Extended warranties on TVs

[samijubal]

Does anyone know a good company to buy an extended warranty from? If there's some to stay away from, I'd like to know which ones they are too. Any good/bad experiences anyone has had would be helpful.

[holistic]

Save your money, don't fall for the extended warranty scam. If that article doesn't change your mind then read the warranty fine print and good luck.

* Use your visa/MC (some offer the extended warranty)

[edong]

I don't normally buy service contract but I had quite an experience when I did. When I bought our Dodge minivan in 1997, the lending bank sold us a 6-year bumper-to-bumper warranty for less than $700. It was unbelievably cheap compared to what's offered by the dealer. Right after the 3-year factory warranty, the head gasket leaked then after a few months, the transmission failed. Total bill from the dealer was almost $4,000. I paid $250 each time as my deductible.

In August 2006, I bought a Sony HD camcorder for $1199 on-line. Before they shipped, I was contacted by one of their sales rep. He "pressured" me to buy a service contract for $99 for two years. First he said $150 but when I say NO, he reduced it to $99. I bought it. Anyway, right after the 90-day factory warranty, the camcorder broke. Sony charged $250 for labor. The warranty company reimbursed the full amount to me. Then right after the 90-day repair warranty, it broke again. This time the warranty provider chose the service provider. They even paid for UPS. I already got the camcorder back yesterday. I just do not know how much the warranty company paid to the service provider. Note: I only recorded on FOUR minidv tapes since I bought that Sony!

Moral lesson – Think twice before buying an American car and Sony brand products. :P

And oh, about the extended warranty, I think it's luck of the draw when choosing service contract provider unless you have access to reliable rating system. When my brother's Sony HDTV broke in less than two years, I felt guilty. Because I prevented him from buying an extended warranty contract. Bad decision.

[ozymango]

When my brother's Sony HDTV broke in less than two years, I felt guilty. Because I prevented him from buying an extended warranty contract. Bad decision.

Don't feel too bad -- what if you'd told him to get an extended warranty, and then they did one of those scam things mentioned above? Sad that we live in a world where we feel guilty because companies make crap and we end up paying extra for the honor of the purchase.

Friends don't let friends buy Sony! :P

[jman98]

You don't say where you live, but in the USA usually people buy extended warranties at the time of purchase from the store where they buy the product. I agree that usually extended warranties are a waste of money. If you want to get one, I know from personal experience that Circuit City honors their warranties and you will have no problems getting anything repaired under an extended warranty. I have never bought an extended warranty from Best Buy, but I think they are probably OK too.

[splash1955]

And oh, about the extended warranty, I think it's luck of the draw when choosing service contract provider unless you have access to reliable rating system. When my brother's Sony HDTV broke in less than two years, I felt guilty. Because I prevented him from buying an extended warranty contract. Bad decision.

it is as much "luck of the draw" as gambling where the house makes 50% off the top. anecdotes about winning are plentiful because people remember them (as you recalled from your winning warranty) -- they do not constitute serious data.

Insurance on a non catastrophic loss, should alwasy be consdered with skepticism unless an OPM (other people's money) purchas or unless the pricing schme has some rare irrational systemic advantage for yuo. A pricing scnheme advantage might be that a person buying a $100 mobile handset is paying same insurance price as a person with a $650 handset.

In the case of extended warranties the markup on sales vs payout is not 5%, like say life insurance, or 10-25% like with car indurance, it is 50%. That is why they are pitched so aggressively.

Anther factor is buyers remourse. You buy the TV. It is an optional/luxury purcahse. You feel guilt. You are very susceptable to a pitch to "protect your investment. " If you were a smat shopper you drove the sellers' profit on the TV down to about 10 to 15%. They are now going to take you for a ride and make $75 on a $150 waranty or "buyers protection."

On top of that consumer electronic generally, and especially those with few mechanical moving parts, tend to experience failure either very fast on on burn in, resulting from shipping harms, storage harms, bad install, some quirk in manufacturing of any part etc., or much much later in life when value and replacement cost is very very low.

Put your money toward the purchase of your next tv. Its present value compared to future cost is probably 50% of total replacement in 5 years.

My brother in law is an actuary. I am sure I have bothered his explanation but one ought to consider that the statisticians who figure out rates and risks for the insurance business rarely buy insurance -- unless it is with OPM.

[samijubal]

The TV is a 200 pound Sony, so not buying an extended warranty isn't an option. I don't trust Sony reliability. It was the only decent PQ CRT HDTV I could find. There's no way I can get a 200 pound TV anywhere to get it repaired and anyone who comes to work on something like that will probably charge almost as much as the TV cost. In a couple of years or less, the CRT HDTVs will be gone. I don't want an LCD or plasma. So I need a dependable warranty company.

[pinetop]

A Costco membership will get you a two year factory warranty on any computer or TV you purchase from them.

[samijubal]

Has anyone ever dealt with Repairmaster, Servicenet, GE Zurich, Philips? Those seem to be the major providers, along with Mack, who doesn't cover the picture tube, which goes out on Sony Tvs, so they are out of the question. I had a DVD recorder warranty through GE Zurich, when it went kaput, they replaced it no problem. I've seen a few complaints on the net from other people who had a warranty through them and they wouldn't do the repairs, so I don't know about using them again.

[budz]

A Costco membership will get you a two year factory warranty on any computer or TV you purchase from them.

Not anymore! Costco has changed their policies on returns for computers and TV's. They took a huge loss on electronics and computers. The new policy is I believe is 90 days.

[lc]

A Costco membership will get you a two year factory warranty on any computer or TV you purchase from them.

Not anymore! Costco has changed their policies on returns for computers and TV's. They took a huge loss on electronics and computers. The new policy is I believe is 90 days.

COSTCO recently changed their RETURN policy and now limits returns to 90 days. At the same time they made that change COSTCO started to include a service contract which gives customers a 2 year warranty (total).

There is a company in Texas (tapeworks?) that has a good prices on Mack warranties.

You have to buy it within the first 30 days of product ownership.

[oldandinthe way]

I too have a preference for buying electronics with my Mastercard which doubles the length of the manufacturer's warranty. Citibank and Chase have cards which offer this feature and do not have fees.

Having provided service for extended warranty companies when I owned a computer dealership, I can tell you the following:

Service is only as good as the independant service provider in your area.

Service providers are likely to change between the time of your purchase and the time the warranty runs out. Third party service is prone to payment disputes.

Quality of service will vary based on parts availability from the manufacturer or rebuilders.

Unpopular models will be harder to find parts for. This may include your large CRT.

If your service contract provides for exchange, out of the mainstream products like yours will create a problem.

[handyguy]

Costco gives you 2 years. This I know cause they put a big sticker on your box that says that.....

Btw, credit cards give 2x (to 2 years) free. You can buy ones longer than that for cheap from them also.

[zzyzzx]

I've never bought one, and never would have used it if I had. Having said that, I've never bought a big screen TV, laptop, or video camera either.

[TooLFooL]

you know, i too have a crappy sony hdtv that broke shortly after purchase and they sent the repairman to my house because the tv was obviously too big to move.

[pinetop]

Costco gives you 2 years. This I know cause they put a big sticker on your box that says that.....

.

This is true. They also offer a 2% back club, I have it and forget the cost. Maybe $30 additional a yr. Well worth it if you need a big screen TV, a computer, jewerly, vacations, car rentals, tires, home improvements, and at some locations theres cars.

[ntscuser]

An extended warranty is worthless. I had one on a (very expensive) Pioneer surround receiver. Various speaker channels dropped out almost from day one. It was clear to me the speaker distribution board needed changing. The firm which was nominated by the insurers to test the receiver said they could find nothing wrong with it. It became my word against there's. Rather than be drawn into a protracted dispute I bought a new receiver (which by now was much cheaper) and cancelled all my extended warranties.

The same with household insurance. Whatever I tried to claim on was the one thing not covered by the policy. Paid extra for legal cover, "sorry, doesn't cover tenancy agreements".

All insurance is a fraud.

[budz]

I paid $17.88 for a extended warranty for a SAMSUNG DVD/VCR COMBO from WALLY'S WORLD. My mom uses vhs tapes a lot and I'm sure she'll wear out the unit in no time. My understanding is if the unit can't be fixed they just give you a new unit that's comparable to the one that breaks.

I found and bought a PANASONIC VHS HIFI VCR for my mom last weekend from a garage sale over the weekend. It works well and looks brand spanking new, it cost me $3.00. so I just may return that SAMSUNG unit.

[dun4cheap]

I bought my vizio 47" LCD from Costco just before there return policy changed. So I will probably not like something about it in 2 years and take it back. I will then probably purchase the 70" for $500 less than what I paid for the 47". While the new one will only have a 90 day return policy it will have a 2 year warranty. Not a bad deal.

[handyguy]

I bought a longer guarantee at circuit city once. It includes a free head cleaning once a year. But the thing is you have to take you marchine in wait for them to do it & come & get it.

[budz]

A few weeks ago I bought a PANASONIC 32 inch LCD TV from Sears. I bought the extended warranty for $215.00. If I decide within the first year that the extended warranty is not needed Sears will refund the extended warranty money to me.

Also Sears will send a technician to my home within the first year to make sure the LCD TV is operating okay. This is of no charge to me. I'd say that's a pretty good deal.

[TBoneit]

I bought my vizio 47" LCD from Costco just before there return policy changed. So I will probably not like something about it in 2 years and take it back. I will then probably purchase the 70" for $500 less than what I paid for the 47". While the new one will only have a 90 day return policy it will have a 2 year warranty. Not a bad deal.

Which is the exact reason they changed their policy.

[dun4cheap]

actually the real reason is because technology changes so quickly that they could no longer continue to offer their uncoditional return policy on technology items. I didn't write their policy, it was all part of being a member. Are you suggesting that customers should not expect the complete package? If i buy there now, i still get to take advantage of being a member. 90 days to return technology items plus 2 year extended warranty. Soounds to me like they are adjusting to technology.

[dun4cheap]

just for your info, here is the new return policy. I just bought a nice portable AC from them which is under the unconditional warranty policy.

Membership: We will refund your membership fee in full at any time if you are dissatisfied.

Merchandise: We guarantee your satisfaction on every product we sell with a full refund.
Exceptions: Televisions, projectors, computers, cameras, camcorders, iPod/MP3 players and cellular phones must be returned within
90 days of purchase for a refund.

How to Return: Simply return your purchase to any one of our Costco warehouses worldwide for a refund (including shipping
and handling). If you are unable to return your order at one of our warehouses, please email customerservice@costco.com or
call our customer service center at 1-800-955-2292 for assistance. To expedite the processing of your return, please reference
your order number.


It pays to be a member. I love how circuit city and best buy say they cannot match their price or return policy because its a membership club. however, you can buy a membership every year and still save money.

[TBoneit]

I'm not saying their policy isn't still good. It is just that they had to adjust it as some were abusing it. In fact I remember reading where some customers were upset that they were changing their 2 year free upgrade policy on computers and TVs.

I had one customer here where I work that proudly told me he never buys ink. He just returns the printer when it runs dry. and gets one that will print again since it has new ink. To me that's abusing the system.

Edit: In fact that is why we had to adjust our return policy. You return a printer with installed ink for exchange we take the new ink out and put your ink in. You want a refund we charge for the ink.
Nou surprising me at all the guy that was bringing back bad printer after bad printer suddenly stopped doing that.

We have also had to really check serial numbers on returns. Our store got hit for $75 and another store in the chain got hit for $400+ on a video card. Customer bought it for cash in both cases.
Buy the card, go out of the store, come back in a few minutes and say "I changed my mind, I'd like to return this" In both cases the right make and model but wrong serial number and of course defective.
The wrong serial number means we can not just return it to our wholesaler for replacement.
To ice the cake the next open box buyer comes back unhappy since it doesn't work and we don't have another opened one to exchange.

We've since had the same thing happen where when we check serial numbers they weren't from us so We didn't refund.

Then there is the customer that came back one time to return a USR 56k modem. Six months past the return period. Bar code cut out and mailed for the rebate of course. Six months past the return period. Her reason for wanting to return it? "She didn't need it anymore" The modems had dropped by 50% at that time in price. She became highly indignant when we would not take it back. We really worried about losing that kind of customer, Not!