Extended Warranty- Worth it?

Question

I just bought the new 58" Samsung plasma, which comes w/ only a 1 yr warranty from Samsung. Is the $500 4-yr warranty justified??? Personally I'd like to gamble and not get it, but the fact that it's a plasma, and a big one at that, kind of worries me. Any thoughts???

Answer 1

Imagine this...just three days after your samsung warranty expires, the tv suddenly wont turn on.  You take it to you local repair shop and they look at it.  They quote you a repair price of $600 - $800 to replace the power supply and labor.  Hmmm that $500 4yr warranty isnt looking so bad.  Or maybe you have kids/grandkids, one of them decides they want to show you how well they can throw a ball.  Next thing you know, Crash, the screen is broken.  Most extended repair comanies will pay to have a screen replaced.  You would be looking in the neighborhood of around $2000 - $4000 to get it replaced out of pocket.

My point being is, if it were a $80 dvd player, I would say skip the extended warranty, if it were a $3000 plasma tv, then $500 for an extended warranty isnt a bad investment.  Especially when you consider the repair cost versus $125/yr for 4 years its a bargin.

Make sure you read the extended warranty terms though!! Know exatcly what they are willing to have repaired.  Some companies will cover just about anything, others wont.  If the extented warranty doesnt seem to cover enough possible repairs, then shop else where for the same tv.  Different retailers use different warranty companies.

Answer 2

An extended warranty is basically an insurance policy.  So, let's look at this like car insurance.

The Insurance people are gambling that they won't have to pay a claim, you are gambling that they may.  You can pay $500 up front for the policy.  If you didn't pay the $500 up front, how likely would you be able to pay the $500 for a repair down the line if you didn't have the policy?

If you likely would not be able to pay the $500 later or the TV is going to need more than $500 in repairs, then the policy is a good thing.  If not, then you are not getting any value out of the policy.

My *personal* opinion is put the $500 in a money market account and be self insured.

I hope this helps.