TV Extended Warranty–Should You Buy An TV Extended Warranty?

Warranty Card After you spend thousands of dollars for you new hi def television, you have one more decision to make: whether you should pay an additional several hundred dollars for the a TV extended warranty. Of course the salesman will do whatever it takes to try and sell you that warranty for your new television. But do you really need it?

If you find yourself in this position, you are not alone. According to experts, Americans spend over $9 Billion on extended warranties for electronics every year. They also estimate that only 15 out of every100 warranties sold actually file a claim.

Here are a few pointers for you to decide if you should invest in that new TV warranty.

1. Check to see if you are already covered.

Most electronics, including TVs come with warranty coverage. And many credit card companies also will extend that coverage if you use their credit card for the purchase. Sometimes retailers also extend the manufacturers warranty. You should also check your homeowners insurance to see what kind of coverage that they provide

2. Understand repair costs.

Compare the cost of potential repairs with the cost of the extended warranty cost. Would you be saving money by extending your warranty? Consumer Reports suggests that in most cases the cost of the warranty is the same cost as the repair. Experience suggests that if you just purchased a rear projection television, an extended warranty might be warranted, as they are more likely to have bulb failure.

3. Find out what repairs are covered

Make sure that you read the terms and conditions covered in the warranty. If you can’t find it in advance on the manufacturers website, then get a copy from your local retailer. You should not rely only on advice of the sales person.

4. Shop around for best pricing

Usually you don’t have to make a snap decision on a warranty. Of course you will be given a hard sell; you have to realize that there are big profits in warranties. Typically, you can take the contract home and review it up to 30 days before you have to buy the extended warranty.

In addition, most warranties are handled by third parties so you can actually shop around for best pricing. The rule of thumb is that a warranty should not be more than 20% of your television purchase price.

Also make sure that you maximize on the services offered. Some companies offer maintenance and support and others pay for pick-up and deliver services.

The choice to buy an TV extended warranty will ultimately boil down to whether your peace of mind is worth the additional money.

If you are interested in saving money on