Are Extended Warranties Worth The Cost?

BY STANLEY ZAROWIN


Should I purchase an extended warranty when I buy a new computer?
 

In my opinion, no. I know they sound awfully attractive. After all, wouldn’t it be great to just pick up the phone and have the insurance company send a repairperson?

But in my experience and in the experience of the editors of Consumer Reports, new computers—and all high-tech items, for that matter—fail so infrequently after the manufacturers’ warranties run out that the insurance policies are almost never used. Most such policies often produce a bigger profit for the retailer than does the computer itself.

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