Many salespeople and shopping websites offer extended warranties with TV purchases. The sales pitch for an extended warranty is enticing. It extends the manufacturer's warranty by a few years, just in case you run into problems. Extended TV warranties are a bit more complicated than just that, though. You should understand a few things when deciding whether you need an extended warranty for your TV.
What Is Typically Covered In an Extended TV Warranty?
Most extended warranties cover all parts of the television, including the controls, the lamp, the power supply and potentially the ports. Some extended TV warranties will pay for repairs only if the damage was caused by a manufacturing defect. This means errors in manufacturing caused a button to fail or a pixel to burn out. Others cover normal wear-and-tear and accidental damage.
Can an Extended Warranty Save You Money?
There is no way to tell whether an extended warranty will definitely save you money. If you have few to no problems with your television, then the warranty was a waste of money. If your set breaks because of a defect in three years, then the warranty pays for itself. Keep in mind that technology is always improving, so you may not even want to keep the same TV set for more than a few years.
What Are the Downsides of Purchasing an Extended TV Warranty?
The main downside is that the extended warranty increases the cost of the television. Extended warranties can add between 10 and 25% to the cost of the TV. Then if you do have a problem with your TV, making a claim with the extended warranty is likely going to be a hassle. Most have very specific technicians they use and may even require you to mail it to them. Your TV could be out for repairs for weeks. Another consideration? With a failure rate of less than 5% over the course of five years, an extended warranty is going to be a waste of money 95% of the time.
Deciding Whether an Extended Warranty is a Good Idea for Your TV
When you're considering the extended warranty, you should balance what the extended warranty covers against the price of the TV. For example, if the warranty is pricey but the TV is pretty cheap, the warranty wouldn't be a good investment. However, if you're making a large investment in an expensive TV, then an extended warranty would be a good choice. Make sure the warranty covers everything, has no hidden fees and has no service limitations.
