Extended Warranty? Laptops Always, Printers ... Maybe

The holiday season means that many of us will be expending large amounts of money, either the green or plastic kind, to purchase gifts for loved ones, or even ourselves (grin). My job today is to convince you to think beyond the excitement of the purchase and to that day or days when the thing you just had to have lets you down and quits working.

What preparations did you make for that eventuality? Depending on how the original purchase was made, your options may be limited to getting a free replacement, free repair, paying more than the unit is worth to repair it or just throwing that "toy" into the trash and buying a new one.

Obviously, the first two options are preferable, but how does a consumer receive that peace of mind? The easiest way is to purchase an extended warranty at the point of sale. However, believe it or not, the same coverage can cost twice as much at different stores. My suggestion is to not only research the purchase price of the product, but also the cost of extended warranties.

This type of extended warranty is also easier for consumers. An example would be if you bought a product and warranty at Best Buy then you could deal with any store directly for repair or replacement.

Sometimes the cost differences are so extreme that it is worth it to pay slightly more for the product in order to get a better deal on the expended warranty. Caveat emptor, dear readers ... caveat emptor.

Credit card holders should look at the fine print of their contracts. Premium cards have a perk that will automatically extend the original manufacturer's warranty and/or an extended warranty. However, that usually requires dealing with someone at a toll-free number and a waiting period.

Another avenue is checking with your discount card stores such as Sam's. These companies are now selling extended warranties on almost anything based on the purchase price and that can be a good deal. You just buy the warranty at the register and either goes online or by telephone register the product. It's that simple

I have been criticized in the past for being a proponent of extended warranties and I respect my detractor's opinions. I do not buy extended warranties on everything, but if there is a possibility of a big repair bill to replace a key component of my 62-inch TV, you bet I'll pay another $150 for peace of mind for three years.

It's the same philosophy I use to rationalize my $85 year to AAA and a few hundred to the home warranty company I use to hedge on the cost of major repairs.

Laptops and high-end PDAs and cell phones go through a lot of abuse in the field and run a higher percentage of damage than a same-priced stereo receiver sitting on a shelf. Laptops that seldom leave the office are not necessarily good candidates for these warranties. Desktop computers are usually stable as are standard CRT monitors. The jury is still out on the increasingly popular LCD-type monitors and TVs. The question there is how long the color clarity will hold versus the technology curve changing to such an extent that it will be replaced before it breaks down.

Many cell phone companies offer a low-cast policy that will allow you to replace a stolen phone at a low cost (usually $50 or less) and that has paid for several high-end phones for me. The same policy allows you to either have a defective phone replaced free or low cost. My son has received several free upgrades because his broken or stolen phone was no longer in stock.

I know lots of folks who consider these warranties a rip-off. Some are worth the money, others are not. Hindsight is 20-20 (grin).

Laptops, high-end digital cameras and associated lenses should also be considered for all casualty insurance. Check with your individual insurance agents for coverage. If a device is used for business many times it will not be covered by homeowner or renter insurance. Also, some policies require riders for this type of equipment. If the devices are used commercially or in business, all casualty marine policies may be needed.

Your electronic purchases are big individual or family investments. Spend the extra money needed to grant peace of mind. In the long run it will pay off.