We are increasing the prices of our service contracts effective August. Quite simply, we are spending more money fixing products than the actual warranty. I would like at least to be even after cost of repair.
The question is: Should you buy one? The answer is maybe, depending on what products and who is selling it.
Couple of considerations:
1. Do NOT buy an outsourced extended warranty. Typically, they are call centers with no actual service providers. Check the Better Business Bureau for some pretty shocking info about these companies before you buy.
2. Do not buy an extended warranty from an out of state company....unless they have a service presence.
3. The most expensive products to repair are a washer and refrigerator. The least repaired items are microwaves and hoods. Buy the warranties accordingly.
4. Ask what the warranty covers. We will cover $250 in food loss for a refrigerator. What do they do if the product cannot be fixed 2 years into a warranty.
Again, do not be pushed into buying an extended or after market guarantee. Do some research to insure the work will be done if there is a problem.
You want to be confident the warranty is worth more then paper and ink.