.

If you DO go with the plan for a big-ticket item like a TV, mark the expiration date for the warranty on your calendar; and as it gets close to the end of the contract, call for service and throw a fit over how the picture quality has degraded or whatever.  Likely as not, they'll swap it out for a brand new one (which will itself have a new manufacturer's warranty) and you'll get the most value for your money.